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Temporary guaranteed compensation\u00a0is a topic that\u00a0often comes up in our work. It sometimes scares employers who are accustomed to paying sales people based on performance.<\/p>\n
The answer depends on several factors:<\/strong><\/p>\n If a\u00a0prospective candidate\u00a0is selling at quota for another employer,\u00a0it likely took them time to ramp up and build full selling momentum.<\/p>\n Switching jobs and having to rebuild that momentum will\u00a0impact a candidate\u2019s\u00a0commissions and\u00a0income for some time.\u00a0If the person\u00a0is currently earning more in commissions than when they join your company,\u00a0this represents a big\u00a0disincentive.<\/p>\n Switching jobs also means\u00a0leaving a well known environment for one that is unfamiliar.\u00a0This translates into risk which great sales people\u00a0will want to mitigate. Furthermore,\u00a0the longer they have been with one employer, or the more successful they are, the higher the risk they assume when\u00a0changing jobs.<\/p>\n While you may be offering better long term upside and other\u00a0non-financial rewards,\u00a0there is nothing more enticing to a candidate than a large base salary. This type of\u00a0financial commitment is\u00a0a sign that an employer is ready to invest in the new hire and ensure that they are happy and productive.<\/p>\n The\u00a0most common way\u00a0to entice a great sales person to join your company is a draw. A draw\u00a0is paid on top of base salary for a set period of time while the new hire develops their sales funnel and starts to convert sales at a full rate.<\/p>\n There are two types of draws:<\/strong><\/p>\n Draws represent an effective method for\u00a0an employer\u00a0to recruit top sales talent. To mitigate risk, we encourage companies to be\u00a0selective about who they hire, and make sure there is a comprehensive on-boarding program in place. Choose the right person, invest in them and make it work.<\/p>\n To your success!<\/p>\n relpost-thumb-wrapper<\/p>\n <\/p>\n <\/p>\n <\/p>\n<\/div>\n close relpost-thumb-wrapper<\/p>\nWhat kind of guarantees should we consider?\u00a0<\/strong><\/h3>\n
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