LossToFollowUp
Full Member
- Joined
- Sep 30, 2022
- Messages
- 37
- Reaction score
- 54
Question about offers like this for both OP and the general readers.
There are variable bases and percentages but in this scenario when it says 25% after 250k collections, does that mean a 1 time 250k threshold that you only need to pass once in your career there? Or does it renew every year? Strictly asking about bonus, I know base is the same.
For instance. Year 1 collect $300,000 then bonus 25% of remaining $50,000. Then year 2 collect $300,000 again and bonus 25% of remaining $50,000.
Or it is year 1 collect $300,000 then bonus 25% of remaining $50,000. Then year 2 collect $300,000 keep 25% of full $300,000?
Which scenario is correct? To be clear I think both are unethical. Just trying to understand how these contracts work.
Depends on specifics of contract but typically it resets each year. So in your examples, you would have to newly obtain the 250k threshold every year before the 25% kicks in. Like many before mentioned, not really sure where this "next level" accounting came from but it sure has become the standard.