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Do.it.for.the.checks

Account Executive

Politicker
Valued Contributor
Catalyst
+6

Signing Bonus?

Evening Savages!


What's the expectation on signing bonuses from a mid to small sized company?


I'm down to two opportunities one with a massive tech firm that I can easily find comps and the 2nd with a midsized (2nd PE owned soo guessing 25-50 million in rev).


I really prefer the smaller firm, but is it customary to get or negotiate a signing bonus with this size company? The massive firm is going to offer 30-40k (VP referral, he shot it straight with me)


Money in hand is always tempting.

☁️ Software Tech
💰 Compensation
23

29 comments

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ragnarlothbrok
Politicker
4
Key account manager
bruh i'd love a signing bonus lol, dont think theyre as common here in the UK but I could be wrong. Perhaps I am just in the wrong sector
sugardaddy
Politicker
1
🍬
I think its way more common in the US. In Denmark where i'm based theres no such thing as signing bonus, but i like the idea! 😉
Do.it.for.the.checks
Politicker
0
Account Executive
Well I'm asking because I don't know. I just know the large software company does offer them.

Its a way to keep comp plans the same but remain competitive in the market. You can't have a 100 AEs with 100 different comp structures.

The small company may prefer to negotiate base or commission. But with the ramp time, I will be losing the variable part of my income so I'd prefer a bonus to cover the difference
InQ5WeTrust
Arsonist
4
No marketing, mayo isn't an MQL
It never hurts to ask. 

Make a case as to why it's justified. May be other incentives they can offer as well. 


UrAssIsSaaS
Arsonist
3
SaaS Eater
Ive only ever received a relocation bonus but not really signing. Is the larger firm going to pay you ramp on top of the singing bonus? 

At this point it cant hurt to ask, I know we are being really aggressive with talent right now so you never know what you can pull out of the smaller company by asking. 
poweredbycaffeine
WR Lieutenant
2
☕️
My best signing bonus: $0

I can't believe that's a thing that people can get now in sales. If you missed out on commission by moving to a new opportunity, that was your choice. Now you can tell the new company you are going to miss out on $12k and they'll just straight-up pay you if they want you badly enough...but I've only seen it for ENT level roles.
Do.it.for.the.checks
Politicker
0
Account Executive
For what its worth, this is an Enterprise role. I was recently let go (long story I've posted about), but if I was switching 3 to 6 month ramp means 60ish K in lost revenue.

And in all reality its a 6 to 12 month sales cycle so I might be losing more than that unless I can pull some quick wins.
poweredbycaffeine
WR Lieutenant
3
☕️
Ah, got it. Typically I've been given a guaranteed payout during ramp...seems like a signing bonus but spread over 3 months.
Do.it.for.the.checks
Politicker
1
Account Executive
This is possibly the better ask. Much more straight rational then give me money. 

Thanks!
softwarebro
Politicker
2
Sales Director
does 22k-30k post-tax dollars negate all the positives of the smaller firm? What is the opportunity outlook? The reason I ask is if this is the enterprise space you can make that signing bonus up and more in one deal. First, ask the midsize if there is a signing bonus. Second, ask if you will be given qualified leads to chase that could make up for the lack of a signing bonus. 
Incognito
WR Officer
1
Master of Disaster
I got a 10k signing bonus but also a decent salary so 🤷‍♀️
CuriousFox
WR Officer
0
🦊
Um share your negotiation strategy missy.
SlinginSoftware
Politicker
1
Account Executive
Is the bonus straight caaaash? Or is it in stock?

I went from a large company to a small startup and was offered around $75k, but it was all in stock.
Do.it.for.the.checks
Politicker
0
Account Executive
I'd imagine a split. PE backed so some sort of 4 year vest would make sense
Diablo
Politicker
1
Sr. AE
Bonus in the form of real money is always tempting. I have always got an option of stock but no cash. If I would get cash, that would be my preference.
slaydie
Big Shot
1
Account Executive
I've heard of 10-15k signing bonuses, both of which were offered this year so I think it may be becoming more common in the US. I'd recommend asking the other company who hasn't offered
Do.it.for.the.checks
Politicker
0
Account Executive
Thanks!
Blackwargreymon
Politicker
1
MDR
Make a case as to why it's justified. May be other incentives they can offer as well. 
Clashingsoulsspell
Politicker
1
ISR
bruh i'd love a signing bonus lol, dont think theyre as common here in the UK but I could be wrong. Perhaps I am just in the wrong sector
SaaSData
Catalyst
0
VP of SaaS & Unit Economics 🏴‍☠️
The answer....

Always take a drawer, specifically a 3-month, non recoverable against your variable compensation.

Never take a new job without one.

If you do, you're devaluing the rest of the sales world.

If you're really good you can stretch it to maybe, 4 or 6.  Doubtful.

You'd have to prove you were walking from some massive deals.  Not likely.

But yes, 3-month, non-recoverable drawer or don't take the job.

-SaaSData
lmk if I can help

text me @ (908) 676-SaaS with your e-mail to opt-in
Do.it.for.the.checks
Politicker
0
Account Executive
So question on this answer. Is this common place or am I asking for something out of the norm?
SaaSData
Catalyst
0
VP of SaaS & Unit Economics 🏴‍☠️
Signing bonus is a little bit weird?

Ask for a Drawer, non-recoverable.  The risk is high for a company with a Signing Bonus.  Not a SaaS Normal Procedure.  Don't ask.  Play in the rules and you'll get more.

-SaaSData
lmk if I can help

text me @ (908) 676-SaaS for any questions 24/7 - always available
Do.it.for.the.checks
Politicker
0
Account Executive
I meant a non-recoverable draw. Is that normal in SaaS? I've heard of this but only in other industries like logistics who operate at a much higher velocity.

Fwiw, there's a 6 figure base, double that OTE, a sales cycle of 6 to 9 months. Not sure if that makes it more or less important to ask
SaaSData
Catalyst
1
VP of SaaS & Unit Economics 🏴‍☠️
yes, this very normal.  you want a non-recoverable 3 month drawer.

every job i took where i was a passive candidate it was just included in the package.

it's pretty common in most offer letters.

i used to quit jobs when i wanted to pick up the drawer and reset back to 100% variable coverage.

recoverable drawers are great for SaaS reps, everyone should try to negotiate one into their offer letters and they're very common.

they work incredibly well when you're leaving a job as an AE.  

always tell them you're leaving with a bunch of deals on the table to get the best drawer.

-SaaSData
lmk if I can help
cw95
Politicker
0
Sales Development Lead
You all get signing bonuses? We get free fruit and paid late. 
Flippinghubs
Opinionated
0
Account Executive
Would have loved one when I started
MR.StretchISR
Politicker
0
ISR
bruh i'd love a signing bonus lol, dont think theyre as common here in the UK but I could be wrong. Perhaps I am just in the wrong sector
Mr.Floaty
Politicker
0
BDR
"Here’s to a long life and a merry one. A quick death and an easy one. A pretty girl and an honest one. A cold pint and another one!"
Cyberjarre
Politicker
0
BDR
"Here’s to a long life and a merry one. A quick death and an easy one. A pretty girl and an honest one. A cold pint and another one!"

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