Profit sharing with sales person


I am trying to start yet another offshore development company. I have couple of people (onshore) who might be generating leads for us and closing the sales.

Now the point is that these guys are not partners or co-founders. At this point of time they are just finding the clients for us. How do I decide their incentives? Do I give them a cut of the profit or revenue on the deal they get in? I am thinking of providing my sales guys a cut, because right now I am not in position to pay them anything.


asked Jul 27 '11 at 17:02
286 points
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2 Answers


I personally do not believe in "profits" because it is as simple as saying "how long is a piece of string". I would suggest that you work on over all turnover and in-bed it in your final price. this way profits (cost) are figures for you to handle. This way they would know exactly what they are getting regardless of profits.

I know this was not an answer but i would also suggest to think of the expenses they paying. is it your office they are usingm your telephones, etc.

answered Aug 27 '11 at 05:03
21 points


I do not know what is your sales model but I would suggest you to consider finding a strategic partner who will help you with the sales. This approach can help you and your strategic partner to increase the revenue.

answered Jul 27 '11 at 19:11
281 points

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