In this scenario, I am a broker to a training scenario.
I am interested in 10% of the gross. How will a Training company break down the gross, and how will it split the percentage, gross or net with the trainer?
Let's say the amount charged is RM16k.
Pal, I am aware of your other ties with other AI trainers. Therefore, consider this our exclusive arrangement with you. We feel this is the most expedient arrangement, considering Ameezan is the trainer and the content developer. As for my fee, that is the industry standard for an introducer.
1. Total Gross Amount:
RM16,000
2. Broker’s Fee (My 10% of Gross):
RM16,000 × 10% = RM1,600
This is my fixed share, taken directly from the gross amount.
3. Trainer’s Fee (40% of Gross):
RM16,000 × 40% = RM6,400
The trainer gets this share as per the agreed percentage of the gross.
4. Remaining Balance for Training Company:
After paying the broker and the trainer, the training company retains the remaining amount to cover costs and generate profit:
RM16,000 − RM1,600 (broker) − RM6,400 (trainer) = RM8,000
5. Breakdown of the Training Company's RM8,000:
Operational Costs (20% of Gross): Let’s assume the operational costs for running the training are 20% of the gross amount:
RM16,000 × 20% = RM3,200
Profit for the Training Company: After deducting operational costs, the company’s profit is:
RM8,000 − RM3,200 (operational costs) = RM4,800
Summary Table:
| Allocation | Amount (RM) | Percentage of Gross |
|---|---|---|
| Broker's Fee (Your Share) | RM1,600 | 10% |
| Trainer's Fee | RM6,400 | 40% |
| Operational Costs | RM3,200 | 20% |
| Training Company’s Profit | RM4,800 | 30% |
| Total (Gross) | RM16,000 | 100% |
Key Insights:
Me (the broker): Secure RM1,600 as a fixed 10% of the gross amount. My share isn’t affected by any other deductions.
The trainer: Takes RM6,400, which is 40% of the gross, ensuring they’re fairly compensated for their expertise and effort.
The training company: Out of the RM8,000 remaining after the broker and trainer fees, they allocate RM3,200 for operational costs and retain RM4,800 as their net profit, which is 30% of the gross.
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