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Entrepreneurship: What's the best way to implement a profit sharing structure in a small agency?
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Dan Martell, SaaS Business Coach, Investor, Founder of Clarity answered:

The key is to keep it simple at first and focus on rewarding the right behaviour.

You can start by setting a gross revenue goal for the quarter, share with the team, and tell them if we hit that, that everyone will get a bonus.

So in some sense, it's not about profit sharing at first. The reason for this is, profit can be manipulated and nothing most employees do can effect this.

Also, you may not want to share profit with all your employees.

So here's my suggestions for thinking through this
- who's going to participate (founders, senior staff, everyone)
- set a goal that you can all contribute towards. (Customer satisfaction, Gross Rebenue, etc)
- Get a baseline for the current number (what was the gross Rebenue for the previous quarter)
- Start simple and small and see if it impacts performance of the team. If it doesn't, then it's not working.

Pro tip: Report on the goal as frequently as you can so everyone knows as soon as possible if you're on track or not.

Hope that helps.

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