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This seems to be a trend among many highly paid fields: - Many doctors earn 100k or 3-400k depending on their field. - Many small business owners earn <100k o
by jtfairbank 10y ago
This seems to be a trend among many highly paid fields:
- Many doctors earn 100k or 3-400k depending on their field.
- Many small business owners earn <100k or make a killing, depending on their field, goals, and success/luck.
- 9 out of 10 startups outright fail or aren't successful enough to compensate founders & employees for the opportunity cost.
- xapata 10y agoIt's hard to tell what the distribution of income is without good data. I'm skeptical that normal, non-startup businesses fall into this pattern. I'd expect more of a log-normal for most industries. The log-normal also applies somewhat for lawyers. The partners of big firms make millions annually. As long as we're getting into nuance, I should add that the two-peak distribution is most clear for lawyer starting salary, not long-time professional. You either go top firm or not.
- jtfairbank 10y agoGreat points all around! The reason I think small businesses are relevant is that the founders/owners own the entire business. They either lose money, break even, or make money. In the sucessful small business cases where they make money, since they own 100% their profit requirements for a good return are far lower than those of a startup. I'd guess it's still a power law scenario (just with less amplitude than startups).