Overview

At Demand.io, we believe in transparent compensation that directly ties individual success to company growth. Our Profit-Sharing Bonus (PSB) program offers substantial wealth-building potential through monthly payments based on company revenue growth. This guide illustrates how PSBs work and what you might expect to earn over time.

How PSBs work

Your monthly PSB is calculated using a two-tier structure that rewards both immediate impact and long-term value creation:

• Tier 1 (First 30% of Growth):
  • Applied to the first 30% of revenue growth above your baseline
  • Higher percentage rate based on your Partner level
  • Rewards immediate impact and contribution
• Tier 2 (Remaining Growth):
  • Applied to all growth beyond the initial 30%
  • Lower percentage rate based on your Partner level
  • Rewards long-term value creation

PSBs are calculated and paid monthly, with each payment including a detailed performance report showing:

• Current company revenue
• Growth metrics
• Your PSB calculation details
• Progress toward organizational level ceilings

Baseline revenue calculation

Your baseline revenue, which serves as the starting point for calculating your PSB, is determined by taking the average monthly revenue for the 12 months prior to your enrollment date in the Partners Program. This ensures a fair and stable foundation for measuring growth, accounting for seasonal variations and other cyclical business patterns.

For example:

• If you join the Partners Program in January 2024
• The baseline would be the average monthly revenue from January 2023 through December 2023
• If those monthly revenues totaled $15M, your baseline would be $1.25M ($15M ÷ 12)

Revenue growth scenarios

Our projections begin with Demand.io's estimated 2024 revenue of $15M ($1.25M monthly). We model three growth scenarios:

Conservative case (10% annual / 0.83% monthly):

• Year 1 (2024): $15.0M
• Year 2 (2025): $16.5M
• Year 3 (2026): $18.2M
• Year 4 (2027): $20.0M

Base case (30% annual / 2.5% monthly):

• Year 1 (2024): $15.0M
• Year 2 (2025): $19.5M
• Year 3 (2026): $25.4M
• Year 4 (2027): $33.0M

Aggressive case (50% annual / 4.17% monthly):

• Year 1 (2024): $15.0M
• Year 2 (2025): $22.5M
• Year 3 (2026): $33.8M
• Year 4 (2027): $50.6M

Example career trajectories and PSB projections

Let's explore three typical career paths and their corresponding PSB potential. All projections include proper monthly growth calculations and apply relevant floors and ceilings.

Mid-level employee (L4)

• Organizational ceiling: $30,000 monthly / $360,000 annually
• Partner progression: P1 → P2 → P3 → P4

Annual PSB projections:

Conservative case (10%):

• Year 1 (P1): $9,000 (floor applies)
• Year 2 (P2): $18,000
• Year 3 (P3): $30,000
• Year 4 (P4): $45,000

Base case (30%):

• Year 1 (P1): $12,000
• Year 2 (P2): $45,000
• Year 3 (P3): $90,000
• Year 4 (P4): $180,000

Aggressive case (50%):

• Year 1 (P1): $15,000
• Year 2 (P2): $60,000
• Year 3 (P3): $180,000
• Year 4 (P4): $360,000 (hits ceiling)

Senior employee (L8)

• Organizational ceiling: $200,000 monthly / $2,400,000 annually
• Partner progression: P2 → P3 → P4 → P5

Annual PSB projections:

Conservative case (10%):

• Year 1 (P2): $36,000
• Year 2 (P3): $72,000
• Year 3 (P4): $144,000
• Year 4 (P5): $216,000

Base case (30%):

• Year 1 (P2): $90,000
• Year 2 (P3): $180,000
• Year 3 (P4): $360,000
• Year 4 (P5): $720,000

Aggressive case (50%):

• Year 1 (P2): $180,000
• Year 2 (P3): $360,000
• Year 3 (P4): $720,000
• Year 4 (P5): $1,440,000

Senior employee with exceptional performance (L8)

• Organizational ceiling: $200,000 monthly / $2,400,000 annually
• Accelerated progression: P2 → P4 → P6 → P7

Annual PSB projections:

Conservative case (10%):

• Year 1 (P2): $36,000
• Year 2 (P4): $144,000
• Year 3 (P6): $288,000
• Year 4 (P7): $360,000

Base case (30%):

• Year 1 (P2): $90,000
• Year 2 (P4): $360,000
• Year 3 (P6): $720,000
• Year 4 (P7): $1,440,000

Aggressive case (50%):

• Year 1 (P2): $180,000
• Year 2 (P4): $720,000
• Year 3 (P6): $2,400,000 (hits ceiling)
• Year 4 (P7): $2,400,000 (hits ceiling)

Understanding monthly variations

Your monthly PSB payments will vary throughout the year due to:

• Revenue growth occurring gradually month-over-month
• Floor amounts applying in early months
• Ceiling amounts applying in later months
• Tier thresholds being recalculated monthly

Example monthly progression (L4, P2, base case year):

January: $1,500 (floor applies)
February: $1,800
March: $2,100
April: $2,700
May: $3,300
June: $3,900
July: $4,500
August: $5,100
September: $5,400
October: $5,700
November: $5,850
December: $6,000
Annual total: $45,000

Monthly PSB reports

You'll receive detailed monthly reports including:

Revenue metrics:

• Current month revenue
• Year-over-year growth
• Quarter-over-quarter growth
• Growth since your baseline

PSB calculation:

• Your current Partner level
• Tier 1 and Tier 2 rates
• Monthly growth calculation
• Applied floor or ceiling (if relevant)
• Running annual total

Company context:

• Key performance indicators
• Major growth initiatives
• Strategic updates

Additional considerations

Partner level advancement:

• Based on performance and impact
• Evaluated during bi-annual reviews
• Can be accelerated for exceptional performance
• Extended Partners cannot exceed Level 5

Impact of exceptional performance: