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

3 points by aadilrazvi 12 years ago · 4 comments


FigBug 12 years ago

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 12 years ago

Should be what percentage of revenue should go on pay.

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

rch 12 years ago

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

ye 12 years ago

Trick question.

Profits are calculated after salaries are paid.

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