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payment structure advise

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  • 30-06-2013 2:15pm
    #1
    Registered Users Posts: 2


    i would really appreciate some independent advise on a fair pay structure in this scenario

    john starts up a company. He produces an item and sells it online. he discovers he can buy the item from a supplier and then resell it making 100% profit after costs.
    this turns out to be a better option than making the item himself. John sells the item online with moderate success but hates this aspect of what he does and much prefers
    internet marketing. John asks his parents, would they be interested in making it a family business, they could start with generating leads and selling the item online.
    Johns parents both experiened professionals start work on sales and lead generation. Johns parents prove to be prolific sellers and sell a large amount of product.
    The item costs 100e per sale and is sold for 200e generating 100e per sale.

    john spends 10 hours a week administrating the sales generated by his parents. john spends a further 30 hours on business development and internet marketing.
    johns parents spend 50 hours a week generating sales, doing the accounts and helping with business decisions and strategy etc.

    the monthly profit breakdown is as follows....
    johns parents sales generate 8,000e profit per month.
    john generates 2,000 profit per month from internet marketing and business development.
    so combined profit is 10,000e per month.

    what is the fairest way to pay everyone?


Comments

  • Banned (with Prison Access) Posts: 8,486 ✭✭✭miju


    3k each if you want to be fair. I think its quite obvious that without Johns parents John wouldnt be getting a sniff at the other 8k in revenue at this time


  • Registered Users Posts: 2 jackie369


    thanks for your input.


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