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I agreed with everything up until this: "Profits are distributed directly to developers on a quarterly basis, weighted by dollar-hours contributed." The proble
by mbesto 12y ago
I agreed with everything up until this: "Profits are distributed directly to developers on a quarterly basis, weighted by dollar-hours contributed."
The problem is, one hour of my time, regardless of my seniority, might have a variably higher output (or "contribution") towards the profit of the business than someone else. Until there is a way to directly translate every hour of dev time to profit (as a proponent of revenue or cost), this model quickly breaks down.
I hate to be a pessimist on this subject, but I don't see any rational way to solve this problem. The closest model to this I can see working is https://assembly.com/ https://assembly.com/
- warcher 12y agoProfessional services partnerships have been around a long time. This is pretty well trod ground for law firms and medical practices. I don't understand why we'd need to reinvent the wheel here.
- walshemj 12y agoLimited liability and with a coop everyone is a member not just the few partners at the top. I should say there is normally a probation period for new employees before they become members
- walshemj 12y agoCoops should distribute dividends on a equal basis or its not a real coop. Not all coops have flat pay structures either your mistaking profit share with pay.
- bduerst 12y agoYour pay as a senior developer is already adjusted for your immediate contribution to revenue. Profits are trickier because there are a range of factors (more than just revenue) that contribute to it.
- erichmond 12y agoCorrection: This model only breaks down if it's built around people who think like you. Not saying there's anything wrong with your line of thought, but it's not accurate to assume because you specifically are concerned with "who's providing what value" that others would be too.