Eat What You Kill Partnership Agreement
The “eat what you kill” partnership agreement is a unique way of structuring a business partnership where each partner is responsible for generating their own revenue. This type of agreement is commonly used among law firms, where each partner is expected to bring in clients and billable hours independently.
The phrase “eat what you kill” refers to the idea that each partner will only receive a portion of the profits that they generate through their own efforts. This type of partnership agreement can create a sense of competition among partners, as each is motivated to bring in as much business as possible to increase their individual earnings.
The benefits of an “eat what you kill” partnership agreement include the ability to attract high-performing individuals who thrive on competition and autonomy. It also allows for greater flexibility in how each partner brings in revenue, as they are not limited to the firm`s designated clients or practice areas. Additionally, this type of agreement can result in greater efficiency, as each partner is motivated to work harder and generate more revenue.
However, there are also potential downsides to this type of partnership agreement. It can create an atmosphere of individualism and lack of teamwork, as each partner may prioritize their own earnings over the success of the firm as a whole. It can also be challenging to manage conflicts that arise when partners have differing levels of success in bringing in revenue.
To mitigate these potential challenges, it is important for partners to establish clear communication and expectations upfront, and to have a strong system for allocating profits fairly. It is also important to foster a culture of collaboration and teamwork, even within an “eat what you kill” partnership agreement.
In conclusion, the “eat what you kill” partnership agreement is a unique and potentially effective way of structuring a business partnership. While it can come with its challenges, with clear communication and a commitment to collaboration, businesses can reap the benefits of this type of agreement and thrive in a competitive market.