How to Design a "Pay as You Grow" Profit-Sharing Model.

And why I prefer it over company stock, which bogs your employees down with taxes and can have the inverse effect of de-incentivizing growth.

Hi entrepreneur,   The short and simple explanation for this profit-sharing model is that If your company generates enough money, it will trigger different shares of the profit to be released to your team.   It's not a groundbreaking idea, but the details of how you do it will be the difference between creating a powerful tool that operates on transparency, versus a de-motivating anchor that keeps your employees tied to "the status quo."   Implementing this incentive program is something that we help members of our Founders Board mastermind carefully accomplish with their company all the time, and I decided that it was time to put this tool and knowledge out for free...  So I created the IncentiveWise Planner™, to help you build customized incentive plans that unlock your team's potential, instead of stifling their motivation. I'm sharing this with you today along with an exclusive Founders Board workshop recording, where I take a deep dive into the pieces of a great incentive program and how you can implement this incentive calculator, as well as my approach to each of the steps you need to take to design your custom program, listed below. ⬇️   Step 1:  Establish a Trigger - Minimum Threshold that must be achieved before the payout pool is generated.   Step 2: Determine the share of the Trigger - Percent above the trigger that goes into the incentive pool.   Step 3: Decide WHO is included in the Plan -  Who participates in the pool and who is eligible to receive payouts?   Step 4: Determine the Payout Method - Percent of Wage? Tenure? Is it an Equal Payment for Everyone? Do we need a Hybrid Model?    When you put all these steps together and roll out a rock-solid incentive program that employees can easily calculate, you will see the talent on your team shine. Simply by ensuring your incentive checks three boxes...   Simple, Transparent, and Aligned with Growth.   For this exclusive 60-minute workshop, as well as the specifics of why I prefer profit-sharing over divvying up stock units (especially before they are vested, leaving employees to hold and pay taxes on)… You can access everything, the tool & exclusive Founders Board workshop, by clicking the link here: https://scalable.co/tools/incentive-calculator/   If you have any questions, let me know with a reply.   Happy Scaling, Ryan The Scalable Company, 4330 Gaines Ranch Loop, Suite 120, Austin,TX, 78748, +1 (737) 208-1716 P.S. Want more from us? Whenever you're ready, here are 3 ways we can help you scale your business…without sacrificing your soul in the process:  Download the "$200M Operating System Case Study." This 46-page "manifesto" (and accompanying video) reveals how we're scaling six (6) different businesses simultaneously inside our $200M holding company using the Scalable Operating System™. Get a free copy of my book. If your goal is to own a business that can run and scale without you, then Get Scalable is your playbook.  Work 1-on-1 with me and my team. If you'd like direct, 1-on-1 support systemizing and scaling your business, you can get more information and apply for our Get Scalable Accelerator here: https://scalable.co/get-scalable/    Unsubscribe Manage Preferences