Computer consulting biz question.

[Ramzi's hairy chest]

5-6 years ago, two of my friends started a computer consulting business. They asked me to join and I said "sure". "Computer consulting" is more or less a glorified title to general PC repair at home and small businesses, plus network set up, website design... nothing large scale, nothing too professional. My job was to represent the company, do any aforementioned work and get a cut of the pay. 99% of the time, I find my own customers or I get summoned to do work by my friends in the company to work on someone's computer, which is 1% of the time. The company was comprised of college students, some with A+ certification, some don't.

That's pretty much the background of it. The question is, I was to charge $65/hour to the customers/clients and I got paid $25 of that $65/hour work. Do you think the company took too much money out of my work (or any other employees' work)? Some other info: The location was a suburb of Southern California, I got business cards from the company, no company shirts, I drive myself, etc.

[theantidote]

You should ask for a flat yearly pay such as 60k/year. If they can't provide that move on, usually with the right experience you can get 70k/year starting at a consulting firm.

[nextgenxbox]

$25 sure beats $12 doing the same at BBUY and CCITY. :)

But yeah, that's a huge ass cut they take. More than half, and you're doing all the work.

[moiety]

If you found your own clients, then I'd absolutely say you're getting the short end of the stick. Unless the company is providing you with benefits, or a substantial amount of clients, I see no reason not to just do things on your own. Personally, I came from a similar situation, except my company was only paying me $20 an hour. I dropped them, started my own home business, and now make $45 an hour all to myself. It's a much better situation.

[Ramzi's hairy chest]

It would be nice to ask for a $60K salary with benefits and whatnot, but it's only a minor business/consulting gig and it's not a full time job. I was doing it more for my friends than getting paid, so I'm not bitter about it.

@moiety: Thanks for the info about your background. I was curious about other people that experienced a similiar situation but never came across anyone that did.

[tokenuser]

Unless they are paying benefits, you are getting screwed.

Are they taking tax out (do you get a W-2 in time for the tax man)?
Medical?
Travel?
Advertising and throwing leads your way?

If you answer no to any of those. then you are DEFINATELY getting screwed. Can you produce time reports loggin your consulting hours with them. Ask them where the overhead goes.

[Ramzi's hairy chest]

Unless they are paying benefits, you are getting screwed.

Are they taking tax out (do you get a W-2 in time for the tax man)?
Medical?
Travel?
Advertising and throwing leads your way?

If you answer no to any of those. then you are DEFINATELY getting screwed. Can you produce time reports loggin your consulting hours with them. Ask them where the overhead goes.

As far as I can remember, the tax situation is that I act as an independent contractor/agent of the company, but yet I somehow represent the company (yes, it's somewhat contradictory, but I don't know exactly how they operate tax-wise.) I pay taxes (like anyone else) when I make over certain amount.

No, they didn't pay for medical.

Yes, they actually pay for travel expenses.

Advertising/throwing leads to my way: No.

I honestly didn't do much for the company and they didn't make much money from me at all. I'm not that great at grabbing customers. I know the company is a bit shady, plus I was treated like crap because of their incompetence. I didn't hang around my friend's company for very long.

[tokenuser]

Walk away from it ... but see if you can nab some of their customers at the same time.