Hi All-
I have been working....struggling on an excel sheet to determine the commission split among 2 partners on a per deal basis which would include the reimbursement from Partner A to Partner B for the acquisition of the company. (Here is the link to my XLS sheet. )
Here are a few things to assume:
- Partner A to purchase company from revenues generated and pay 10% to Partner B until $250K is paid to partner B and it goes away.
- 10% of gross profit will automatically go towards expenses/overhead
- Assume $100k/deal in gross profit
Commission Split - Scenario 1
- From 0 to $350k of gross profit, the commission split would be 35% to Partner A and 65% for Partner B
- From $350k to $500k of gross profit, the split would be 30% to Partner A and 70% for Partner B
- Anything above $500K of gross profit, the split would be 25% to Partner A and 75% for Partner B
Scenario 2:
- In this scenario, we are introducing an agent to a deal.
- From 0 to $350k of company gross profit, the commission split would be 35% to Partner A, 20% for Partner B, and 45% to Agent C. When Agent C reaches $350K of gross revenue towards company, the split would be 35% to Partner A, 15% for Partner B, and 50% to Agent C.
- From $350k to $500k of company gross profit, the commission split would be 30% to Partner A, 25% for Partner B, and 45% to Agent C. When Agent C reaches $350K of gross revenue towards company, the split would be 30% to Partner A, 20% for Partner B, and 50% to Agent C.
- Anything above $500K of gross profit of company gross profit, the commission split would be 25% to Partner A, 30% for Partner B, and 45% to Agent C. When Agent C reaches $350K of gross revenue towards company, the split would be 25% to Partner A, 25% for Partner B, and 50% to Agent C. When Agent C reaches $500K of gross revenue towards company, the split would be 25% to Partner A, 20% for Partner B, and 55% to Agent C.
THANK YOU for all your help.
I have been working....struggling on an excel sheet to determine the commission split among 2 partners on a per deal basis which would include the reimbursement from Partner A to Partner B for the acquisition of the company. (Here is the link to my XLS sheet. )
Here are a few things to assume:
- Partner A to purchase company from revenues generated and pay 10% to Partner B until $250K is paid to partner B and it goes away.
- 10% of gross profit will automatically go towards expenses/overhead
- Assume $100k/deal in gross profit
Commission Split - Scenario 1
- From 0 to $350k of gross profit, the commission split would be 35% to Partner A and 65% for Partner B
- From $350k to $500k of gross profit, the split would be 30% to Partner A and 70% for Partner B
- Anything above $500K of gross profit, the split would be 25% to Partner A and 75% for Partner B
Scenario 2:
- In this scenario, we are introducing an agent to a deal.
- From 0 to $350k of company gross profit, the commission split would be 35% to Partner A, 20% for Partner B, and 45% to Agent C. When Agent C reaches $350K of gross revenue towards company, the split would be 35% to Partner A, 15% for Partner B, and 50% to Agent C.
- From $350k to $500k of company gross profit, the commission split would be 30% to Partner A, 25% for Partner B, and 45% to Agent C. When Agent C reaches $350K of gross revenue towards company, the split would be 30% to Partner A, 20% for Partner B, and 50% to Agent C.
- Anything above $500K of gross profit of company gross profit, the commission split would be 25% to Partner A, 30% for Partner B, and 45% to Agent C. When Agent C reaches $350K of gross revenue towards company, the split would be 25% to Partner A, 25% for Partner B, and 50% to Agent C. When Agent C reaches $500K of gross revenue towards company, the split would be 25% to Partner A, 20% for Partner B, and 55% to Agent C.
THANK YOU for all your help.
