Hi everyone,
I have a question that has been bogling my mind...offcourse the owner needs to get the most money out of the company but i dont know how it goes so i presented 2 scenarios and i would like for you guys to tell me how you would split the money and why.
Scenario #1 :
The company had a project that generated 40.000$, there is 3 members? and there is a pot. Most of the work have been done by the owner but the members needs to get paid of the project and money also has to be stored in the pot and offcourse you have to get your cut.How would you split the money.
How i would do it :
I would get give each member 10%(a total of 30%) and i would put another 30% in the pot and i would give the owner 40%.
Scenario #2 :
The company generates 5.000$ from a monthly project, in this case everyone puts in equal work. just like the previous time the members needs to get paid, money needs to go in the pot and offcourse the owner needs to get more money then everyone because...well...hes the owner.
How i would do it : I would give every member 10%(30% as whole) and i would give the owner(25%) and the rest is for the pot.
How would you split the money and if possible why split it in the way you described?
Thanks in advanced.
How is the most better way for the owner to get paid
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Lil Margin
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Re: How is the most better way for the owner to get paid
Maybe Joel Spolsky's method can help you decide: http://answers.onstartups.com/questions ... 3326#23326
But ultimately it's a contract thing between the people involved.
But ultimately it's a contract thing between the people involved.
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Lil Margin
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Re: How is the most better way for the owner to get paid
I have read the article but i'm still a little lost in my case, because in my case there is only 1 founder and about 4 early employees.
So i would have to do something like : 50% for me and 2.5% for each member(10% in total)
That is what i understood from the article, pleas correct me if i'm wrong
So i would have to do something like : 50% for me and 2.5% for each member(10% in total)
That is what i understood from the article, pleas correct me if i'm wrong
Re: How is the most better way for the owner to get paid
Leave the generic business model articles behind and just be fair. For small businesses you wan't to keep a good deal of money available for the company, yet also pay your employees well so you don't loose them too easy. But still give yourself a modest amount, just not 5x more than everyone else combined... That, you can do when you're bank manager. 
Make your Employee's feel good for what they do and happy to do it for their share of the money. Generally counts for any great and successfull business.
Make your Employee's feel good for what they do and happy to do it for their share of the money. Generally counts for any great and successfull business.
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hybrid
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Re: How is the most better way for the owner to get paid
Employees get what they are assigned in their contracts. All the rest is for the founders. They have to put the money into the company anyway to keep it alive. So you just have to make sure that you have enough money to pay all those who have to get the money and keep the company running. All that is not used up somewhere is for the owner.