Guaranteed Payments

What are Guaranteed Payments?

Guaranteed payments are a type of compensation structure sometimes used in partnerships, particularly with professional services firms. In this model, a partner receives a fixed, regular payment from the partnership, regardless of the company's profitability in a given period. This is different from a typical profit-sharing arrangement where a partner's income depends on the business's performance. Guaranteed payments provide a stable and predictable income for the partner, similar to a salary, even though they are still a business owner and not an employee.

Related Terms

Gatekeeper

What is a gatekeeper? A gatekeeper is a person who controls access to someone else, typically a key decision-maker within a company. This could be an executive assistant, a receptionist, or a junior manager. In B2B sales, getting past the gatekeeper is often one of the first and biggest challenges.

Geo-targeting

What is Geo-targeting? Geo-targeting is a marketing tactic where you deliver specific content or ads to a user based on their geographic location. This can be as broad as a country or as specific as a zip code. For example, a retailer could use geo-targeting to show an ad for their local store to p

Global System Integrator (GSI)

What is Global System Integrator (GSI)? A Global System Integrator, or GSI, is a very large consulting firm that helps big enterprise companies with their complex technology projects. Think of companies like Accenture, Deloitte, or Capgemini. GSIs work on massive, multi-million dollar projects, hel

Go-to-Market (GTM) Strategy

What is Go-to-Market (GTM) Strategy? A Go-to-Market (GTM) strategy is a company's comprehensive plan for how it will launch a new product or enter a new market. It's the playbook that covers all the bases: who the target customer is, what the product's value proposition is, what the pricing will be

Gray Market

What is Gray Market? The gray market refers to the sale of official, genuine goods through unofficial or unauthorised distribution channels. For example, if a reseller in one country buys a product and then sells it in another country where they are not authorised to do so (and often at a lower pr

Gross Margin

What is Gross Margin? Gross margin is a key profitability metric that shows how much profit a company makes from selling its products, after subtracting the direct costs of producing them (known as the Cost of Goods Sold, or COGS). It's usually expressed as a percentage. For example, if a product s