Startup Salaries

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cpamonies

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Jan 6, 2012
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How are small startups hiring such large teams "without the revenue" ?

For instance: CrushADS.com
(salary x 16 = ?); as a cpa network i have never heard about, i don't think they earn enough gross revenue monthly to pay that many salaries..?

I see many of these "teams" at tech startups and don't understand it.
 


Angel investors, business loans, wealthy owners, owners with balls of steel and a bunch of credit cards
 
affiliate managers may be paid, (sometimes) only a commission based salary in that case you can have a team of 100 without needing revenue for salaries.
 
I heard that HBWA was started on nothing but massive quantities of semen. Could just be a rumor, but I wouldn't put it past them.
 
r3p1v said:
They were representing some big brands at 1 point.
Click to expand...

not_this_shit_again.jpg
 
cpamonies said:
How are small startups hiring such large teams "without the revenue" ?

For instance: CrushADS.com
(salary x 16 = ?); as a cpa network i have never heard about, i don't think they earn enough gross revenue monthly to pay that many salaries..?

I see many of these "teams" at tech startups and don't understand it.
Click to expand...

Seeing as I run Crush Ads, I guess I am qualified to chime in here.

Our core team is about 8 people and in addition we share accounting, some tech and other resources with our sister company that has been around for over 2 years and operates mostly outside of the affiliate space. We started off with just me and 2 other people (along with the shared resources) back in June and have grown as our revenue has allowed us to.

We definitely wouldn't have been able to grow that fast without the backing of our sister company... it's allowed us to make sure that since the beginning we can pay our publishers weekly without having to sweat the advertisers paying late.

And you may have never heard of us, but the team is comprised of people that have been in the biz 10+ years. That experience allows us to bring a lot of established relationships to play and skip making rookie mistakes. Bringing on the "right" experienced people also means they are covering their salaries a lot faster than having to build and train a team from scratch.

As for other start up networks, I have no idea how they do it without some serious financial backing... unless of course they just have a network full of rebrokered offers so they can get weeklies from the other networks to cover cash flow. Running a network does take some serious liquidity. For the record, we are definitely covering our salaries, publisher payments and other expenses all without any credit lines or loans.
 
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