Hello. Currently we incentive our reps on the number of leads that they call per day. We also metric conversions from leads to software demos. We put most of the weight on the number of leads they call. The idea being that the more people they contact, the more our brand is spread. However, this can produce loop holes and ways that SDRs can manipulate the metrics to their advantage. What is the most effective way to metric sales development rep performance?

Sales Manager
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This may be an obvious one, but can you correlate the amount of dollars that actually come in from their phone calls? You could metric them based off of the dollars and business that closes as a result of their dialing...?
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I give my SDRs 'activity' cash bonuses. If their activity levels are high, and they are making a bunch of calls, I will surprise them with a bonus of a couple hundred bucks. I don't do it every time because I want to build this habit into them without the new normal being bonuses for everyone all the time.
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Our performance is heavily tied to how many dials we make and conversions we get. Basically, our "quota" is dials and so it is advantageous to us to call a bunch to exceed quota and therefore make more money. There are also check and balances of conversion metrics to make sure the dials are legitimate. 
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In my experience, companies typically have quota attainment tied to both a booked meetings per month number, and a pipeline generation number. For example, you might need 20 demos a month and $200K in pipeline per month. This ensure that the SDR is not setting up bogus first meetings that aren't getting you anywhere. For an easy way to differentiate, book more meetings, and grow your pipeline, check out bizgifter.com. You can send unique, personal gifts to prospects without all the logistical work behind it. 
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Agree with bizgifter. Metrics are typically calls 'booked', outbound dial count, and conversion to actual revenue or won business.
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We get a bonus (cash $, relatively small) dependent on the number of leads we touch per month. There are different tiers of the bonus depending on how far over target you go. 
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Mike Cartwright
I think salesdev_RJ pinned this one down. Any updates on what your team had done? It's very important to monitor the outgoing calls that your agents make so you won't end up overpaying them for something that doesn't benefit the entire company.
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