Profit Sharing
1 comments
Honestly this depends on the company because its a question of confidence. Do you have confidence that the company will be generating real revenues and how bad to you need the money.
If you have a family and need to have guaranteed income at set levels, then you should be conservative and pick option 1.
But, to put it in perspective. To see what the back-of-the-napkin calc is for the maximun annual total income.
1. 140k no matter what 2. 140k Max (60 x 2 = 120k plus the max 20K) This option sucks balls. 3. 150k Max (50 x 2 = 100k plus the max 50k) 4. 160k
If you have a family and need to have guaranteed income at set levels, then you should be conservative and pick option 1.
But, to put it in perspective. To see what the back-of-the-napkin calc is for the maximun annual total income.
1. 140k no matter what 2. 140k Max (60 x 2 = 120k plus the max 20K) This option sucks balls. 3. 150k Max (50 x 2 = 100k plus the max 50k) 4. 160k
(1) Hourly Rate $70; no profit sharing
(2) Hourly Rate $60; 1% of net revenue; capped at $20,000 per year
(3) Hourly Rate $50; 2.25% of net revenue; capped at $50,000 per year
(4) Hourly Rate $40; 5% of net revenue; capped at $80,000 per year
Also, the hourly rate bumps up to $70 automatically once there is $1.5M of cumulative revenues.