1. Salary Negotiation: Yes You Can!
Mike Millard
Director of Research
Austin Ventures
18 April 2012

2. Agenda
i. Background
ii. The Value Mindset
iii.What is the hiring manager thinking?
iv. Process
i. Do your homework!
ii. What’s on the table
iii. The offer range
iv. Closing the negotiation
v. Mike’s Tips
vi. Q&A
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3. Background
I’ve had a few opportunities to negotiate salary…
Manager Analyst Strategy Venture Capital
IN MN CO TX
1990 1991 1995 1997 1999 2001 2003 2008+
Fundraiser Grad Assistant Strategy Technology Commercialization
IL IL TX TX
…as well a hire a few librarians along the way.
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4. The Value Mindset
Specialized
MBA Thinking Part 1
Skills
• Pre MBA Salary: $35K
• Post MBA Salary: $75K
• MBA cost: $30K
• Return $: $40K
• ROI*: 33%
Market Masters
Demand Value Degree MBA Thinking Part 2
• Have student loans to pay
• Opportunity cost of not working
for 2 years
Confidence
Page 4 Notes: Return on Investment - ROI = [(Payback - Investment)/Investment)]*100

5. What is the hiring manager thinking?
I want to find reasons
to hire this person.
Has this person done
their homework? Can this person
work with the team?
I have a million other
things to get done. I wonder how the
negotiations will go?
I want to fill this Can I work with this person?
position ASAP.
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6. Process: Do your homework!
Company Hiring Position
• Revenue/EBITDA; # of employees • Exact responsibilities
• Product or service offerings • Comparable positions
• Segments/Divisions • Scale and scope of job
• Structure/Culture/Raises • Advancement paths
• Locations • How long has the job been open
• History and current news run • Desired fill date
• 10K, 10Q • Previous people in job (where are they now)
• Website – know the name of the CEO • Reporting structure
• Review open positions • Budget allocation for department/unit
• Vault.com and LinkedIn
Market Competitors
• Size • Competitive landscape
• Growth • Key players
• Key technologies • Market leaders
• Dynamics and trends • Positions available at other companies
• Value chain or network • Mergers and acquisitions
• Barriers to entry • Market share of competitors relative to co.
• Key Success Factors • Competing product offerings
• Deltas (what’s changing)
• Geographic differences
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7. Process: What’s on the table?
What’s on the table
• Salary
• Bonus
• Travel
• Benefits
• Parking
• Gym memberships
• Lockers
Everything! • Vacation days
• Personal days
• Conference attendance
• Professional development
• Start date
• Vacation accrual
• Options
• Vesting schedule
• Certifications
• Community Days
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8. Process: The Offer Range*
You
$40K Walk Away Value** What’s on the table Opening Value $60K
Hiring manager
$60K Walk Away Value** What’s on the table Opening Value $40K
Notes: *Offer Range: Adapted from Practical Negotiating: Tools, Tactics and
Page 8 Techniques by Tom Gosselin
** Walk away value is an unacceptable offer

9. Process: Closing the Negotiation
1. Thank them for your time.
2. Inquire about process and next steps.
3. Set expectation timeline.
4. Get it in writing. Email is good - signed letter is better.
5. Send thank you email detailing next steps and timeline ASAP.
6. Send handwritten note the next day.
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10. Mike’s Tips
If the hiring manager asks… You might say…
• “What is your current salary?” • “My salary from my previous job correlates
to the value it was worth to that employer.
Let’s find a fair market value for this
position.”
• “How much do you want to make?” • “I’d like to make the fair market value for
my skills. Would you like to make an
offer?”
• “There is nothing I can do. The salary is • “I understand. Let’s talk about vacation
posted. It is what it is.” days, professional development, benefits,
etc. to come to a fair market value for my
skills.”
• “Can you tell me a range of where you • “I’m not sure I have enough insight at this
think this position is worth.” time into your organization to tell you a
range. Can you provide some guidance
based on my skill sets?”
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11. Resources
1. Smart Questions: The Essential Strategy for Successful Managers
by Dorothy Leeds
2. Practical Negotiating: Tools, Tactics and Techniques by Tom
Gosselin
3. Getting to Yes: Negotiating Agreement Without Giving In by Roger
Fisher and William Ury
4. The Seven Triggers to Yes by Russell H. Hill
5. www.vault.com
6. www.linkedin.com
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12. Q&A
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