Being headhunted... OTE questions....

[Shrimper]

...feels like a nice position to be in!

However, the company that want me are offering a package of a reasonable basic salary plus OTE.

The job is in the same industry, and I have worked closely with this company before, but I've never worked in a sales role.

They say the OTE potential is half the basic salary, maybe more, but I'm not convinced until I see some targets/forecasts. So going forwards, is there anything I should be looking out for? Any books/articles worth reading? I know the products inside out already and its potentially a massive opportunity in a small industry.

Theres lots of other considerations to think about, such as I'll be away from home at least 3-4 days a week, but just trying to consider all my options at the moment.

[Bertrum]

What's the industry?

You can do some research on the profitability/turnover of the pospective company to give you an idea. You will need to know how many other sales people they have and the commission %. To give you rough idea.

Also is it commission based or profit related bonus?

[blindswelledrat]

Potential earnings through commission is an absolute minefield and companies employing sales people often hugely exaggerate this potential hence the specifics of the commision structure is extremely important

[edc]

If they are chasing you in the real headhunting sense then ask for a guarantee.

I suspect though that given your admission that you are in process for a sales role but have no sales background that the 'headhunter' may be working on a more straight forward assignment. It is nice to be headhunted but many recruiters use the term headhunt as a sales pitch.

[Grenoble]

What field/sector is it?

To give a feel:

Software can be as low as 50% base 50% variable with capped and uncapped options
IT Services sell is often around 60%/40% or 65%/35%
Account management can be 70% /30%

Lots of variables for packages - capped/uncapped, accelerators on key products, SPIFFs, etc

You could ask for a 6 month guarantee whilst you develop your own pipeline. Will be a good test for how much they want you or if they are being speculative.

[rog007]

Some good advice being given above re guarantee of income. As a rule of thumb, one should only move for a 10-20% improvement in remuneration. If this is not on offer, then you are introducing what some would say to be unnecessary risk. Good luck!

[Shrimper]

some great replies and advice, thank you!

Its in the marine industry.

Got some reading up and research to do over the weekend I think!

[Gargamel]

would they guarantee a minimum bonus level for say six months ? ie one that would leave you no worse off than your current role.... whilst you get up to speed.

[Chr1sch]

My experience of sales is simple, if they want you, know you can earn very large amounts of money and have confidence is brand and product, the basic salary will reflect that.

You don't get tinpot sales organisations with crappy products and no references paying £25k basics and £100k OTE

All that being said, I'd look at their referenced customers, their competition, their competitions referenced customers (half the time it'll be the same ones...) and their growth & profits for past 5 years.

[Tom8]

Also remember that OTE may or may not include all elements of the package such as pensions, healthcare, critical health etc. You need to understand what the package is made of rather than just simple salaries and commissions.

[Shrimper]

Great replies, thanks all.

For what its worth, its quite a small industry which I know well. This particular company have done incredibly well in the last few years so I'd like to be involved as I know some of their upcoming projects are looking fantastic as well. Having said all that, the package would have to be right for me!

Thanks again, much appreciated

[Simond S]

if I could offer one thought.

Try to ensure that the basic salary has an escalation process in line with achievements.

You dont ever want a position where your basic salary is only a smalll percentage of your income. The reason for this is as you become more succesful your lifestyle will swallow more money. You need to ensure that when you arent working (holidays, Christmas, Easter etc..) you are not heavily affetced by lack of sales.

It is also a good negotiation point as you are only asking for an increase in salary when you have met a specific (and highly profitable to them) target.

It is much easier to negotiate a pay rise you aren't due than one you think you are.