Recruiting negotiations often breakdown when compensation is discussed. It only makes sense that what you’re offering the recruiting prospect should be “priced” to reflect a fair market value. How do you know if your compensation package is reasonably priced? According to marketing expert Harry Beckwith, you should measure how many people show price resistance. If no one complains about your price, it’s too low. If almost everyone complains, it’s too high. How much resistance tells you your price is right? About 20% About 10% of people will complain about any price. Another 10% either have a preconceived price in mind or mistrust you because they think all prices are overstated. When pricing complaints start to exceed 25%, it’s time to scale back pricing. Here is a simple rule of thumb for recruiting: If more than 25% of your recruiting negotiations fall apart when you’re negotiating compensation, adjustments need to be made. Either your value proposition needs to be modified (offer more of what the recruiting prospect finds valuable) or your compensation package needs to be sweetened. Trying to find recruiting prospects who will overpay for your services is not a winning formula.