Subscribe for 50% off

How to Institute a Profit-Sharing Program

This story appears in the December 2014 issue of Entrepreneur. Subscribe »

You'd think such a gesture of goodwill would be easy to implement and would inspire greatness from your staff. But in my experience, profit-sharing can be a tricky piece of business that requires caution—and a seemingly never-ending list of questions to answer, ranging from what, exactly, you are rewarding (net profit, overall customer service, quality?) to whom you should include (everyone, or just the team that earned it?). Here are the main points to consider.

illustration © Paul Wearing

How much

Cyber Monday Subscription Sale - Unlock this subscriber exclusive article and more for 50% off.

Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 50% off an annual subscription today. Just use code SAVE50 at checkout.

Entrepreneur Editors' Picks