Know-How Exchange : Other

Something to keep in mind is that the incentive program should match the objectives of the job. If they want your bonus based on something besides referrals, chances are you will focus on that something besides referrals.

If you had a successful year, what is it that you would have accomplished? Needs to be something that is within your control and works towards company goals.

Once you can answer this question, you can see what to focus the bonus on. Truthfully, for a Director level position, I would prefer to see it aimed more at net profit increase, rather than back at the more basic level of how many projects completed. Completing projects doesn't mean you made any positive contribution to the company (as it says noting about whether that project was useful or not).

These prior questions have some good suggestions:
- https://www.marketingprofs.com/ea/qst_question.asp?qstID=25879

- https://www.marketingprofs.com/ea/qst_question.asp?qstID=17468

Another possibly useful link - this is on bonuses for product managers:
https://www.pragmaticmarketing.com/publications/topics/03/0307sj

You're basically being offered an MBO arrangement, and that's a good thing because it forces you to think about what it is you can and should be doing for the company. And it forces the senior management to put their money where it belongs -- on performance, doing the things you can do to improve the company.

I've worked under an MBO system a few times, and it's really a great way to stay focused on the things that count. You have to identify them up front, figure out how they'll be measured, and report on progress on a regular basis.

The specifics depend on your company's goals, the industry, business plans, etc. Fortunately, there is no one-size-fits-all MBO program for Marketing Directors. Part of the challenge is to identify the 3 or 4 (or 5) things YOU can do that will really make a difference.