---
tags: Operations
---

# Commission/Consult Proposal

## Situation
As Raid Guild grows and takes on more and bigger raids, we need to find a more efficient and fair way to compensate members during the consultation process and increase incentives to complete.

## Goals
These are some of the goals we want to accomplish:
- Ensure the Consultant (defined as the person who takes the consultation) is fairly compensated for taking the consultation
- Make scheduling consultations faster/light
- Create a way to incentivize both the consultant and project SMEs to work together on pre-work to close deals (i.e. specs, project timeline)
- Compensate any SMEs who worked on the sales process fairly
- Create a flexible system where the Consultant is not also expected to be the Project Manager or the Account Manager.

## Proposed Solution
**Summary:** Add in a sales commission, that is separate from the consultation, as a percentage of the project budget that can compensate the Consultant and Project SMEs

Our proposal is to separate out the Consult Process from the actual sales process. This means that there are 3 s:
1. Consultation
2. Sales Process
3. Project Work (raid!)

**Consultation:** Consultations will operate with a 300 DAI payment (flat fee) with 10% of that going to Raid Guild. These consultations are designed to be handled by one or two persons max to keep payment per person high enough to be equitable.

**Sales Process:** This is the process of taking the information learned in the consultation process and starting to spec out the project. Think of the commission amount as the budget you get from the future project budget to close the deal.

By participating in this process, you are eligible to earn a commission as a percentage of the total project budget. This allows the consultant to actually pay Project SMEs fairly for the time they spend helping Spec out the budget.
- Additionally, by creating an outcome that both the consultant and project team are tied to, we create a mutual incentive to work together on closing the deal.
- By making it a percentage of the project budget, it has the added benefit being flexible to differences in project size. (i.e. a project budget of 50k results in a higher commission then the 10k one. This will create higher incentives for more complex projects that require more pre-work while still incentivizing completion of small project budgets.)

**Project Work:** This is the phase after the contract is signed and the project team is working on the deliverable. The consultant is no longer eligble for this budget (unless they join the team in another role)

## Mechanics
Right now we're proposing that 3% of the project budget would be paid as a sales commission for the sales team.

Additionally, the guild will take 10% of the project budget (and the consultation) as Spoils (no change from the status quo).

This is an example of how a 50k project would break down.

To change and model out different behaviors/use cases, here is the link to the excel. Please use the "Testing" tab.
https://docs.google.com/spreadsheets/d/1hy9D4f_nX79d9MXmZQlCZiAnSDViJOVugzLVYb7BFuk/edit?usp=sharing

### Share Buy-in (proof of work)
Raiders have the opportunity to buy shares in the guild with up to 20% of any income they earn, including from consultations and raids. The share price is 0.1 ETH (same as membership tribute "price"), or the equivalent in DAI.

Since the price of ETH in DAI can fluctuate, this approach requires that consultants either a) submit a proposal for each consultation they conduct in a timely fashion, or if they want to batch multiple consultations into a single proposal, b) keep a record of their consultations and the price of ETH at the time of each.