At ON-3 we understand that our partners - the people who manage, sell and deliver our products - are the key to our success. The ON-3 Profit Distribution Model (PDM) is a “Pay-for-Performance” model designed to distribute profits fairly between “Profit Partners”; individuals who are either active employees (on the ON-3 payroll) or have an Independent Contractor Agreement (ICA) that is inforce. We made the PDM simple, and as straight forward and lucrative as possible, so that it’s a REAL incentive plan that is based on an individual’s contribution to a successful candidate and client experience with ON-3.
“Profit Distribution” is based on Gross Margin (GM). GM is the Net Revenue for the placement and/or billable work of an individual MINUS the Direct Costs of that individual. Direct Costs include any costs incurred in delivering the candidate to the client including, but not limited to, wages, per diem, taxes, benefits, Unemployment and Worker’s Compensation insurances and things like interview costs, background investigations and drug screenings, relocation assistance and visa sponsorship. GM does not include the cost of doing business; ON-3 will incur these costs which will be taken from the operations slice and includes such things as administration costs, the costs of software tools, etc.
Profit Partners can perform multiple roles in the operations, sales and delivery process, and shall receive profit distributions up to 56% of GM for all functions performed. The exact details and terms of Profit Distribution are established in and governed by the ON-3 Employee Agreement or ICA.