Last month, Startup Compass shared the results of a survey, helping to answer one of the hardest questions a growth company faces, “What determines founder salary levels?” There isn’t a set formula, but there are many online benchmarking resources (Compass.co and Payscale) that allow entrepreneurs to compare and justify the salary-setting decisions they make.
As Startup Compass articulates, revenue is the greatest predictor of founder salary. Until a company makes more than $10k per month in revenue, the average founder salary does not break the $50k mark, and not until the company reaches over $1 million per month in revenue, does the founder salary break $100k.
Experience still means something — especially in the startup world — and this is reflected in the salary chart below.
Clearly, based on this survey data, entrepreneurs don’t work at startups for salary alone. Passion for the work, a challenging work environment, the ability to invent and reinvent are all reasons for working at a startup. Tell us the main reason why you (or why you would like to) work at a startup. Share your thoughts below…leave us a comment.