Hello everyone.
Currently I am an account manager. Previously I was operations/sales manager for a transportation services business when I was laid off due to significant downsizing. I only took my current job to create a positive savings rate, in lieu of being unemployed. It was temp to hire, and I meant for it to be short term while I looked for more fulfilling employment. I've been there 17 months now. My job is very easy, and 1.5 miles from my home. I earn about $42k/yr + medical benefits. My wife earned $46k last year and will earn $48k this year. She has no medical benefits. We currently live on less than my income and save the rest. (about 55% savings rate) At the moment we have sufficient emergency funds, and can cover all normal expenses on my wife's earnings easily.
On to my new job prospect.
My situation is unique. I currently work for a Canadian company that has a single branch in the US just north of Seattle. My new job would be for one of their direct competitors, which also happens to be Canadian based, leading the sales push into the Seattle market. The position I am currently fielding an offer from is for an outside sales position that is heavily skewed to commission earning.
I am currently in the offer negotiation state for the new job. I was actively applying for account management positions, to transition from my current position of underemployment when this opportunity came up. I have been actively looking for a new job for several months, and have been in touch with a recruiting company that was marketing my resume.
On Wednesday the 11th, my recruiter called me and asked if I was interested. I was. I was phone screened on Monday the 16th with the general manager and had a good positive conversation and scheduled an in person interview for Friday the 20th. On Wednesday the 18th at noon I was called by their sales trainer and we discussed my potential and previous experience. That same night the owner of the business called me at 9:30pm! to ask me a few questions. We chatted for 30 minutes and he was pleased I was meeting with the general manager on Friday. So Friday the 20th, I drove 120 miles to their head office and interviewed and had a plant/operations tour with the general manager. It started at noon. I left at 4:30pm! With out saying it directly, he told me the job was in my hands. He told me would call me on Monday.
He called me tonight at 7:45pm and he offered me the job and the negotiation began. It's only been 11 days from start to finish. Only 8 days since the first time I've talked to him.
Here are the details on initial offer. All verbal, over the phone.
100% remote, work from home, create my own schedule, in charge of the direction of my employment.
Base salary is $3k/mo for first 6 months.
Drops to $2k/mo for next 6 months.
Drops to $1k/mo from year 2 onward.
No car/gas/cellphone expenses. The $1k base is meant to cover expenses, while commissions are your income. This is the same for all of their sales reps, and everyone is paid on the same structure, no bullshit favorites played.
No medical benefits mentioned.
No mention of paid time off/holidays.
SO base for the first year is $30k, dropping to $12k/yr.
Commission is paid at 10% for all sales, from day one. This is aggressive for the industry. Commissions are withheld for the first 6 months, to protect their interests, but are paid at the 6 month point when longevity has been established.
Expected sales in year one are $500k (10% commissions), leading to $80k earnings. Aggressive sales growth could lead to $1m in sales, or a $130k earning potential for year one.
I will be selling their product to the Seattle market, but because I have dual citizenship with Canada, I can have free range of any Canadian customers I can access as I have the right to work in Canada as well.
Their selling points.
They have been in business since 1981 and have grown and been successful every year. They currently have 8 sales reps in Canada and no sales rep has ever left their company after taking the position, other than to retire.
They sold 12 million last year. They have 8 reps. 5 at about $1m in sales ($100k earnings), a couple at $1.5m, and couple scratching $2m. Their reps earn no less than $100k. Earning potential is high.
They are a growing business, progressively styled to the younger generation, and very accessible for help and concerns. It is a family business with about 90 employees. The general manager is 32 and the owners son. I am 30, and relate quite well to him. They are a sales motivated business, and so the company revolves around the sales agents in terms of support and mentorship.
They have TOP OF THE LINE equipment. Product quality does not vary from excellent. Product is consistently exactly the same without variation. The first off the line is exactly the same as the 100,000th without exception. I can sell the best product offered in the industry.
Their concerns
I am new into the outside sales game. I have experience with it in my previous employers, and have an applicable education (international business / economics) but I'm not a guarantee. They have to pay the recruiter 20% of my initial base salary. They have to commit time and energy to train me in their product specialties.
My concerns: They don't currently have a presence in the US, and thus there will be some logistical struggles/kinks to smooth out. I'm very familiar with this as I am directly involved with the logistical side of their competitor, who is already selling in the US. The onus is on me to bust my ass and make sales. If I can't make sales, I won't be employed long.
My position, very unique and opportunistic
I currently work for their competitor, which has overlapping business. Some of it will be known to my new employer, but the majority of it will not be. If I can convert even a portion of that business, it will directly impact my ability to jumpstart my earnings and prove my worth. My employer sells a volume equal to 100% of my future employers volume of a particular product. I also have direct access to potential business in a new product line my future employer intends to start selling within 4 months.
SO, I countered.
I mentioned that I am bringing access to directly related business, access to new product/market sales, and even more business in terms of accounts that may purchase their other products that my current employer doesn't offer. The industries are similar and so their products will suit many potential customers. I asked for the base for the first 6 months to be increased.
He suggested a bonus structure if certain sales quotas were met. (He has to pay 20% to the recruiter on my initial base)
I told him that my current employer pays my full medical insurance premium including a $400 stipend to apply to my wife's premium, which covers her entirely. I mentioned the details of my plan.
He admitted he hadn't considered that, as his operations are different in Canada, but that he would look into it.
I asked about paid time off. I'm currently allowed 15 days vacation, 7 sick days, 9 paid holidays plus my birthday.
He told me this is a very flexible element, as sales reps work when they want to in order to create sales. He suggested 2wks off in the first year would be reasonable, with 3wks in the second year.
He told me he would take the time to write the offer down, mull over his thoughts, and get back to me tomorrow.
Are there any other items or points that I should consider? Does anyone have any advice for me?
