Kenyanese
Well-Known Member
Deal makes economic sense only if your earnings are relatively static at $2K. If they are growing from month to month, you may need to check the estimated growth in the next 12 months. Let’s say you are growing at 15% per month. How much total income will you have made in the next 12 months?
At 15% monthly growth from a base of $2K, your total income for the next 12months will be well over $65K,and this company will make $13K which is about twice your signing in bonus.
At a modest and perhaps more realistic 5% monthly growth, your total income over the next 12 months will be approximately $33K,and they get $6,685.
So here’s your assignment;
Work out your monthly growth in income for the last 12 months. Don’t average, just look at the actual rates of growth. Then factor out the lucky months when you enjoyed crazy growth (we all have those). Now you can average. That’s your past. It’s by no means guarantee that you will replicate that in the co img 12 months but it’s a good indicator.
What do you intend to do differently this year? If nothing much, then your past growth,factoring out lucky months, is a very good indicator of your future growth.
If your growth rate is above 5% or expected to be above 5% for a better part of the next 12 months, I’d suggest you walk away from the offer because you will pay them much more than the $7K.
At 15% monthly growth from a base of $2K, your total income for the next 12months will be well over $65K,and this company will make $13K which is about twice your signing in bonus.
At a modest and perhaps more realistic 5% monthly growth, your total income over the next 12 months will be approximately $33K,and they get $6,685.
So here’s your assignment;
Work out your monthly growth in income for the last 12 months. Don’t average, just look at the actual rates of growth. Then factor out the lucky months when you enjoyed crazy growth (we all have those). Now you can average. That’s your past. It’s by no means guarantee that you will replicate that in the co img 12 months but it’s a good indicator.
What do you intend to do differently this year? If nothing much, then your past growth,factoring out lucky months, is a very good indicator of your future growth.
If your growth rate is above 5% or expected to be above 5% for a better part of the next 12 months, I’d suggest you walk away from the offer because you will pay them much more than the $7K.
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