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Bonus Tips

As dental professionals, many have needed help figuring out the right bonus system for their offices. We wanted to share what has worked in our office. We ensured a balanced approach where the staff is motivated to run through brick walls for the practice, and doctors were ecstatic to write that bonus check. The higher the amount, the better!


When setting up a BAM (Business Activity Monitoring) goal and bonus structure, it's important to establish clear and measurable objectives that align with your practice’s priorities.

The minimum Goal (BAM) is what it takes to pay all the office bills. Dentists have various expenses that they need to pay to operate their practices effectively. Here are some common expenses that dentists typically incur:


1. Rent or Mortgage


2. Utilities


3. Dr. and Staff Salaries and Benefits

4. Equipment and Supplies


5. Dental Laboratory Fees


6. Professional Fees and Memberships


7. Insurance


8. Marketing and Advertising


9. Administrative Expenses


10. Maintenance and Repairs


It's important to note that the specific expenses may vary depending on the size and location of the dental practice, the scope of services offered, and other factors. Dentists should consult financial professionals or accountants to understand their expenses and financial obligations comprehensively.


We work with the BAM method. BAM is fair for the doctors and the staff. We take the average of a 3-month cycle and bonus on that average. Here is an example:


BAM (Total Amount To Run Facility) – Monthly Collection Goal = Difference * 20% / full staff on bonus = $ Bonus amount.


Example: BAM: $85,000 is your monthly expenditure. 3 Month cycle = $255,000

                Monthly Goal: $100,000 is your monthly Goal for collections. 3 month cycle = $300,000

                Actual Collection 3 month Avg: $103,258 has been your monthly goal average

Calculations: $85,000-$103,258 = $18,258 *20% =$3651.60/5 = $730.32

                         BAM - Act Coll. =    Diff.    * %    = Bonus amt.= Bonus that month


Bonus Criteria:


1. Individual Contributions

2. Team Collaboration

3. Quantitative Results

4. Continuous Improvement


As clinicians, we feel great about this bonus structure. The practice is paying all the bills first (including the doctor's salary) and setting a realistic goal collaboratively with the team. It is imperative to know your numbers coming in and going out to adjust as necessary.

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