Salary question - 100% commission based

[toomanytoes]

I am currently part of 2 pod practice, currently an associate. I joined 1 year ago after residency. I started with 60k as base and after 3x production, i went into 100% commission at 30% rate. I love this practice , the people, and the schedule. Contract included 1k CME, malpractice, association dues, licensing, etc. No health insurance It took me several months to get to commission, it was very slow at first (as expected). Kind of felt i did my own marketing during down time after I started. What would be a good percentage to ask for when 100% commission. I took the offer without much knowledge about how all this works.

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[bunNfxr]

I would apply for other positions. Look into hospitals, other practices, VA or any other opportunities, even those cheesy nail clip scammers. Just get offers. Then go to your employer and say I can get x, y or z. I love the practice, but I have expenses and need to make a decisions that are best for me and my family. I don't know you or your debt load, but I can't imagine you are making ends meet at 60k/year struggling to make commissions. One way or another you need your salary to be well up over 100k/year in the next few months. 30% without health insurance is offensive in my opinion. If this is the arrangement now, then he absolutely expects you to buy the practice later with big loans and risk for you ; the cost to buy the practice will be based on an overpriced "goodwill" component; after you have saved nothing , but have hopes of making "the real money" when you own the shop of an outdated practice model headed for the "remember when doctors owned their own practices" category. You need patients as well. Not sure how the staff allocates new patients, but 3x 60K is 180. At this time you should be on target for at least high 200-300 k productivity. If not, the practice cannot support two doctors and you nee to get out before you are too settled in your location and have to start over building another practice from the ground up.
Overall, without knowing much about your situation, I think you need to move on. But, I am not seeing the whole picture, just what you have disclosed above. To make a living, you need to see at least 18-25 patients per day. If you are surgical you should be booking at least one a week and building more. That should put you into the 300-400K productivity range.
I believe most practices are running at about 50-60% overhead lately. Without healthcare as an expense, it should be closer to 50%. So you are splitting the fruits of your labor 60/40. He has plenty of room to negotiate if you decide to stay.
My answer is likely conservative, as most of the posters here will scold you for taking a job that does not start at >200K. I am not in private practice anymore, but you are being paid less than I was paid 20 years ago, before even accounting for inflation.
Good luck to you,

 

[UIO1098]

I am currently part of 2 pod practice, currently an associate. I joined 1 year ago after residency. I started with 60k as base and after 3x production, i went into 100% commission at 30% rate. I love this practice , the people, and the schedule. Contract included 1k CME, malpractice, association dues, licensing, etc. No health insurance It took me several months to get to commission, it was very slow at first (as expected). Kind of felt i did my own marketing during down time after I started. What would be a good percentage to ask for when 100% commission. I took the offer without much knowledge about how all this works.

I don't understand how people can take such a salary. Seriously, there are midlevel providers that make >2x that starting. There is nothing wrong with making 60k. However, accounting for the skill set, opportunity cost forgone, and most importantly the ability to collect a significant amount of money, you're getting screwed over. If your employer won't give you health insurance and you have to fight with them to get a commission, they are going to screw you over with the buy in (if there even is one). Also, the clinic seems very low volume. Time to jump ship.

 

[hypermobility]

I am currently part of 2 pod practice, currently an associate. I joined 1 year ago after residency. I started with 60k as base and after 3x production, i went into 100% commission at 30% rate. I love this practice , the people, and the schedule. Contract included 1k CME, malpractice, association dues, licensing, etc. No health insurance It took me several months to get to commission, it was very slow at first (as expected). Kind of felt i did my own marketing during down time after I started. What would be a good percentage to ask for when 100% commission. I took the offer without much knowledge about how all this works.

hopefully you marketed yourself and not the practice!

 

[DrMaseofBase]

I’m part owner of a large group practice in the Midwest. We have all of our associates at straight up 30% eat what you kill. We also provide a nice comp package with health insurance, 401k match, cme, professional dues etc.
From an employer side, we are probably 3-5% too high but it’s working our well otherwise.
Our newest associate cleared $150k In his first year of practice

 

[Utvolsdpm]

I’m part owner of a large group practice in the Midwest. We have all of our associates at straight up 30% eat what you kill. We also provide a nice comp package with health insurance, 401k match, cme, professional dues etc.
From an employer side, we are probably 3-5% too high but it’s working our well otherwise.
Our newest associate cleared $150k In his first year of practice

Just from my experience I would aim for a higher percent as an employee. 40-42% isn’t unheard of...

 

[SnozzBerry]

I don't understand how people can take such a salary. Seriously, there are midlevel providers that make >2x that starting. There is nothing wrong with making 60k. However, accounting for the skill set, opportunity cost forgone, and most importantly the ability to collect a significant amount of money, you're getting screwed over. If your employer won't give you health insurance and you have to fight with them to get a commission, they are going to screw you over with the buy in (if there even is one). Also, the clinic seems very low volume. Time to jump ship.

Those careers making 2x more are probably much more competitive than podiatry. I guess there is a reason for that. These numbers are scary...

 

[dtrack22]

We have all of our associates at straight up 30% eat what you kill. We also provide a nice comp package with health insurance, 401k match, cme, professional dues etc.
From an employer side, we are probably 3-5% too high but it’s working our well otherwise.

If you are comparing your practice to other podiatry practices then you may be right. If you are comparing your payment structure to other medical specialties then you are still low. To me 30% seems reasonable only if a practice is offering the benefits described above. Because most practices I've talked with, worked for, etc. do not...40% is what I'd be looking for. Health insurance (actually provided, not subsidized so the employee still pays hundreds if not $1-2k per month) and retirement benefits would be the biggest overhead costs for the new doc, other than payroll. Those are bigger $ benefits. CME, professional dues, etc. are small costs that should be covered by a new associate's production very quickly.

 

[toomanytoes]

I’m part owner of a large group practice in the Midwest. We have all of our associates at straight up 30% eat what you kill. We also provide a nice comp package with health insurance, 401k match, cme, professional dues etc.
From an employer side, we are probably 3-5% too high but it’s working our well otherwise.
Our newest associate cleared $150k In his first year of practice

i definitely don't have the same benefits, no HI, or 401k. I didn't even reach close to 100 k the 1st yr (my production: 250K ish). Appreciate your thoughts. I am not even sure how much overhead it would cost for an associate to be there.

 

[dtrack22]

my production: 250K ish

Yeah, they didn't need a new associate. But they found one, they made a little money off of you without taking much given your salary and lack of benefits, life is good...