Should We Share the Profits With the Team? 

Just give them bonuses. People will struggle with pay dropping from a bad year, but a fat bonus on a good year will keep morale high without people raising their monthly bills to what they think is guaranteed income.

Share your profits with the guys doing the actual work. No just the sales guys.

I think most people would gladly accept a $75,000 a year raise, along with a path toward more.

I do this. It has been a complete game changer with culture. Everyone’s goals are aligned and we are getting all our competitor’s best talent. We give everyone an equal share of 20% of the net profits at the end of the year.

5:41 10% not 1%?

Pay those that bring anything to the table that helps the growth of the company

Dave point is valid even though he cant do math, paying off of meeting goals is commision, paying off the bottom line is profit sharing. For South Carolina sounds like these guys are making pretty good money, I would be more tempted to just start giving bonuses to everyone, let everyone know its not set and dependent on profits but if there are 8-10 guys at that location putting $1,000 in everyone check every six months would get you more bang for your buck, and maybe that is $2,500 for the managers.

Considering a young mid income, short term minded person with constant need for cash, are these still worth investing into? I am new to all of these and have incurred so much losses, I am beginning to think I am not doing what is good for me but just following people blindly.

Wow. 2 margin increases. This is some insight into overinflated home prices.

Don't do it. Establish a bonus plan. Have the bonus depend on the performance of the location. Maybe split it 50-50. 50% bonus depends on entire business doing good and 50% depends on their location doing good. If they are taking home 150k today and you want them at 200, give them 35% bonus dependent on annual performance. If company hits it's targets and their location hits it's targets, they get to make 50k extra. Tweak numbers as you see fit. This structure can help all members and not just the suits in chairs creating an even more fair and team environment where everyone chips in as it helps everyone as a collective.

All Owners are terrified of even their most trusted employees seeing the true amount of profit. This guy doesn't want his most talented trusted ppl seeing how much the owners make, let alone the ppl doing the actual work. Treated people like that is why i don't think his company will have success in the "legacy" stage.

I worked for a machine shop that made 2 million more than projected. They started to nit pick each department in October and our bonus was the same as the year before

You share the profits with the partners/owners who are building the business. You pay the employees a market wage, maybe a bonus for a good year.

Any of the scenarios dave mentioned sound great for the employee who will receive the offer. They get a real shot at contributing to the overall profitibilty of the company and are awarded their fair share on a percentage basis. All good but before you sign a no compete consider this. The owners decide in 5 years to sell the whole operation to a larger home builder. They walk away fat and happy but without equity you could end up out in the cold. The new company comes in and offers you a whole new pay plan that will be significantly lower than where you were.

His business is small, a profit share would cost him nothing and incentivize growth and performance. Give the sales operations and marketing teams a bonus not actual profit sharing system. Each year they produce above what we expect to make they get a bonus, getting a 10k bonus is huge in moral.

Sharing profits with the guys sitting in a cushy chair in AC and not the ones building the houses is crazy

If you are worried that your employees will leave and undercut your pricing - they likely will. This bubble you’ve created may not last, if you had some competition.

I wonder how the quality is on this build.

It is not 1% it is 10%.

Dave was out of his depth here

Aren't non compete disclosures illegal now?

If they’re your employee I would share some with them

Pizza party! Woo hoo!

Bet they probably still just got a pizza party

Hope they don’t have a year with negative profit…..

You should - "encourage" people, strongly, to be better prepared when they call you - to give a SHORT, cogent synopsis of their problems. A distillation - that doesn't turn into a meandering, "Who struck John?" soliloquy, that obfuscates whatever point they are trying to make rather than clarifying it. I turned off this video, couldn't stand it, because I couldn't put up with his irritating lack of both clarity and organization of his story. If I were calling you, asking for advice, I would spend whatever time was necessary for me to write down EVERY single point I was seeking guidance from you regarding; do my best to write it out - every point - carefully and in a succinct fashion. Then, I would rehearse it and, in the process, listen to how the content actually played out when spoken and then? If it didn't do what I wanted and wasn't likely to get me what I needed AND just as importantly? Use your valuable time wisely - rather than waste it as, in my opinion, this guy did? Then, once I had spent the hour or more needed to affect that effect and felt confident that the resulting exposition of my quandary was precisely delineated and stated to elicit from you - in short order - an answer that was commensurate with your abilities and my efforts and needs? I would call you. I would not "wing it" and make a fool of myself in the process and waste your time. As Patton or was it Rommel said, "An ounce of preparation and planning will save ten gallons of blood." Or, words to that effect. If I were you and faced with speaking with this fellow who, albeit, is sincere but unprepared? I would say, "Sir, I am happy to do my best to help you with whatever problems you are calling about, but first? I want you to go back to your drawing board and spend time to properly organize your mind and presentation because, I don't have time to waste letting you do the thinking you should have done - before you dialed me - listening to you try to sort it out on the phone." If his thinking is this unfocused, it's actually amazingly he has a 26 million dollar business! I wouldn't let myself work for him, but then, I don't work for other people and almost never have in my entire life.

Damn 26K in profits way to go guys

This guy's talking in circles. Why doesn't the caller just say, "Hi, I just wanted to tell my friends I called your show."

Wow he really seems deflated to have to share the books with his partners. Just do salaries and a bonus percentage based on salary and not company profits.

That’s 10% not 1%…

Dave.... 150k is not 1% of 1.5mil just saying. 10% is already a healthy share, I would just give performance bonuses at the end of the year personally buuuuut I am working failure number 4 sooo take no advice from me lol

I wonder if this guy has ever said "nobody wants to work"?

150k is not 1% of 1.5mil lol

Non-competes are illegal Dave 🙄

If you dont share losses with the team, dont share the profits.

williams walking stick clifton like doug they fell sick sharons diseased tick

Share the profits as long as you share the liabilities...

No. Keep it all. You did it all by yourself. And I am sure your guys didn’t help at all (sarcasm)