Question
I've worked with an outsourced team for some time. We develop digital products and sell it online and split the commission. Every product is priced differently and every product has different owners with different percentage of commission. Now, we want to take our partnership to next level and simplify things, but there are few complex questions before we can proceed.
There are 4 partners (ex John, Joe, Brian, Tom).
John - Project Manager - Commission Only
Joe - Product Manager - Commission Only
Brian - Lead Designer - Commission + Salary
Tom - Lead Developer - Commission Only
Example Products
Item A - Earning $50/sale [John (60%), Joe (40%)]
Item B - Earning $25/sale [Brian (60%), Tom (40%)]
Item C - Earning $15/sale [John (30%), Brian (60%), Joe (10%)]
Now what we want, is that every partner should have some percentage in every product so he doesn't feel left out on any product that might sell better than others. Also, some of the partners might also take a salary, so how should we decide what should be the commission with salary?
There are other questions too that need to be answered related to above and I don't know who to consult with, whether it be a financial advisor, an accountant or an attorney.
Please advise.
Answer
Hi,
Your problem is one of corporate structure.
You need to create an organization chart and define the different roles that exist in the business.
You then need to fill in your names to each box.
The different roles may have salaries or commissions attached, likewise, each partner is likely going to have their names appear in the 'board of directors' box but they could also exist as 'licensing partners' outside the structure if they're due revenues from previous work contributed.
Give me a call if you want me to walk you through this process.
Once done, each person will know what roles they play at any given time and what their compensation will be.
Cheers
Dave
