We're setting a fixed margin. 14% (exact number TBD) of all revenue will go into a profit account. And that will be the profit, it can be reinvested into the business only as capital spend.
86% of revenue is what the rest of the team will need to work with. They will be required to spend that 86%, all of it, on team and customer satisfaction (improving the product, improving the service, reducing the price).
They'll primarily be measured on customer satisfaction. All promotions (unless you're in a role that is directly tied to say, online conversion rate), hiring, firing, and ongoing management will be based on metrics around how happy our customers are.
Our profits will increase with volume, because we'll have happy customers.
Note, an analog to this model is very common in the franchising industry. Many franchises take a fixed percentage of revenue as their 'take', but in our case the business 'take' will simply go to a profit account.
We won't do 14% on day one, it will take a little while to get there, but that model will be our overall guidepost.
We're setting a fixed margin. 14% (exact number TBD) of all revenue will go into a profit account. And that will be the profit, it can be reinvested into the business only as capital spend.
86% of revenue is what the rest of the team will need to work with. They will be required to spend that 86%, all of it, on team and customer satisfaction (improving the product, improving the service, reducing the price).
They'll primarily be measured on customer satisfaction. All promotions (unless you're in a role that is directly tied to say, online conversion rate), hiring, firing, and ongoing management will be based on metrics around how happy our customers are.
Our profits will increase with volume, because we'll have happy customers.
Note, an analog to this model is very common in the franchising industry. Many franchises take a fixed percentage of revenue as their 'take', but in our case the business 'take' will simply go to a profit account.
We won't do 14% on day one, it will take a little while to get there, but that model will be our overall guidepost.