sd2nc All American 9963 Posts user info edit post |
Alright, so I took a position as an Operations/Sales Manager for a small business (e-commerce, yearly sales of ~$750,000) with 1 sales rep in December of 2007. The company was literally in shambles - it's a sister company that had pretty much been forgotten by it's umbrella company, even though it has been in business for 12 years. I agreed to a salary and receive monthly commission based on the company's performance. The commission scale is progressive and was set when I started and hasn't changed.
We just finished Q3 and our September sales were the highest in the company's history. It was also the highest quarter in terms of revenue for this company. We have 2 full-time reps and a CSR now, and we will be opening two sister companies in January (both primarily e-commerce), with 2 more reps and 2 more CSRs.
When I agreed to this position and negotiated salary, I knew the state of the company and knew the potential it had. They set my quotas low and made my commissions high to encourage growth - as I mentioned the company was neglected. I will exceed my yearly quota by the end of this month...
My problem is that I will have an annual review with our CEO come December and I have a feeling everything will change as far as commissions/bonuses for exceeding quota are concerned. Honestly, I know they are too low right now. However, if January of 2009 exceeds January 2008 revenue by 25%, I want to receive my fair share of the increased revenue. I have a feeling that instead of getting a nice bonus for doing $70,000 in one month, they'll raise that number to $90,000 and pay me the same bonus. Also, with the new sister stores opening (shared idea/analysis/requirement processes with the Director), I have no idea if they'll pay me more on the revenue of these companies.
So, has anyone met with a consultant/coach/negotiator regarding Annual Review negotiation? I can get 1.5 hours of face-time with a professional for ~$300. I have no problem paying this if it helps, any recommendations?
Keep in mind that I was not really a "sales professional" when I took this position. I had trained and managed a couple employees in a previous position and met my CEO through that position. He hired me more on potential then experience. I just don't want to get the shaft in terms of pay, I have exceeded their expectations in every form and I know they want to keep me. Any other things I should expect/do/prepare for? 10/1/2008 5:22:54 PM |
Seotaji All American 34244 Posts user info edit post |
be prepared to stand your ground. make sure they know it was YOU who made this happen and not them. be nice, but be firm.
consultants are nice, but are they going to come in with you? then they are no help. 10/1/2008 6:01:22 PM |
mellocj All American 1872 Posts user info edit post |
Go start your own e-commerce company and then keep all of the profit for yourself. Its at least a bargaining chip if you mention to your boss that you are considering it. 10/25/2008 1:02:11 PM |
Sonia All American 14028 Posts user info edit post |
Except that your boss may be like, "Have fun and good luck. It was nice working with you." I wouldn't even hint at an ultimatum if I weren't willing to go either way.
Document everything you've done to improve your bargaining situation. If you have access to previous fiscal years' numbers that should also help. Also go in knowing what other kinds of compensation you'd be willing to accept if they can't offer you money. 10/25/2008 7:33:35 PM |
mellocj All American 1872 Posts user info edit post |
^ so, why not? it sounds like this guy has the knowledge and experience to run his own ecommerce site. 10/26/2008 5:43:53 PM |
sd2nc All American 9963 Posts user info edit post |
^Yeah, not really an option. Our market is very niche and it wouldn't be worth it going alone and they know this. I can't burn any bridges either as everyone in our industry is very tight.
^^ I have access to all numbers and the CEO/Director knows what has been going on. I made this thread on 10/1 and we have had our three biggest weeks in company history back to back to back since then.
They have been throwing hints at what I'll make next year but nothing has been set yet. I know a contact with our biggest client talked to my CEO about bringing me on as a Business Dev. Manager and that it would pay at least $100k. The contact and the CEO go way back, so at least he knows what I'm worth now... it'll be interesting.... 10/27/2008 10:54:44 AM |
Seotaji All American 34244 Posts user info edit post |
at least 100, more like $150k. 10/27/2008 6:04:19 PM |
sd2nc All American 9963 Posts user info edit post |
Yeah, the $100k is pretty much standard base plus bonuses/commission for that position. Only thing I'm worried about now is that they'll switch my bonus plan next year and make it unattainable. They set a quota for me each month and my commissions equal my salary for the month once I hit it. Both commissions and salary double if I hit quota x 1.35.... I'm at quota x 1.5 with four days left this month, haha. 10/27/2008 6:37:04 PM |
Noen All American 31346 Posts user info edit post |
I don't think raising your quotas is unfair at all.
As the company grows, your ability to sell should increase as well in proportion with that growth. So if the company expects 15% growth for the next fiscal year, your quota's should like go up 15%.
However the BONUSES and base pay should ALSO increase in line with growth. 10/27/2008 10:04:11 PM |