Mike Andes explains his profit-sharing approach for a lawncare business: field team members receive 10% of profits quarterly with strict punctuality penalties (losing half after one late incident, the remainder after a second). He also outlines pay for a general manager (GM) varying from ~5% up to 35% of profits depending on when they joined and the business’s growth stage.
I give 10% of profits on a quarterly basis to my team members out in the field. They lose half of their profit sharing if they're late one time. If they do it again, they lose the other half. And yes, there have been times where someone's in late, like a minute or two, and unfortunately, they lose half their profit sharing. Anywhere from 5 to 35% of all my profits are going to go to my general manager. Joined the business when it first got started, and there's not a lot of revenue, not a lot of profits. I'm going to give them a much higher percentage of profits. If I've already started growing the business, it's already super profitable. I might only give them 5 or 10% of profit sharing. It's already gone through a lot of the pains of growth, and it's profitable from day one.
