A successful and cohesive compensation plan, referral & commission structure, and partner program can dramatically increase profit for a company in a relatively short amount of time. If done right, it can align external channels and increase workforce moral. If done wrong, it can set up employee conflict, legal woes, and competing goals between possible partner referral sources and decrease employee and contractor morale.
Most of our time is spent helping product and service providers in the software, construction, real estate, and health and wellness industries increase profitability, plan for future company growth, and create an optimal exit strategy for the owner(s). Many of these businesses have at least some form of external referral source or partner program that regularly generates clients and leads. Some of them have inherent legal issues that need to be worked out before entering into or creating external partnership and referral source programs. For the purposes of this article, any person or entity you’d need to provide a 1099 for if you pay them, pay a fee to via credit card for referrals, and not pay employee compensation to is considered an external source. For those that do have legal conflicts, we frequently work with a business’s attorney specializing in this area when creating a program.
The Power of a Successful Compensation, Commission, Referral, and Partner Plan is the first article in our Cash Flow Series. To gain access to this article and the rest of our library, please provide your name and email address below.
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