billpaetzke
Joined 16 years ago
Joined 16 years ago
Casual discussion about tech (especially Apple)
I'm just saying that there is significant ego on the developer's side of things.
In the early days, we were all about making a great place to be a software developer in New York City.
Yep, that was all there was to it...
I...decided to start a company with my buddy Michael Pryor. Making a nice place to work was our primary objective. We had private offices, flew first class, worked 40 hour weeks...
The tagline was “building the company where the best software developers want to work.”
Source:
Figuring out what your company is all about [http://www.joelonsoftware.com/items/2009/11/01.html]
The average WeWork space is 600-900 USD/month for a single-person office in NYC and SF. And there is a lot of turnover amongst coworking businesses that offer space for any cheaper. So, below 600/mo does not seem to be viable, at least in these two markets.
If you offer to reimburse all employees' coworking leases, at an average of 600-900/mo, then your total office expense would exceed your prior 7k/mo after about 10 employees.
Automattic, another distributed company, offers a stipend of 250/mo toward coworking rent. Basecamp (aka 37signals) offers 100/mo. In both cases, these are certainly better than nothing but are only a fraction of the market rate.
https://remote.co/company/automattic/
https://m.signalvnoise.com/employee-benefits-at-basecamp-d2d...
Assumption: 40% is the federal + NY state + NY city income tax for a six-figure earner
200K * 0.60 = 120k of net income = 10k/month net income
3k rent / 10k monthly net income = 30% of net income
As of 2014, their salary cap was 137k & 15k bonus: http://www.nytimes.com/2014/06/01/business/unlocking-secrets...
Perhaps those numbers are average or even below average for the Bay Area. Furthermore remember those are global caps, so unless you are in the top pay grade in the company, you'd likely make less, I assume.
Consulting requires linear increase of resources. Software product requires logarithmic increase of resources. Therefore product business is more efficient to scale than consulting.