3 ms·
The salaries are much lower compared to the large sales contracts because the company is compensating you for uncertainty. If you stick with a company, you're
by i_dont_know_ 9y ago
The salaries are much lower compared to the large sales contracts because the company is compensating you for uncertainty.
If you stick with a company, you're guaranteed whatever your salary is even if the company doesn't make any sales. If they're doing really well in terms of sales and contracts, then they pocket the difference, but if they're not, you pocket the loss.
I personally agree with the author that it's worth getting paid for the uncertainty with your own company (in most cases the rewards outweigh the risk assuming you have enough to float on for a year or so while you're learning), but some people find that stressful and are willing to pay a pretty hefty premium for that certainty of a regular monthly check.
- JoeAltmaier 9y agoEvery contracting company I worked for, had me full-time on projects. If they didn't have work for everybody, they laid off. They covered their 'risk' that way. Its a hoax that they took 25% (or more) to cover 'risk. It was to cover their vacation home payments.
- AstralStorm 9y agoThey were covering the risk of default (Or rate adjustment) on their loans. Whether said loans were necessary is another matter.