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What is the key danger in an incentive-based agreement? This one might leave ya scratching your head. Anyway, guys and team, its Simon here from The Contract Company, Contracts, its what we do, all day every day, and sometimes overnight, lucky us. Righto, so you got an incentive-based contract. Youre about to sign, and while youre putting it out there, basically what that means is you will pay someone based on how much revenue or cash they generate. So whats the biggest risk? Its costs. What does that mean? you say. Right, well. Generally its always easy to determine how much revenue a person has brought in, but if youre the person whos brought in the revenue, what you cant see is how much, what the costs of the company are. So while you may be paid on say, 30% of revenue once the companys costs have been taken into account, you dont know what those costs are. And so what Ive seen happen in the past, is that, lets say this person brings in 100,000, and lets say they ge
