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Ask HN: What percentage of a software company's profit should go to salaries?

3 points by aadilrazvi · 4 comments


4 threads
FigBug

Profit can't go to salaries, or else it wouldn't be profit.

If the question is actually revenue, it completely depends on the business. How much marketing, sales, support etc the software requires.

mattwritescode

Should be what percentage of revenue should go on pay.

Profit is what is left once all costs have been taken from revenue.

rch

Have a look at how W. L. Gore and Associates is structured sometime.

ye

Trick question.

Profits are calculated after salaries are paid.

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