We've put up our ads on Monster and other channels in a search for additional salespeople. (I figured after a post about getting fired I should give my readers some hope and talk about hiring)
My advisors and I have chatted about the types of salespeople we are hoping to attract and what types of compensation packages we would be looking at. We have received our first flow of resumes and have decided to schedule interviews with about 20% of the applicants. Taking a look at the base salaries that they require, it triggered me to think about one conversation that I had with one of my advisors where we were wondering if some of these high-paid salespeople could justify their high base salaries of $80,000 to $120,000 per year.
Doing some simple math, since PeerFX bases it's pricing model on service fees, these reps that are aiming to get paid a base salary of $80K to $120K should be delivering at least double that to earn their keep with the company right?
OK. so that means they need to be generating at least $160K in gross revenues for the company. Our service fees are 0.5% so that means they need to have a customer portfolio of $16M in completed transactions. Great. If somebody has the ability to bring business like that to us I would be VERY willing to pay them that base salary.
Back of a napkin math - justify your value before your throw up a random number for your desired base salary. Thank you very much.