Performance-Based Profit Sharing for Growth

This profit-sharing plan is built for businesses focused on growth and expansion. It rewards employees when the company hits key performance targets, aligning team effort with bottom-line results. By sharing profits tied to business success, this plan boosts motivation, accountability, and buy-in across the organization—helping you scale faster with a committed, goal-driven team behind you.

Some high-level callouts:

• Incentivizes performance: Rewards employees only when the business grows, ensuring alignment with company goals.
• Supports scalability: Motivates teams to hit key milestones that drive expansion, not just maintain the status quo.

This plan follows a quarterly schedule, giving the team a rhythm that’s fast enough to stay connected to their monthly performance, but long enough to chase meaningful goals. It aligns perfectly with your current performance periods and helps the team stay focused throughout the year.

Payouts are calculated based on total company profits, so when the business does better, everyone sees the impact in their bonus. This simple formula builds real buy-in and reinforces a shared commitment to the company’s bottom line.

The plan is triggered by two performance gates:

• Primary Trigger: Gross Revenue, with seasonal targets tailored to your business’s ebbs and flows. This ensures that employees focus on what’s coming through the door without being penalized by seasonal shifts.
• Secondary Trigger: Net Profit, also with seasonal targets. After hitting revenue goals, employees are encouraged to think about smart spending, cost controls, and overall profitability.
  

Once both triggers are met, 20% of total profits is allocated into a bonus pool for the quarter. This amount is shared equally among participants, which encourages collaboration, shared accountability, and peer mentorship—especially important as the team grows.

To keep the team aligned with strategic goals, the plan also includes two clear milestones:

• At least 15 new product installs
• At least 50 jobs completed
  

These act as guiding benchmarks for the team’s effort, helping prioritize the types of work that contribute most to sustainable growth.

Bonuses are paid out within 30 days of each quarter’s close, reinforcing the connection between strong performance and timely reward—keeping momentum high and engagement strong.

This plan is ideal for owners of growing service-based businesses who want to scale quickly while keeping their team focused, motivated, and aligned with business outcomes. It’s especially useful for:

• Small teams looking to grow fast, where collaboration and shared accountability are critical to success
• Owners who want to reward execution and results without giving up equity or ownership
• Businesses with seasonal cycles, who need flexible targets that reflect the real rhythms of their work
• Leaders who want a simple, transparent way to share profits that ties bonuses directly to revenue and bottom-line growth
• Owners building a performance-first culture, where every job, install, and upsell contributes to a shared reward
  

If you want your team to think like business partners and act like growth is personal, this plan gives them the incentive to do exactly that.