Wow, Thanks for overwhelming replies :) So it is not a bad deal at all.
Do I need to mention anything else before I sign up the contract? (ie. bonus, car park, etc) On Feb 10, 7:23 am, Phill Coxon <[email protected]> wrote: > On Mon, 2009-02-09 at 21:57 +1300, Craig Cochrane wrote: > > As a business owner I am shocked that someone would offer a % on turn > > over. Turn over does not mean profit. You can turn over 20k per month and > > only make 2k profit or no profit! Then to give away a % of turn over is > > very generous indeed. > > Paying a % of turnover can work if you have a very clear idea of what > your expenses and you know that those expenses aren't going to change by > much. > > Business owners usually would much rather pay a % of profit. > > However, a % of profit can be risky to an employee because they have no > control over the expenses. > > I've worked with companies where the directors would waste thousands of > dollars on overseas travel, expensive "business" meals, buying unneeded > items all claimed as business expenses etc. > > Even though turnover was high, profit was very low. > > Before accepting a % of profit offer I would want an agreed list of > expenses with some clauses about unexpected large expenses being > independently reviewed etc. > > One advantage of % of turnover is that it's extremely easy to calculate > on a monthly basis. % of profit often has to wait until the end of the > financial year. > > I've been on both sides (employer / employee) of this situation and it > can work very well but make sure you have a very clear contract. --~--~---------~--~----~------------~-------~--~----~ NZ PHP Users Group: http://groups.google.com/group/nzphpug To post, send email to [email protected] To unsubscribe, send email to [email protected] -~----------~----~----~----~------~----~------~--~---
