How should the performance bonus be set when a small team invests 1 million yuan to build a high-quality store? How can the development team maintain its enthusiasm?

Amazon Jingpu Team:

1. The current team consists of 5 people (two developers, two operators, and one artist).
   

2. There are two development plans, the main one is the precision-built model, with 5-10 orders per day for a single product and an investment of 20,000-30,000 yuan (the entire project is planned to invest 1 million yuan in the first year, and subsequent projects can continue to increase investment)
   
   

I would like to ask, how should the development under this model be evaluated?

1. Product development progress, how many products should be developed per month to be considered satisfactory?
   

2. How to set up performance bonuses for development, based on profits, sales
   

3. How to keep your development team motivated and not slack off

Trend Selection Super Brother

Agree with: Wangwang Zaizai, Earn 100 million across borders, hola, Arashi, Bu Jingyun more »

It is recommended that you focus on improving the success rate of product selection rather than requiring quantity.
As I understand it, the purpose of fine paving is not to pave, but to select the best.

The investment in this product is not small. Taking the time period into account, it will take at least 3-4 months to get the money back. Even if one person only chooses 3 products per month and everything goes well, without considering the subsequent capital investment, this model will require more than 300,000 yuan to operate.

You ask developers to "not slack off" and improve the KPI of the number of products launched. Developers work hard to launch products, and the money goes to the payment and shipping costs. But what if the sales are not satisfactory? If you continue with this model and continue to invest money, your overall return on investment will be so low that it is unbearable to look at. Even if you calculate carefully, you will still lose money overall.

We have done something similar and selected 15 product lines. We worked on product differentiation (micro-innovation) requirements, quality control, supply chain negotiation, etc. Among them, the market trends of 13 product lines were in line with the previous market analysis and judgment, but only 4 product lines were considered successful.

Although there are many factors that affect this success rate, such as changes in supplier delivery times, the professionalism of operating personnel, insufficient initial investment and failure to grasp market trend nodes, etc., and we are already better than 90% of our peers in terms of initial preparation, but the objective result is only this.

Of course, after reviewing the process, we found that many node processes could actually improve the success rate, but these are all things of the past. The money and manpower invested have already been spent, and the returns are not satisfactory.

Assessment is not just an indicator, it should be deeply integrated with the company's overall specific situation. Especially when your team is so small, many things are too abstract and meaningless.

It is still recommended that you strengthen the review of your success points, continue to operate according to existing best practices, and focus on profit incentives for assessment KPIs.

Anonymous user

How do we define "fine shopping" and "boutique"? We select products when we have free time during the operation period. The best case is to find new products with potential on the market and order them directly, but usually we modify the molds of products on the market. It takes at least two months to select products, negotiate with the factory, get samples and ship them. When it's good, we can order four or five models a month, but when it's bad, we can't order a model in two months. On average, we only have one product a month, but the success rate is quite high. More than half of the products are stable and profitable in a year. We should call this "fine shopping". After all, we don't have brand building, we don't do vertical business, and our product categories are very diverse.

You can launch more than ten products in a month. With such high efficiency, you must be getting a lot of commissions.

Anonymous user

Agree from: Xiaolingtong off-site promotion, Chongduge

Not sure if it is an operation problem or a development problem. If the development staff is low, then the operations staff are also idle. Fire one development staff or ask him to switch to operations.

The progress of product development, how many products are developed in a month is considered satisfactory; the speed of operation, how many products can be launched in a day.

How to set the performance bonus for development, set targets based on profits, sales, product infringement, account performance losses, year-on-year sales compared to the previous month, etc.

How to keep the development team motivated and not slack off; Commission points for stable old products will be reduced, and commission points for new and popular products will be increased

56155A

Agree with: Earn 100 million cross-border, Xiaolingtong off-site promotion, Chongduge

It depends on which aspect you belong to.

1. There are also some companies that are more refined among the refined shops. The company I worked for before had 8-12, with a minimum of 8. They focus on differentiation, various infringements, and how to match them. I know that some companies that are more refined among the refined shops have a minimum of 25 per person. They don’t have such high requirements for products. Generally, I think 12-15 is enough.

2. What do you mean by performance bonus? It's a commission based on the profit. In Shenzhen, my gross profit is 5%. Or is it a bonus if the product reaches a certain quantity?

3. This is a reward for the number of products launched, or if a better product becomes popular, you can get more bonus.

Brayden • Shenzhen • 1 day ago

Is it this much for every month or in total?

On the way. • Jinhua • 1 day ago

Is Jingpu an operation and development product?

56155A • Shenzhen • 9 hours ago

@Brayden: Every month, the first fine shop is like this, I mean the companies that have development

lEtmIheArU • Shenzhen • 2 hours ago

@56155A: Speaking of this, if there are more than ten products per month, wouldn’t they basically just hang there and run automatically after they are put on the shelves? Another wave of new products will come out the next month. Can you keep up with this speed?

56155A • Shenzhen • 2 hours ago

@lEtmIheArU: Our company has more than 10 accounts, and each account only logs 3-5 users a month.

lEtmIheArU • Shenzhen • 2 hours ago

@56155A: It's OK if a dozen accounts share the new product quota for a month. If there is space to promote, one or two accounts can fill up Dangdang.

Cross-border ten-year slacking king

Now is not a few years ago. You can't release too much at the beginning. The subsequent funds are geometric growth. You need to have a certain amount and set a good standard. Then enrich the existing product line of models with good orders.

We used to have three assessment indicators, OKR and KPI (pure nonsense), just take a look at them for reference
OKR mainly refers to the number of products released, the quality of products released or customer complaints, and the enthusiasm of employees.
KPI is to assess the sales volume ladder, the gross profit ladder, and finally the proportion selected by the operation

Make him 100 million cross-border • Jinhua • 8 hours ago

grateful

Cross-border Ten Years of Slacking • Ningbo • 8 hours ago

@赚他一亿跨交: Are you in Yiwu? If so, can we talk?

Raise the claws of wealth

Our previous company also had this model. For development, we would get 3-4 points if the monthly gross profit reached 50,000 yuan. The reward would be higher in the early stage, and then it would be reduced to 2 points after the product life reached 1 year (because in the past, the developers would just live off the old products and not launch new products and spend all day slacking off). Then we were required to select 1-2 products every week. Whether the operations sell them or not was one thing, but we had to produce results. For operations, we got 8 points if we selected the products ourselves, and 5 points if the development helped us select the products. The commission would be given if the gross profit reached 30,000 yuan.

Anonymous user

Jingpu develops 2/30 models in a month. How many are finally shipped? What is the success rate? It's too much.
Are you a new team? Just starting out?

First build up the team, products, and sales and then set KPIs. In my previous company, the early reward mechanism was linked to the specific small goals of employees' actual work. It was not responsible for sales and they would directly give (xian) money (jin) based on how much they achieved.

Make him 100 million cross-border • Jinhua • 1 hour ago

Could you elaborate on how the bonus is distributed?

Anonymous user

Money, interests, and the human nature reflected behind them.

Let’s first have a specific execution indicator.

For example, the number of products to be developed (each company has its own selection logic and profit algorithm, so I won’t go into details), or the number of successful purchases, the number of shipments, etc., some specific indicators. Product selection comes first and is the forerunner.

Operations specify specific execution goals. The basic operations list is relatively difficult to determine. Just complete the basic work. How many pictures should the artist complete? Quality? A+, A++, etc. Focus on the key points. What is the most important thing for operations at the moment? Traffic... For example, how much money should be spent on on-site and off-site advertising, how many sessions should be achieved, and what ranges should CPC/CVR/ACOS/ROI values ​​be in. I won’t go into details. The indicators should be set according to the product and company). After the above execution goals are achieved, you will get paid according to the completion ratio.

As a boss, you also need to see if you are willing to give. This is different for different people. In fact, there is a point that needs to be grasped very accurately. The current employee salary (base salary + bonus) will be lower than the KPI assessment later. From the employee's psychological point of view, the company will make money in the future, and the employee salary (base salary + performance) will increase. How to pay money specifically depends on the company's costs, personnel, and products. You can increase the base salary in the future, and the performance can basically remain the same or slightly increase compared to now, and then work out a set of logic to make people willing to follow you and feel motivated.

The spirit of the workers is to get what they deserve. Don't let employees feel that they are just pioneers who are not used up, and don't let them feel unbalanced or too arrogant.

wooden head

Agree from: andy鲸123

I suggest you focus on the quality of product selection first. We are a small company, and I am both an operator and a developer. I used to be very meticulous in product selection. Although the product categories I selected are not that large, the sales volume is basically in the small category. Currently, the number is 50. Now the boss requires two to three products per month. I am so busy that I can’t choose at all. I am already busy to death, but I have to spend most of my time on product selection.

THERESIME • Shenzhen • 4 hours ago

Isn't that so scary? You are required to select 2-3 products a month? Has your salary doubled?

andy鲸123 • Shenzhen • 57 minutes ago

It's just like me. I will go to the office tomorrow to select products. I will select until I vomit. And I will ask you from time to time if you have selected products.

3481508815

For small companies, it is recommended to increase the sales volume first and then consider setting up assessments. In the early stage, you can set up bonuses first. For example, when a single product sells a certain amount of US dollars per month, you can give a certain bonus. If you set up a system assessment right away, it will limit the development efforts.

Anonymous user

I don't understand. A single item sells 5 to 10 orders a day, 150 to 300 orders a month. Even if we calculate that the advertising accounts for 66% of the orders, and the advertising orders are 100 to 200 orders, and the conversion rate is 10%, it will take 1,000 to 2,000 clicks, and 1 dollar per click, which means 7,000 to 14,000 advertising fees. The product cost is 50 per piece, which requires 7,500 to 15,000 costs.

CGL13578

Agree from: Xiaolingtong off-site promotion, Chongduge

1: Calculate performance based on the number of orders, such as tiered rewards for exceeding 50, 100, 200, and 300 orders.
2: Calculate the commission based on the total SKU gross profit. For example, if the gross profit exceeds 2,000 USD, the commission rate is how much, and if the gross profit exceeds 5,000 USD, and so on.

jeffguo001

Agree with: Earn 100 million cross-border

It is better for small companies to be result-oriented in their assessment. They judge heroes by their success or failure, and assess based on the number of orders and profits. The standards should be as simple and clear as possible, and there should be no complicated procedures and standards like those of large companies.

kxmyth

Agree from: Xiaolingtong off-site promotion

Is it that strong? If the average order of a single product is 7, and two developers develop 10 models in a month, the investment is only 20,000 to 30,000? If the daily sales in the first month are 70, six months later... one year later... Amazon is too easy to do business.

Qiujin Guo • Shenzhen • 1 day ago

It should be a single product with an investment of 20,000 to 30,000 yuan. There are not many first orders and the unit price is not high. If the total investment of 10 products is 20,000 to 30,000 yuan, then it is a very low-priced product.

Make him 100 million cross-border • Jinhua • 1 day ago

Single item 20,000~30,000

Qiujin Guo • Shenzhen • 20 hours ago

The cost and weight of a single item is 20,000 to 30,000 yuan. If you only consider the heavy ones, you have to keep 0.5 yuan for shipping and 0.5 yuan for the minimum initial advertising, which will leave 10,000 to 20,000 yuan. You have to estimate the periodic payment time and the operational capacity. Then you have to first determine whether you have a supply chain advantage and whether you need to make minor modifications or a small mold.

benhawk • Shenzhen • 7 minutes ago

Not every product has so many orders. If the success rate of product selection is 100%, everyone will rush to do business on Amazon.

Anonymous user

Support from: Ohyaofaticai, JuliaWong, Xiaolingtong off-site promotion, lEtmIheArU

Do you guys have so many? Jingpu has more than 8 models a month, which means one model every 3 days. Can you do product research, find factories to select specific products, negotiate prices, etc. in 3 days? Too much. Too much.

56155A • Shenzhen • 2 days ago

No, not really. The kind of fine shopping I'm talking about is just what's sold in the market, and then I make some differentiation. Finding factories to select products doesn't count. Basically, they are all ordinary products of 1688, which is similar to the round ones sold by others in the market, and then I make differentiation. I am the seller of this

Minions • Shenzhen • 1 day ago

@56155A: Doesn’t it take time to find a factory to select products? It’s so complicated. I don’t even know how to start.

Qiaodousada123 • Shenzhen • 1 day ago

We only produce one model per month

I feel the breeze • Shenzhen • 1 day ago

Now I feel bad

XUWUmail • Shenzhen • 1 day ago

It can be done simultaneously. I can discuss cooperation with the manufacturer and look for the next product at the same time. There is no problem with time, but it is tiring because the work before the product is launched is quite tedious.

Shede_911 • Shenzhen • 1 day ago

@桥豆麻袋123: If you only sell one product a month, you will be in trouble unless every product makes money.

Hao Moumou • Shenzhen • 1 day ago

@桥豆麻袋123: Ah? ? ? Fine shop? ? One model per month? Super high success rate + high customer orders? ?

lEtmIheArU • Shenzhen • 2 hours ago

It seems like what you said is that it is very easy to promote products, just put them on the shelves and then the sales will explode.