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
I'm not sure you need an attorney, financial advisor, or an accountant.
In short, you need to determine what is fair to you and the partners.
Without knowing the exact factors you feel are complicating this payout system, it is impossible to give you actionable advice.
For example, why are John, Brian, and Joe all receiving commission on Item C?
Perhaps a simple quarterly profit share agreement is more appropriate? Or, for those not directly involved in the sale, perhaps a flat percentage on items sold and the remaining is split between the sales team members.
I am happy to help, feel free to schedule a call or shoot me a message.
-Shaun
