The 1/3-1/3-1/3 rule is defined as a formula that is used by many professional service firms – legal, accounting, etc. to give structure and incentive opportunities for their professional staff.

For many companies in the field of management consulting, the reward system mimics this well established and proven compensation program.

Beyond what happens within the management consulting firm is what firms do when outsiders – affiliates or sales professionals bring in new business. In my research on this topic, compensation varies from a straight “finder’s fee/commission” to a percentage of the project on a on-going basis. Inbetween is any number of permutations and combinations.

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It’s pretty hard to dispute the fact that many salespeople end up in their career path haphazardly. Maybe the individual did not like the daily tasks and routine of back office positions, maybe he or she knew a company’s product well from working there for years and slipped into a sales role, or maybe they were told – you have a great personality, you should be in sales and they tried it.

For many employers, the choice to hire an employee or an independent contractor had become one of convenience. It’s cheaper and easier to hire independent contractors. They don’t get medical or other employee benefits; they don’t get overtime and aren’t subject to minimum wage restrictions; the employer doesn’t withhold taxes, provide worker’s compensation or contribute to unemployment compensation and they help moderate the impact of peaks in work-flow.