For NFL fans this is an exciting time of year. The NFL holds it’s annual draft this time every year. It brings with it new hope for every NFL team that maybe this player will push you over the top. This year Andrew Luck and RGIII were the first two picks taken, they will soon become multi millionaires. Fans hope that it will help make their team successful this upcoming year. Quite often 1 player can make a huge difference in the way a team plays year over year. But this is a business blog, so what does the draft have to do with your business?
We recently had a sales person come in and apply to be a new rep. (a draft) He was star performer at another company, and different industry. Why did they let him go, cut backs because of the new health care law, (Pharm Rep) they have consolidated territories to save money to comply. The only sticking point was the money. He was making 100k +, and wanted a similar guarantee. We provide a guarantee that will keep you hungry, but also make you want to perform. What to do. Do you stretch what you would normally do for a star? (or reach early in a professional draft?)
We did what any good company would. We compared him to the average money a new employee brought in, and then we raised it 15% based on his experience. For us that means he would bring in about $162,000 in new business this year, not including future residuals. Take into account benefits and training it would cost us about $170,000.00 that first year to have him.
What would you do?
He costs more then best case scenario he would bring in. There is no telling what he would really do, you never really know in sales. But we have our numbers that we can expect. For us, it was a no. We offered him more then the normal base and guarantee. My concerns were that he was using us while he looked for something else, and then would leave. My thoughts were if he really saw an opportunity to make real money with us a lower guarantee would be a challenge. Those are the people I want on my team.
Those first round pick in the NFL can make or break a team for years. You invest millions, based on past performance. But you pay them based on the past, hoping to get better in the future.
What would you have done?