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

3 points| aadilrazvi | 12 years ago

4 comments

order
[+] FigBug|12 years ago|reply
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|reply
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|reply
Have a look at how W. L. Gore and Associates is structured sometime.
[+] ye|12 years ago|reply
Trick question.

Profits are calculated after salaries are paid.