Quote:
Originally Posted by jeffrey
Because there will always be someone willing to give a bit more money to make a bit more money.
If someone wanted to give your wife 25% on million dollar deals instead of 3% would she stay with the 3% people? or go for the bigger money?
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Yes... I know how economics works, thanks.
My point was in agreeing that shares of 50, 60, 80% are really out of whack... even though they are there and will continue to be.
Most companies outside of porn have to either use their profits to pay shareholders or re-invest in the business; thus you can't be giving away 50% of your revenue to the sales force. You need that money to keep the business going forward.
In porn, there are sooooooooo many 2-man outfits (wife as model, husband/boyfriend as photographer/webmaster,etc) that they have no issue sharing 50% or more. They typically have no intention of it being a forward going business... rather just a quick source of income for a few months to a year or two. You get enough of those as examples and the big programs then have to start competing at that level and then it just becomes commonplace. I don't agree with the percentages, but I don't have a choice and pay at those levels just like everyone else.