hauru.sales
What are your key tips for negotiating the comp package with the employer - as a fresh sales rep?
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If you've never held a sales role before you don't have a ton of leverage when it comes to salary negotiations aside from if what they're offering is well below market rate.
It never hurts to ask, but it's unlikely an employer is going to play hardball negotiations with a rookie.
It never hurts to ask, but it's unlikely an employer is going to play hardball negotiations with a rookie.
Work for Dan Price. He pays everyone $70k!
Dan Price for the win LOL
Dude is such a blowhard…
I fucking hate him.
I don’t even think his message is bad it’s the way he goes about it and the holier than thou essence he brings
Yes agreed. I don't think the man is capable of going 1 day without mentioning it.
1) If you are NEW NEW: Do NOT, under any circumstances, answer the question "What do you expect to make" without doing number 2.
2) Understand the market rate for your role locally, regionally, and nationally.
3) The worst someone can say is no...kind of. Sometimes they can toss your offer out if you ask for something absolutely insane, so be calculated.
2) Understand the market rate for your role locally, regionally, and nationally.
3) The worst someone can say is no...kind of. Sometimes they can toss your offer out if you ask for something absolutely insane, so be calculated.
Think through many different options for increasing your overall comp - things such as additional PTO, stock options, flexible working hours, hybrid working from home, increased expenses (mileage for car, etc). Basically be prepared for not just negotiating your base structure, but all sorts of additional things you can ask for if they say no to the base
Pulled out this excerpt from Chris Voss book, Never Split the Difference. A lot of the advice below should give a nice framework to work with:
1. Be pleasantly persistent on non salary termsa. If it’s about negotiating extra vacation time or RRSP benefits this could be used as leverage to even get them to give you extra for your base in lieu of the benefits you requested2. Salary terms without success terms is russian roulettea. You need to clearly define what your responsibilities are and the commitment you have to the KPIs3. Spark their interest in your success and gain an unofficial mentora. You’re asking them to go up to bat for you, don’t be afraid to ask what they believe it will take to be very successful in the role
Best of luck buddy!
1. Be pleasantly persistent on non salary termsa. If it’s about negotiating extra vacation time or RRSP benefits this could be used as leverage to even get them to give you extra for your base in lieu of the benefits you requested2. Salary terms without success terms is russian roulettea. You need to clearly define what your responsibilities are and the commitment you have to the KPIs3. Spark their interest in your success and gain an unofficial mentora. You’re asking them to go up to bat for you, don’t be afraid to ask what they believe it will take to be very successful in the role
Best of luck buddy!
100% this. Great book btw too.
Don't lean on the money if you're new. Push for something like an extra 1-2% retirement account match (RRSPs for us Canadians, whatever the hell americans use... IRA? Roth IRA? 401k? - side bar, just name it something like us... registered retirement savings plan)
Push for an extra day off. If the policy is... 10 days PTO, ask for 12. You don't have to take them, but it's a win and you'll get paid out. Free money.
If you are going to push for more cash, you'll find yourself at a very short list.
Other things I would shoot for:
Retirement increase %
Vacation Time/PTO
Annual Raise linked with with your city/region CPI increase. (IF YOU DON'T HAVE THIS AS A MINIMUM YOU ARE LITERALLY LOSING MONEY[value of your labour] EVERY YEAR YOU WORK FOR YOUR EMPLOYER) it's usually small like 1-2%.
My employment contract has pay increases annually 2.5% or CPI whatever is greater. This gives the employer cost certainty. A 12.5% raise over 5 years. Decent... oh and it compounds.
Example. You make $50.00/hr as a senior AE - $104k annually.
Year 1 $50.00 - $104k
Year 2 $51.25 - $106k
Year 3 $52.53 - $109k
Year 4 $53.84 - $112k
Year 5 $55.19 - $115k
You just got a 10k raise for talking about 2.5%... or CPI. Win.
Don't lean on the money if you're new. Push for something like an extra 1-2% retirement account match (RRSPs for us Canadians, whatever the hell americans use... IRA? Roth IRA? 401k? - side bar, just name it something like us... registered retirement savings plan)
Push for an extra day off. If the policy is... 10 days PTO, ask for 12. You don't have to take them, but it's a win and you'll get paid out. Free money.
If you are going to push for more cash, you'll find yourself at a very short list.
Other things I would shoot for:
Retirement increase %
Vacation Time/PTO
Annual Raise linked with with your city/region CPI increase. (IF YOU DON'T HAVE THIS AS A MINIMUM YOU ARE LITERALLY LOSING MONEY[value of your labour] EVERY YEAR YOU WORK FOR YOUR EMPLOYER) it's usually small like 1-2%.
My employment contract has pay increases annually 2.5% or CPI whatever is greater. This gives the employer cost certainty. A 12.5% raise over 5 years. Decent... oh and it compounds.
Example. You make $50.00/hr as a senior AE - $104k annually.
Year 1 $50.00 - $104k
Year 2 $51.25 - $106k
Year 3 $52.53 - $109k
Year 4 $53.84 - $112k
Year 5 $55.19 - $115k
You just got a 10k raise for talking about 2.5%... or CPI. Win.
The CPI piece of this is super solid advice. Inflation is a silent killer, anything you can do to fight it is smart. This is fairly standard practice in Germany!
BET ON YOURSELF. Work hard, grind it out. Leverage all the multipliers, uncapped opps ect. Prove to them, you are worth it and then negotiate.
Push for an extra day off. If the policy is... 10 days PTO, ask for 12. You don't have to take them, but it's a win and you'll get paid out. Free money.
Think through many different options for increasing your overall comp - things such as additional PTO, stock options, flexible working hours, hybrid working from home, increased expenses (mileage for car, etc). Basically be prepared for not just negotiating your base structure, but all sorts of additional things you can ask for if they say no to the base
Work for Dan Price. He pays everyone $70k!
be super clear up front what your expectations are, if they come in in line theres nothing to negotiate, if they're way off then its a red flag anyway and if it's +- 5000 that breaks down to be being 250/paycheck so ask if it's worth it to argue for that if yes then go for it
negotiating shorter review periods if you can get them to give you small raises more often and drawing out a plan then you can win faster
Lack of experience = Lack of leverage. However, that does not stop you in putting things in place based on your future performance. Create the world you want to live in "when you perform".
Agreed!
If you've never held a sales role before you don't have a ton of leverage when it comes to salary negotiations aside from if what they're offering is well below market rate.
The Psychology of Money by Morgan Housel
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