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#056: Are You Leaving Money On The Table? How To Structure 2024 Bonuses, The Story Of Weave: Software For Dental Practices

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Did you know expansion accounts for ONE THIRD of revenue post $1M ARR. If you’re not hyper-focused on expansion, and breaking up your platform with modules you’re likely leaving a lot of $$$ on the table… I'm a big believer in Charlie Munger's quote, "Show me the incentive and I'll show you the behavior". There are two primary metrics that drive the ultimate value of a software or technology company: Annual Recurring Revenue (ARR) Net Dollar Retention (NDR) I view these as the metric North Star. Additionally, most companies leverage Objectives & Key Results / milestones for each team member to track their individual progress and performance. I often see bonuses be willy nilly or solely tied to an individuals attainment of their own milestones. I think that's wrong. It has to be about "we" versus "I". Structuring a bonus plan were everyone gets paid on the company AND the individual goals creates the right alignment and incentives for all involved. BUT, it has to be simple! Here's an ex

Did you know expansion accounts for ONE THIRD of revenue post $1M ARR. If you’re not hyper-focused on expansion, and breaking up your platform with modules you’re likely leaving a lot of $$$ on the table… I'm a big believer in Charlie Munger's quote, "Show me the incentive and I'll show you the behavior". There are two primary metrics that drive the ultimate value of a software or technology company: Annual Recurring Revenue (ARR) Net Dollar Retention (NDR) I view these as the metric North Star. Additionally, most companies leverage Objectives & Key Results / milestones for each team…

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