Bigger Sign-On Bonus? Win the Recruit Anyway

I was in a conversation earlier today with somebody. They're losing their $25 million producer to a $75,000 sign-on bonus. If you run a branch, you've had that call, and you know the panic that shows up right behind it. I have people every week that win opportunities, no sign-on bonus, competing against sign-on. One of those branch managers just won a producer that was getting a $240,000 sign-on bonus, and just won them with none.

Here's how to compete with sign-on bonus offers the way they do, starting long before anyone talks numbers.

1. Know what a bonus brings in

Sign-on bonuses establish an environment for mercenaries. It's like how you bring someone in a lot of times is how they exit. They come in on a sign-on bonus, they'll exit on a sign-on bonus. That cuts both ways, so it's worth remembering before you match anything. If you're only leaning on money up front, people will leave for money. I don't want a three year run with you then to have you leave and look at me as that next springboard to get your big sign on bonus. If someone comes to you for a sign-on bonus, they could leave for a sign-on bonus. But if someone comes to you for your unicorn value stack, they can't get that anywhere else.

2. Do the math with them

A recruit looking at a big number usually hasn't broken it down yet, and you can help them see it clearly without a word about the other company. It's never the sign-on bonus, that's not the number. You're going to get taxed around 40% on that number. Then divide it by the clawback months. It's the equivalent of about two-thirds of one transaction each month. Now we're operating in a completely different frame. Then talk about who owns the business once the money lands. If someone gives you a big sign on bonus upfront, they're buying you and they're buying your business. You no longer own it, they own it.

3. Find the dream under the bonus

I never make an offer to someone unless I know where they want to go over the next 10 years, professionally and personally. A simple way to ask the dream question would be, what do you want to accomplish over the next 10 years through the mortgage industry? There is a professional and a personal version, and I do ask them as separate questions. Most recruits have never had a leader ask them that, so give them room to think. Almost always, like 99.9% of the time, people go, I don't know, great question, haven't thought about it.

I can either pursue him through the lens of 300 K, or I can pursue him through the lens of legacy, growing his family. There's way more energy there than just income. I might be able to win him on a sign-on bonus on income, but I'll be able to keep him forever if I attract him to my team through the lens of his dream.

4. Connect before you make an offer

I will not make an offer if I can't articulate the dream. To me, it's taboo because I will potentially lose in the offer somewhere. Could be on a sign-on bonus, someone gave you more. Could be basis points, someone gave you more, right? I learned that one the hard way. The recruit's brain, left brain is logic, right brain is emotion. I got to the finish line, and this other company was giving me $5,000 more as a sign-on bonus. We failed. We have not connected emotionally to people enough.

5. Tie your offer to their first win

Most people will be like, you know what, we'll give you a $5,000 sign-on bonus. But I'm saying like, on day one, this is how we want to partner with you. One leader I coach did exactly that with a young producer. This guy's young. He's newly married. And he's like, it's pretty simple. Like I got a $5,000 credit card that drives me nuts. I want to pay that off. And he said, I want to be completely debt free. We're all in on you. This is the first step we want to make. We want to pay off the credit card on day one. We want to write the $5,000 check. We want to celebrate your first win here. He responded immediately, asked for a call by 8 a.m. the next day. The money was small, and it worked because it was his dream with a first step attached.

When the bigger offer is already on the table

Thank the recruit for telling you, skip the counteroffer, and go back to what they want to build. I'm going to build you a franchise that when you leave is worth X. Then walk through the dream, the math, and the first step, in that order, and let them decide. Our goal is to come alongside people and help them accomplish their dream.