RevsUp, a leading North American sales recruitment firm, today announced a groundbreaking pricing model where companies pay a fee after their hires have generated revenue for the company.
The new model contains three key components – each unprecedented in the space.
- No more antiquated “percentage-of-salary” fee structure.
- Instead, companies will evaluate their hires for 6 full months, then pay a Success Fee based on the hire’s financial performance.
- 180-day payment terms.
Six months after the hire’s start date, the company can choose to pay 5% of the salesperson’s revenue generated over that time, or a flat Success Fee – whichever figure is lower.
“Since 2020, 70% of our placements have exceeded their quota in their first 12 months in the role”
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Mark DeChant is RevsUp’s president and founder. “The number one reason CEOs don’t work with sales recruiting firms is that they have zero certainty their investment will pay off. They shell out $30,000 and hope for the best. Starting today, we are giving companies a full 6 months to evaluate each hire. If our candidates don’t produce, our clients don’t pay.”
The historical performance of the firm’s hires gives RevsUp the confidence to make such a bold offer. “Since 2020, 70% of our placements have exceeded their quota in their first 12 months in the role,” says Derek Wright, the company’s A.I. Practice Director.
“A Salesforce study found that just 43% of reps hit quota last year, and it’s a reminder of one thing: evaluating sales talent is no easy task. We are willing to bet our own revenue on our ability to source and evaluate elite sales talent.”
Nearly every recruiting firm charges as its fee a percentage of the employee’s base salary, a computation DeChant describes as arbitrary and archaic. Plus, firms typically require full payment while the new employee is still being onboarded.
RevsUp has eliminated the percentage-of-base-salary scheme and will now collect the majority of its fee after the employee has achieved 90-day and 180-day milestones. This plan also provides CFOs with significant cash-flow relief.
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