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do you know that there's a difference between an incentive structure and a profit share agreement well there is and it's pretty significant in this video i want to talk to you about profit share agreements how they work why they're important and how you can utilize them in your business to not only retain but also attract high quality teammates so today i want to talk about profit sharing agreements profit sharing agreements for part of this kind of discussion and thought around building our dream teams if we're trying to put you know high performing people together and really incentivize them to do the best they can do so that we all win we've got to think about some of the mechanisms we use in order to promote that high performance to pay people to incentivize people and one of them out there is what we call a profit sharing agreement so back to the wheel as we always start here where are we focusing on this wheel primarily we're focusing down here around the golden ratio the golden ratio is where we optimize our finances where we we ensure that we're getting maximum out of what we are doing in our business financially one of the ways to do that is to ensure that we have agreements or employment agreements or you know human resources agreements that are good for us agreements that maximize the output of our business but also minimize any negative impact financially on our business that's around optimizing our finances okay so if i dive in to profit sharing agreements i want to first say i want to make sure that we understand a little bit of a distinction of when do we start thinking about profit sharing agreements now i've created some videos on how to pay people you know whether they're a 1099 contractor w-2 employee or potentially have an incentive structure or a profit sharing agreement or an equity structure those are all important because they all have very unique functions to them of why we would use it a profit sharing agreement is a pretty advanced agreement it's an agreement that we're going to [Music] utilize with someone or a strategic business partner to really really incentivize high performance around the overall function of the business so we're looking at high performance which is probably the most um important part of any kind of intensive structure okay it doesn't matter what incentive structure is whether it's incentive structure or profit sharing agreement and i'm about to tell you the difference between the two ultimately we are trying to promote high performance but not just high performance here it's overall so overall business performance okay that is the key driver to a profit sharing agreement is the overall business performance why because profits result from overall performance profits don't come from one single activity normally sales people are paid an incentive that's the difference between a profit sharing and an...