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Calculating Revenue Sharing Model?


Hiya - I own a design studio that is expanding and now using a Sales & Marketing Indie Contractor. My previous agreement with him was to pay on a per-project basis. We have been collaborating on the development of a new division of my company which would involve him being more of an account manager (still acting as an IC) and working with established sales teams to generate revenue through ad sales. This will start with one primary account and hopefully grow quickly to many (ideally & optimistically - but potentially realistic) - So he'll have a fair bit of hands-on work to do in being the liaison between the sales teams & advertisers, help desk/cust. serv. etc. Not necessarily direct sales per se, but a sales roll in helping acquire these new accounts. I'm trying to calculate what our revenue splits should be. I'll have an active roll overall, and we have another designer who is also in on development. Ideas for revenue sharing models welcome!!

if u are using many people to achieve ur goals, then u may use a pro rata basis revenue sharing model which pays each according to his contribution. But this could be very expensive if ur contribution falls in a month. so set a fixed target of business generation for each and urge them to generate this target. this target should cover all ur minimum expenditure. above it u can use a % sharing model.

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