DaDeacs
Dickie Hemric
Coming to this thread for some advice as usually you guys are pretty good about that.
Couple months ago was talking to a NYC based start-up that actively recruited me to join their team. They were not able to provide a compensation plan that met my needs given their current funding so we went our separate ways. Fast forward to last week where we connected again and they wanted to reopen conversations. Spoke with the CEO Saturday and the COO Monday. They have made it very clear I am their top candidate and highly desired.
Yesterday they asked me for "a ballpark range that is acceptable to you from a comp perspective" of which I provided a fairly aggressive one. Received an offer today of the following:
Given current budgets, and the fact that much of the work ahead of us if focused very keenly on closing deals as quickly as possible, I’d like to propose the following compensation structure:
- $xxxk on conversion of one financial services firm to paying customer status; (Nonny: this is slightly more than I'm making now, but it's in NYC vs. VA)
- $xxxk on two conversions;
- $xxxk on three conversions; (Nonny: this is the first level that met the comp range I provided)
- Equity compensation to be agreed post first conversion, subject to negotiation.
First, sounds like they are offering a 100% commission based position. That was never mentioned in previous conversations. Second, I am not sure I completely understand this pay structure. Are they flat commissions or do they turn into a salary? And third, I don't like the equity comment as I would have no leverage in negotiations if I'm already working at the company for however long.
Those are my thoughts. What does everyone else think of this 'offer' by them? What would you guys recommend?
It looks like a 100% commission based structure, no salary - but the equity portion could be a big since it sounds like you are coming on early, but it depends on where you are at in your stage of life. I would assume they will be able to put you on a draw or potentially pay you at the full rate of 1 conversion for 1-2 months so you can make some money off the get go.
My guess is they have low (no?) cash flow and can't pay you until orders come in - if you feel confident enough and you have control over the conversions and it isn't something out of your control, could be a good opportunity. But, thats a tough jump from having a guaranteed salary structure - and you have to be supremely confident in the product/service and the team that they are people you could see building with.
The biggest pro is you wouldn't have to live in Richmond anymore.