What's a typical sales commission for professional services?
I ask because I am thinking of going into business with some friends (professional services and product company). We agree on how to split up the equity, but the business development expert (who also would be the CEO) is saying that there should be a 10% gross margin bonus for sales, while the rest (after cash reserves) gets divided by equity.
Does 10% seem high? Does this arrangement seem fair?
In truth he is very good at business dev, and he knows a bunch of people. But on the other hand, if we are going in as friends, shouldn't we just divide the profits (after cash reserves)? Plus, the way I look at it, I can't do my job (development/management) without his sales, but he can't do his job without the reputation that comes from the quality work of those I will manage.