The foundation
From the first PPC team to several specialized teams across different areas of expertise (like SEO, Web Development or Web Analytics) – there was always one idea, a framework that up to this day stands as “The Binder” of the organization: ”To work in a system that allows us to fairly divide revenue, costs, benefits and responsibilities.”
The value of entrepreneurship and flat structure means that there is no limit in the number of teams within the organization. But no matter how many, each one of them still needs to have the same Binder – to fairly divide revenue, costs, benefits and responsibilities.
How does it work in practice?
Several rules make this system work:
- 70% of the project’s revenue goes to people working on it.
- Costs are progressive – the higher your personal revenue is, the higher share of costs you cover.
- Additional benefits are voluntarily and accessible to all members of the organization the most attractive benefit of all is the Performance Model itself.
- Responsibilities are shared equally between all members of the project or the internal Role. Failure or success is never dependent on one name – it’s a cooperation.
- As there is no boss at Kon Digital and we value entrepreneurship – you have the freedom to build your own project portfolio and to acquire new clients at a rate that’s satisfactory for you – read more in our “Portfolio flexibility” article.
- There is no limit to the revenue that a person may earn in Kon Digital.
Doesn’t it still sound crazy and kinda unreal? That’s why it needs a little more explaining.
The Minimum
The Performance Model is outstanding in a healthy market situation when money is flowing at an exceptional rate and everyone’s happy with their project portfolio. This is the perfect scenario. But it’s never the case for a longer time. That’s why we needed to come up with the answer for more troubling times – “The Minimum” salary.
The Minimum is a salary that you start with, and is a wage that should be enough for you to make a living in times of crisis. It may be due to the loss of a major project from your portfolio or due to the market situation in a country. Every one of us has our own definition of “crisis”. The Minimum is not supposed to be a desired salary for you. Quite the opposite – you should never be satisfied to earn that amount of money, because if you’re a member of Kon Digital, you’re an ambitious person, right? Of course, you should earn enough to live comfortably every day. Performance is the cherry on top.
The organization grants you the stability when it’s tough and the opportunity to earn exceptional money when the situation is healthy. That’s why the Performance Model is the “crème de la crème” of all benefits in Kon Digital.
How is this profitable for the organization?
Well… it isn’t. At least not in any extreme way.
Kon Digital is not built to make money for the owner. Or the CEO. Or any other “boss”, because there’s no such thing as a “boss”. It’s designed to grant fair division of revenue, costs, benefits, and responsibilities and such fairness will not be achieved in a corporate structure, where 10 junior members make money for 1 CEO.
It doesn’t mean that the organization is not making a profit and stands on the verge of survival. Every one of us needs to make an effort to earn enough revenue to cover their Minimum salary and make the Performance happen. Any other case means you simply don’t earn enough to cover your “existential” Minimum salary, which in the long term is not good for both the organization and yourself.
Okay, so where’s the catch?
There is no catch. Besides the fact that it’s not that easy to earn a lot of money in this world. But you’re an entrepreneur, you already know that, right? 😉
