Protecting Your Full Fee In Sales Placements

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May 14, 2012

Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.

Meet Jeff at the upcoming Fordyce Forum in June. Register now  to become eligible for a free, private, confidential one-on-one consultation with Jeff at the conference. Consultations are limited, and will be scheduled on a first-come, first-served basis, with Jeff arranging the time directly with you.

What Client Says:

“We hired the candidate at a lower starting salary.”

How Client Pays:

The victim of this is the salesperson placer. Since the candidate’s base rate is the only promised (“guaranteed”) compensation, the client argues that commissions aren’t included in the fee computation.

The variations are endless, ranging from actually paying the candidate less at the beginning (often with a wink and a promise) to excluding the value of perks (up to 40%). For this reason, vigilance plus verbiage is necessary.

Vigilance is your responsibility. Verbiage is mine. Here’s what I recommend:

The estimated gross compensation includes projected commissions, bonuses, incentives, and perquisites. It shall be estimated at not less than the amount earned by the candidate in his last position.

If that scares you, then start placing at a fixed fee.

Otherwise, you’re a visible victim.

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