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If that means the pace of developing new things for the business slows down, that’s what that means. This right here is what stops most companies from doing mo

by dvtrn 6y ago

If that means the pace of developing new things for the business slows down, that’s what that means. This right here is what stops most companies from doing most things that benefit the employee more than it does the almighty “revenue”.

Spartan-S63 6y ago
But most software companies, nowadays, are supported by subscription revenue, so this should be less of a concern than ever before.
- dvtrn 6y ago
  Absolutely agree. Should be. In your experience is it the case?
- vnorilo 6y ago
  What portion of those "subscriptions" are just first payments of a trial users forgot to cancel, and what percentage of employee time is devoted to tweaking the funnel to get more of the same (conversion rate)? This may be cynical, but both are significant for many mobile app businesses.
PragmaticPulp 6y ago
That “almighty revenue” isn’t just a variable in a spreadsheet. That’s the source of your paychecks. It’s the money in the bank that keeps the company afloat during down quarters. It’s the number that needs to go up by a sufficient margin before your team can hire another person to help out. It would be an interesting experiment to offer half-time positions with half-pay (ignoring fixed costs that make the half-pay/half-time job more expensive). I doubt many people would take that deal.
- dvtrn 6y ago
  I’m absolutely aware that’s where my paycheck comes from. I’m simultaneously and acutely aware that the exact rationalization above is also used to excuse poor decision making In some companies that has real human consequences that happen to exist parallel with ‘getting a paycheck’ and those consequences and the behavior behind them are no less worthy of critique just because ‘paycheck’. These are my ethics. You don’t have to share them, I’m not here demanding that you do. I’d just rather dispense with the obviousness of “but that’s how you get paid”. Of course it is.
- bsg75 6y ago
  Recurring revenue should be the source of compensation. Obsession with revenue growth is what drives poor staffing decisions: "We can't hire because net new revenue is down", but doing more requires more people.

by dvtrn 6y ago

Spartan-S63 6y ago

But most software companies, nowadays, are supported by subscription revenue, so this should be less of a concern than ever before.

dvtrn 6y ago
Absolutely agree. Should be. In your experience is it the case?
vnorilo 6y ago
What portion of those "subscriptions" are just first payments of a trial users forgot to cancel, and what percentage of employee time is devoted to tweaking the funnel to get more of the same (conversion rate)? This may be cynical, but both are significant for many mobile app businesses.

PragmaticPulp 6y ago

That “almighty revenue” isn’t just a variable in a spreadsheet. That’s the source of your paychecks. It’s the money in the bank that keeps the company afloat during down quarters. It’s the number that needs to go up by a sufficient margin before your team can hire another person to help out. It would be an interesting experiment to offer half-time positions with half-pay (ignoring fixed costs that make the half-pay/half-time job more expensive). I doubt many people would take that deal.

dvtrn 6y ago
I’m absolutely aware that’s where my paycheck comes from. I’m simultaneously and acutely aware that the exact rationalization above is also used to excuse poor decision making In some companies that has real human consequences that happen to exist parallel with ‘getting a paycheck’ and those consequences and the behavior behind them are no less worthy of critique just because ‘paycheck’. These are my ethics. You don’t have to share them, I’m not here demanding that you do. I’d just rather dispense with the obviousness of “but that’s how you get paid”. Of course it is.
bsg75 6y ago
Recurring revenue should be the source of compensation. Obsession with revenue growth is what drives poor staffing decisions: "We can't hire because net new revenue is down", but doing more requires more people.