u/Swami218 wrote (the comment Michael replied to):
It’s certainly a lot of money. But if that is what is standing between someone doing what they want or not, it could be enough value.
u/michaelnovati replied · ★ FEATURED
Yeah I agree with this but I'm really bias because of Formation so this is obviously a skewed position that I have.
Like I personally worked with someone to increase an initial offer by $200K first year TC and how much is that worth?
It's a really odd industry compared to most because the amounts of money thrown around a "typical" FAANG senior, staff, etc... engineer is not just like 8% per year compounded, but like 5X a junior engineer.
The amount of work on my side it takes to help that super senior person negotiate is less time, but a lot more extremely nuanced expertise that took years of exposure and observation to build.
It's a lot more natural to try to associate the cost with "what services am I getting, how many sessions, how many projects", etc...
**It's a lot harder to think of paying as an investment that will hopefully offer a return. Increasing comp by $200K first year TC is not remotely common, but for a person that "invested" $10K and got back $200K in 6 months, that's like investing in Facebook at the IPO and waiting 10 years to make that much.**
Like you can't go back and imagine an alternate future where you did something else instead to compare to so it's hard to even know what you would have done, but it was at least financially positive choice.