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

#1

Post by aadilrazvi » Wed, Feb 12, 2014, 11:41 PM UTC

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

#2

Post by ye » Wed, Feb 12, 2014, 11:43 PM UTC

Trick question.

Profits are calculated after salaries are paid.

#3

Post by rch » Wed, Feb 12, 2014, 11:54 PM UTC

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

#4

Post by FigBug » Wed, Feb 12, 2014, 11:57 PM UTC

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.

#5

Post by mattwritescode » Thu, Feb 13, 2014, 10:29 AM UTC

Should be what percentage of revenue should go on pay.

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