Revenue Frameworks: Compensation Structures

Within the Sales Independence framework, compensation is structured intentionally. There is no single “correct” model — only structures that align better or worse with a business’s revenue profile, operating maturity, and risk tolerance.

Our role is to help you understand how each framework works mechanically, where it fits best, and how to select — or negotiate — a structure that aligns with your objectives and constraints.

• Retainer-Only Model
  Used for predictable, fixed monthly compensation with no performance participation. You are paid the same amount each month regardless of sales outcomes. This structure is typically recommended for pre-revenue or lower-revenue businesses (generally under $35,000 per month), with the option to revisit and renegotiate once performance stabilizes.
• Performance-Only Model
  Compensation is tied entirely to sales performance, with no guaranteed income. Upside and downside are directly linked to the results of the sales function. This model is generally reserved for businesses already operating at high, consistent revenue levels (typically $250,000+ per month), where volatility is lower and systems are established.
• Hybrid Model (Base + Performance)
  Combines a reduced base retainer with performance participation. The base component provides stability, while the performance component aligns incentives with outcomes. This model is commonly used with businesses generating between $50,000 and $200,000 per month and offers a balance between risk, predictability, and alignment.

Selection of a compensation framework is contextual. We guide this decision based on revenue maturity, operational leverage, sales complexity, and your personal risk preferences — not projections or promises.