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The SV salaries are why you're seeing platform B2C companies lead the pack and build full engineering teams in the Bay Area. For many B2B, especially in non-pla
by bretpiatt 8y ago
The SV salaries are why you're seeing platform B2C companies lead the pack and build full engineering teams in the Bay Area. For many B2B, especially in non-platform markets, building hybrid teams (or building completely outside of SV) with Founders in the Bay and scaled operations often outside the US.
As an example for NFLX with $2.2M revenue per employee ($15.8B rev / 7,100 FTE) if they could save $150,000 per employee it's only $1B to the bottom-line. By hiring "the best" and keeping operations as simple as possible paying more per employee may actually be financially better for them too.
- conductr 8y agoIdk, that “only $1b” is an annual bump to the bottom line. Net income only crossed into the B’s for the first time in 2018. Was significantly less in prior years. The question is how much growth would it take to add another B and how long would it take. At this point, is the market even that big? Also, Netflix is a great example of a product that could be engineered anywhere with US based design/management (if you’re of the opinion that innovative ideas start here). Especially since they’re on AWS for infra.