Questions

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.

Do these people have any shares in the business or are they contractors only?

If they are contractors and will remain so, I think you as the company owner have control over how the commissions are split. I'm not a lawyer so I can't say for sure and this is not legal advice.

I would start with a transparent conversation with them and explain the reasons why you need to do this. Get their input and make them feel like they are contributing to the solution.

Yes, you'll need an attorney to draft up all of the contract/employment agreements but first you need to narrow down a few options that will work for your business.


Answered 3 years ago

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