I follow two ideas based on my conversations with other breeders on this issue - when numbers are small (say ten shrimp total), I limit the number of males to one or two with 8 females, and then cull all the male offspring and leave the females to build up the numbers of the colony.
When colony is larger, I have a couple of really good males with lots of good females, then cull the offspring when they reach around 10mm, but you can already tell apart individuals with really good grades and really bad grades by this stage. I cull anything that doesn't reach a high grade (see SKF standard guides) and select only a few individuals to remain with the colony. The remaining high grade shrimp get sold. This might be seen as a bit hardlined - why don't I also sell/give away the mid and low grade shrimp and just cull the culls?
The reason is simple. Shrimp breeders have a responsibility to maintain the quality of the shrimp in Australia. Selling lower grade shrimp means that lower grade shrimp will be bred more often, leading to a downward spiral in the quality of shrimp available in Aus. Case in point, has anyone seen the quality of common red cherries lately? The top breeders stopped breeding them to move onto more lucrative/difficult shrimp, so every man and his dog started breeding with no consideration for quality, and now you are hard pressed to find anything even close to high grade. most stuff you see in shops are, at best, low grades and mostly culls with so little red you could barely call them red cherries.
Now some people might suggest that you can give low and mid grades away with the understanding that they won't be bred or sold. Unfortunately there are very few people who I completely trust in the hobby and they breed for quality anyway.