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SPT profile picture

SPT

Director, Channel Sales & Partner Alliances

Valued Contributor
Personal Narrative
Member
+4

Side hustle - how to quote this PT job?

I'm applying for a part time gig to help a sales team put together prospect lists. It is just researching on the web and through their ZoomInfo account. The company is small and they sell to U.S. state government agencies (CRM and document management tech). For lots of work researching and formatting spreadsheets, how much would you charge by the hour? They are a 20 person company.

💰 Compensation
🤑 Side Hustle
💻 Virtual selling
10

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oldcloser
Arsonist
9
💀
This one is more tied to your personal requirements than what their budget will allow. But for a starting place, quantify the end delivery, i.e. # of prospects delivered, and work backwards into a closing ratio. Then hit it with a fair commission rate.

10k prospects = x meetings x % closed x deal size = $ x 5%

You could start the quoting process by asking them what their closing ratio is. When they tell you it's 10% they've given you a whole lot of room to negotiate.
DataCorrupter
Politicker
3
Account Executive
This is exactly what'd I'd do too.
SPT
Valued Contributor
2
Director, Channel Sales & Partner Alliances
I'm not sure I follow you as I've never been a closer before (SaaS SDR, BDR and partner management background - alway paid by bonuses, not commissions). I don't understand your formula. Are you saying it's best to charge a percentage of a closed deal than to get paid hourly? Sorry I don't get the commission concept.
oldcloser
Arsonist
5
💀
No worries. Here's the thing. This is going to be a negotiation. #1 Rule in negotiations - first party to barf out a number gets screwed. So, you make them do it, but indirectly by asking them how many deals they close out of 100. Let's say they tell you it's 8%. Then you ask how much their average deal size is. They tell you its $25,000. You say, "Great! Let me scope it out, and get back to you with proposed pricing." They say "Cool!" Now you have the rope with which to hang them. :)

You then scope the work, figure out how much time and effort its really going to take to deliver the list they want, the one with the right number of contacts, depth of contact, at the right companies. Then you figure out how many records you can deliver. For round numbers, let's use 5,000. Then you use your expert BDR experience to plug in conversions.

Here's the logic. 5,000 perfect records, according to your expertise and experience should yield 100 meetings. So, now, you're not delivering a list. You're delivering 100 sales opportunities.

They say they'll close 8 of them. At $25k per deal, you just gave them $200k. And you arrive at your pricing by value delivered, and at a reasonable commission rate, which is really about 10%. Since you're not going to be doing the selling, offer to work for half.

$200,000 x 5% = $10,000

Assuming you're willing to do the work necessary to accomplish the goal for $10k, you've arrived at your pricing and can now justify it.

When you present what you're bringing them, it's no longer a spreadsheet. It's a tangible result of $200,000. They should be thrilled to pay you $10k for that. Wouldn't you be?

Your value proposition is worth $190,000 in whatever the duration of their typical sales cycle is. Your price is $10k. You're no longer selling records. You're selling money, cheap.

Capiche?
SPT
Valued Contributor
2
Director, Channel Sales & Partner Alliances
Yes! Perfect 👌 👍 Thanks Old Closer!
oldcloser
Arsonist
2
💀
My pleasure. Now go and git you some money.
unclespacejam
Politicker
4
ur dad’s brother
God damn OC that is a real work of art
oldcloser
Arsonist
2
💀
Much appreciated, homie.
4
Founding BDR
Just a master at work
oldcloser
Arsonist
2
💀
Y’allz too kind. I’m just a put-together like all of us. Just been putting shit together for a long time.
Diablo
Politicker
4
Sr. AE
🫡
Pachacuti
Politicker
7
They call me Daddy, Sales Daddy
Government is a very finite market. How much help do they really need? A decent sales person should be able to put together a lead list rather handily.
That said, how many hours and what do you value your time at? And how well funded are they? How deep do they want the lists - ie. how many contacts and at what levels in the org? And do they want all the contact info, or just what can be gleaned from zoominfo and other sources?
This could be a 1000 hour project or just a 10-20 hour project depending on what they want. Be sure to nail that down up front.
oldcloser
Arsonist
4
💀
I liked my answer. I like yours better.
Yeah - what @Pachacuti said
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
too kind
SPT
Valued Contributor
2
Director, Channel Sales & Partner Alliances
Great points. I'm currently unemployed and my Unemployment insurance ran out a month ago. With no 'real' jobs on the horizon. So, I actually really need this work. They are interviewing a few other people but I -- for sure -- have the most experience. I was thinking 1099 $25 per hour. Hoping you all had an opinion on that hourly price. Thanks!
jefe
Arsonist
2
🍁
Very important considerations.
Natsochist
Good Citizen
2
Director of Product Sales
Also worth noting that, although they’ve improved dramatically in that area, ZoomInfo still struggles with government agencies in general.

As for whether it’s worth the $$, if you’ve got a super small sales team, it can absolutely be worth it to pay someone who knows what they’re doing to get the contacts ready to roll for you. Gov Sales folks with experience aren’t cheap, and you generally want them actually working on opportunities, not spending time on spreadsheets.
medhardwaredr
Opinionated
2
Director of Sales NA
Very cool opportunity! Keep at the job hunt too you’ll land somewhere great
SPT
Valued Contributor
1
Director, Channel Sales & Partner Alliances
Thank you so much 🙏
0
Founder and Lead RevOps Consultant
I sell to SMBs and I’ve found that I have lower churn / higher close rates with a monthly retainer structure that, multiplied by 12, equals no more than 1% of their annual revenue.

So, for a $3m ARR client, $2500 / month is the sweet spot.

Then I just divide that by how much I want to earn per hour.

Selling price bands has been helpful to me, rather than quoting a different hourly rate for every job.

Decent rule of thumb is to charge at least 50% more than your regular wage, since your costs will be higher (both real costs of higher self-employment tax and more filing fees, and opportunity costs incurred during fulfillment).
0
Founder and Lead RevOps Consultant
To put a number on it, I probably would charge no less than $50 / hr.

But if I was a beginner, I might do it for $25 / hr for a limited window (90 days) to earn good will + a testimonial.

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