Sunday, September 26, 2010

One Way to Negotiate Salaries.

There are different ways salaries are negotiated. Some companies give you salaries based on the salary at the previous company. Some people can negotiate salaries pretty much independently of their salary history. They go by market; if the market is hot and their demand is high the will ask for a big salary. If they cannot get their base salary high enough they will try to get a big bonus or some other perks such as stock options. But few people negotiate their salaries the following way. It can definitely earn them more, so try it. I definitely will at the next job offer I get.

The idea is to ask for a very low salary in the beginning, lets say just 1 c. Then take double that in the next month, 2 c. This will make HR people very happy although a bit surprised. They are not technical people so they will not dig deeper. So your paycheck will look like :

  1. 1 c First month
  2. 2 c Second month
  3. 4 c Third month
  4. 8 c Fourth month
  5. 16 c Fifth month
  6. 32 c Sixth month
  7. 64 c Seventh month
  8. $1.28 Eighth month
  9. $2.56 Ninth month
  10. $5 Tenth month (Rounding up)
  11. $10 Elventh month (Rounding up)
  12. $20 Twelfth month
So at the end of one year you will be getting a $20 paycheck. But it will be quite different in another year, you will make pretty fat paycheck at the level with the company's CEO, and in another year you will sitting on pretty good fortune and may not have to work anymore. You probably cannot work there anyway as that company will most likely be bankrupt.