Use the Portfolio Technique to Negotiate a Higher Salary During Your Interview
When you are negotiating your salary, the vague idea of what you are “worth” can seem overwhelming. This portfolio method can help you quantify your value and get the best paycheck.
As personal finance advisor and author Ramit Sethi explains in the video above, the portfolio technique works like this: When a potential employer (or client, if you’re a freelancer) asks what you think your salary or price should be, switch. Say, “Before we get to this, I would like to talk about this plan that I have for your company.” Then, pull out a written document from your portfolio detailing what you think you can bring to the company.
This method is unique for several reasons. First, most other candidates are probably not going to put in so much effort to solve the company’s problems before they start working there. Second, it shows that you already understand the needs of the company. Note: You will need to do your homework to make sure you understand the needs of the company. It’s not a quick way to suddenly get a big paycheck. It takes effort.
Once you’ve laid out your plan, you have tangible value that you can bring to the company. At this point, you have a much stronger negotiating position to name the price. You can name the price range that you will be tied to if you are confident enough, or you can allow your employer to make an offer. Either way, having evidence will greatly facilitate your ability to negotiate.