Thanks for the great responses, everyone! In general, I'm not a fan of the idea of using money to incentivise employees. Personally, I'm not incentivised by the idea of commissions on sales, etc.
That said, when a space is looking to hire a really good CM, and is in a market with a high cost of living, an alternative compensation plan can be the difference between being able to get the really good CM and not being able to. At NextSpace, we considered offering a percentage of revenue from paying events as a way to allow employees additional income and compensate them for the many late nights and weekends they were working in event heavy times. We ultimately decided not to do this because in figuring it out we decided it took us away from our goal of being for the members in everything we did. I agree with Alex that the best case would be to offer commission based on length of membership. For coworking, this seems to be the purest form of compensation that aligns with the value of creating lasting relationships amongst people. This is also the most confusing to figure out! Below is what we are leaning toward: Monthly bonus, based on % of roral revenue: Revenue % Bonus % Monthly $ (based on 38,000mo) 70% 2 $53, $636 year 75% 5 $143, $1700 year etc Quarterly bonus, based on quarterly profits (profit sharing model): Bonus % Profit % (Based on quarterly average $15,900) 1 $159 2 $318 3 $477 4 $636 5 $795 6 $954 Thanks again for your thoughts! Iris On Wednesday, March 22, 2017 at 2:16:58 PM UTC-7, Alex Hillman wrote: > > To be clear, the problem with the incentive to "get more members" is that > it puts the community staff in the position to tell someone they KNOW isn't > a good fit that they should join anyway. This isn't just a vague "concern" > it's a *leading problem among spaces and staff that I have advised.* > > That's why I think it's so important to tie incentives to retention rather > than directly to sales. > > Alex > > > On Mar 22, 2017, 5:06 PM -0400, Bernhard Mehl <b...@getkisi.com > <javascript:>>, wrote: > > I think generally a good idea IF you can get a better quality community > manager (e.g. former entrepreneur, etc) for the job - similar to the > comment Alex Linsker had that where he sees it mostly with partners, so the > goal is to have a high end community manager :) > > However those I'd rather incentivize based on business goals. To hit the > business goals one way is to get on average more members, etc > > On Wednesday, March 22, 2017 at 4:43:42 AM UTC-4, Alex Linsker wrote: >> >> I agree with Alex Hillman, if I offered a commission I would want it to >> pay more if someone stays a member for 10 years than for 10 months. >> >> I don't see any problem with cash incentive to get members especially if >> a place is already paying cash for someone to do other things that members >> could do -- if it actually incentivizes. >> >> Other than business partners who are cofounders or buy the business, I >> haven't heard of commissions working for coworking -- the $ per client is >> usually so small compared to traditional leasing, unless you have a bigger >> company, in which case a broker prefers a prepaid commission on a 5 year >> lease. Do any coworking places do 3 or 5 year leases, where the client and >> coworking venue is locked into an agreement? >> >> -- > Visit this forum on the web at http://discuss.coworking.com > --- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to coworking+...@googlegroups.com <javascript:>. > For more options, visit https://groups.google.com/d/optout. > > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to coworking+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/d/optout.
