You know when there's a partnership of, say, four people, everyone gets 25%?
And then you add another partner and now everyone only gets 20%?
They/teachers/people compare it to having a pie, and if you cut it into more slices, each piece gets smaller.
Therefore, everyone gets "a smaller piece of the pie".
I don't like this analogy, though, because in reality, you could just get a bigger pie and everyone could have as much pie as they had before.
Food.
For.
Thought.
And the Dewey decimal system is your friend,
TWS
Depends why they added another person. Does the new person make it possible to make more money, so you could buy a larger pie? I hope so.
ReplyDeleteHopefully, additional partners would increase billings. But the only way that someone doesn't lose is if the billings are proportional. Like, if 4 partners bill $100k, the only way for them to stay at 25k each is if the new partner also brought in 25k. Any more, and the new partner loses, any less, and the original partners lose.
ReplyDeleteIn summary, partnerships are not pies.