If the money is not shared well, people will run away

This article is excerpted from a private night talk at the Huzhou class meeting of Laogao E-commerce Club on May 10, with the content being deleted.

Members of Laogao E-commerce Club: The company needs to recruit supervisors and directors to give dry shares and commissions. Which form is better?

Lao Gao: For middle-level positions, including directors and supervisors, try not to give them shareholding or commissions, unless he is a talented general, which will affect the life and death of your company.

If you don’t share money well, it is easy to split people . There are too many such failure cases, because morality is not worthy of position, giving money beyond his virtue and ability, or allowing a person with inadequate virtue to participate in the distribution of more benefits is a mistake in itself.

If a newly graduated college student gives him a project and gives him 30%, the benefits are enough, but he may have the ability to do this. If he can't do it, then how can he get 30%, so other employees will feel unpleasant.

A member of the club recruits an annual operating salary of 4 million or 2 million yuan, and a vice president with an annual salary of 800,000 yuan. Why does the vice president have to take these operations with him? He has strong abilities and has made great contributions to the company, and he is not as good as operating, which is extremely unreasonable in itself.

A person with a basic salary of 20,000 yuan has no commission, only a bonus, which is very attractive on the market. Then you can take out 10,000 yuan to set performance for these 20,000 miles, or 20%-40% are performance, and you can only get 20,000 yuan if you pass the performance.

If you do well and your performance score is even more than your full score, you can give the other party a raise. Don’t always think about getting commission. If you get a 20% commission, the other party will get rich overnight and slapped your butt away.

Do you think it was his credit? In fact, you started a big promotion and the company didn’t make money. As a result, the operation got rich, the anchor got rich, and the company was gone.

Generally speaking, the incentives for grassroots employees are just high wages + performance + other incentives. Remember to pay as high as possible. For example, if the monthly salary is 15,000, you can set the performance with 5,000. If you have 100 points, you can set the performance by 100 points. If you have 0 points for performance below 40 points, you will lose 5,000. You can only get 10,000. If you have 100 points for performance, you can get all 5,000.

If this employee does a very good job, in addition to getting 15,000, he can also get an additional reward, 17,000 or 18,000. If he feels it is not enough, he can set up a sprint award, challenge award, etc., and the indicators can be better, and those who can get it. These are enough.

Of course, you can also give him a raise and increase his basic salary of 15,000 to 17,000 or 20,000, but 8,000 out of 20,000 may be performance. This model is actually the simplest and is sufficient for middle and grassroots management.

The important prerequisite for dividing money is to find the right person, focus on finding people, and find the right person. If the person is wrong, it will make no sense to share the money.

There is a real case in Laogao E-commerce Club. A member gave an executive 65% of the shares, but the project went bankrupt. The management said why the boss did nothing but took 35% of the shares, so he had no motivation to do it. This is a real thing.

Everything should be fair and reasonable. The distribution of benefits should be matched with the objective ability and contribution of employees. Never mismatch or over-motivate them, as it will lead to imbalance in the entire system.

END

I am Lao Gao, the founder of the e-commerce circle and the founder of Jinguan Club.

It is terrible to do e-commerce without a circle. It is inevitable that one can start a business alone, suffer, confused, and detours...

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