FORUM WORKSHOP
Forum Workshop
Itʼs hard to know how
7
0 much money the editor
of a magazine is worth
•
since there are no diA rect sales to measure.
U But if the content of the
G magazine enables the
U owner and sales force
S
T to sell advertising to
support the publication,
2
0 the editor (and art di1 rector and production
4 assistant) are worth a percentage of the income
the company generates. Lots of staff support
jobs arenʼt directly related to sales. But if you
had to do all the work your bookkeeper or secretary does, and you as the owner are the companyʼs primary salesperson, then you have to
determine worth in another way: How much
less could you sell if you had to do those jobs?
And what would it cost you in management time
that might cause you to be less effective if you
had to do those jobs? And what would it cost
you in management time that might cause you
to be less effective if you had to do those jobs?
Remember, when you started, you did everything. As your business can afford it, you hire
help so you can spend your time more productively. These staff people become part of the
overhead, like rent and utilities. Their presence
enables you and your other salespeople to be
more effective, which generates income and
profits. These support people are “worth” a percentage of the total profitability of your company
because they enable you to do things to generate income, rather than handle so many necessary, but not revenue-producing, chores.
continued..
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