In this video, the speaker recounts how he transitioned from bookkeeping for painters to co‑founding a painting contractor business that operates on a subcontractor model. He partnered with a colleague who acted as both production manager and salesperson while the speaker handled marketing, administration, and backend tasks. To determine fair compensation, he consulted other painting businesses and adopted a revenue‑share model: roughly 7.5% of total revenue for production management and another 7.5% for sales, totaling about 15% of revenue. He notes that industry norms typically range from 5% to 10% for each role. This compensation framework proved effective for his operation.
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I was already doing bookkeeping for painters and I had learned a lot from other painting businesses, like how to ensure a painting business and stuff. And so I was like, hey, you know, you could run a painting business, I can help you out. So we basically started something. I was the owner, but he was basically operating it. So I kind of started that business with him as the production manager and the salesperson right off the bat. And I was just basically making sure the marketing, the admin, the backend stuff was all good to go. He's in a different city running it. So I had to kind of figure out, and also working with other painting businesses, figure out how much to pay him. Like he's doing product management, he's doing sales, how much should I pay him? Because we were using the subcontractor model at the time. And what I kind of used, I stole this from painting business owner smarter than me, had already figured out about 7.5% for what he produced and about 7.5% for what he sold, which came out to about 15% of total revenue. So when I say 7.5%, what I mean is 7.5% of revenue. So if it's a, you know, a $10,000 job that he produces, we get 7.5% for producing the project management for that job, which, you know, $750. And then for the sales piece, I think we did 7.5%. That's typically what we see is between 5 and 10% for each of those roles. For a production manager, between 5 and 10% of what they produce, and for a salesperson, between 5 and 10% of what they sell. So that's using those numbers that helped me kind of nail down how much should I pay him to basically run the business. And that ended up working out pretty well. And I've seen it