Use it for both EC2 and SES. Our customers link their own SES account to send out campaigns, so the advantage of being on EC2 is that many of them don't pay a penny. Server costs is about 10% of our revenue, so will weigh up the pros/cons of moving in the near future, I'm sure.
Health insurance in San Francisco which according to my quick research using Blue Shield[1] is some of most expensive.
Most people who work at tech companies in the bay area don't pay for their insurance, or pay very little. It's just considered part of benefits.
I think they'd be shocked if they had to pay full retail price for it. Also, the government subsidies only apply if your making less than 50k a year, so most likely everybody would be paying full retail price if not for their employer.
[1] -
Blue Shield monthly cost for Silver 70 PPO
Downtown San Francisco $462.54
Downtown San Diego $388.22
Santa Barbara $372.58
Beverly Hills $342.53
$462 a month for insurance shouldn't be a back breaking amount for the average tech worker.
Even if you consider a very low salary of $100,000 and consider that health insurance is completely pretax (federal, social security, and medicare), that's only $308 a month out of your check if you had to pay it all yourself.
My point is that tech workers by and large aren't paying for health insurance themselves, their companies are. So it's easy to forget and be outraged when something is free, but when you're self employed this is a huge burden and expense.
Also, $462 a month anywhere outside of California in the US is a decent amount of money. Hell, even in California that's a car payment for a luxury high end car.
When I'm contracting and have to take my own insurance into account, I estimate 1800 hours a year. $462 a month translates to $3.08 an hour. If I can't bill an extra $3.08 an hour over a full time gig, why would I contract? If I can't make more than $462 a month being self employed than I could make by being a corporate drone, why would I be self employed?
I'm saying take that into account if you decide to be self employed. If you're not prepared to pay your own insurance when you decide to go out on your own, you're probably not expecting the extra 9% in self employment taxes....
I'm not a liberal or progressive - I'm a bleeding heart libertarian. For instance I don't believe in the minimum wage (libertarian) but I think the Earned Income Tax Credit should make up the difference and it should be a monthly credit so people can have a livable wage if they work (bleeding heart) and don't have a problem paying taxes if it helps people to help themselves.
I suppose it depends a lot on how much you end up paying in taxes. In Norway you'd pay between ~35-45% income tax (and the employer pays a little more on top of that) - that amounts to ~2600-3600 USD out of a monthly 8000 USD paycheck (100.000 USD/year). For that you get (mostly) free medical care, pay during sick-leave, free education for yourself and your children through college. It's certainly more than 500/month - but 500/month doesn't sound like that much assuming it will cover all kinds of illnesses, including things like life-term cancer treatment with followup even if you lose your job.
Do people seriously ever think that maybe not everyone likes working remotely? I have been working remotely for about a year from home and I plan on working from coworking space next month from now on.
Of course, I started working remotely because I freelance, but I actually prefer having an office away from home for working purposes.
We're all remote and most everyone works from a home office- except myself and one of my developers. Our combined office space leases (WeWork and Regus) in Seattle and Portland still don't eclipse what we pay the likes of AWS, DO, and Vultr.
At the moment, aggregate SaaS costs and data licensing but I expect marketing to eventually become the biggest cost after salaries (or even the biggest overall).
If you have access to a market research database you can get statistics on this kind of stuff for different industry sectors and different countries. For subscription services you may be able to get access via a public library or university library.
e.g. here's an estimate of costs in Australia's IT consulting sector, as percentage of total revenue:
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Because if so, there's plentiful of cheaper option where you could easily reduce your cost by 60-80%.
> We've helped over 10,000 businesses send over 1.6 billion emails
And you say
> we send around 150m emails a month
Assuming m to Million, your usage is atleast 10% of all emails that emailoctopus.com has ever sent, so you must be like 1 of their top 10 customers.
Wow.
What do you guys do that requires you to send 150 million emails a month? Not trolling, just curious.
Servers
Advertising
That's like a wholesaler saying the mark-up the retail store charges on their products is a business expense.
Those are dollars coming out of our customers’ wallets that don’t end up in our bank account.
If we can acquire an open web user instead of a walled garden user it increases our gross profit by 43%.
2. Marketing & Advertising.
3. Rent.
4. Employer Share of Payroll Taxes.
5. Other Insurance (eg. Workman's comp, General liability, etc.)
6. IT (Including AWS).
7. Legal & Accounting.
Most people who work at tech companies in the bay area don't pay for their insurance, or pay very little. It's just considered part of benefits.
I think they'd be shocked if they had to pay full retail price for it. Also, the government subsidies only apply if your making less than 50k a year, so most likely everybody would be paying full retail price if not for their employer.
$450 * 12 * 50 = $270,000
No wonder pharma companies in the US make a killing.
Even if you consider a very low salary of $100,000 and consider that health insurance is completely pretax (federal, social security, and medicare), that's only $308 a month out of your check if you had to pay it all yourself.
Also, $462 a month anywhere outside of California in the US is a decent amount of money. Hell, even in California that's a car payment for a luxury high end car.
I'm not a liberal or progressive - I'm a bleeding heart libertarian. For instance I don't believe in the minimum wage (libertarian) but I think the Earned Income Tax Credit should make up the difference and it should be a monthly credit so people can have a livable wage if they work (bleeding heart) and don't have a problem paying taxes if it helps people to help themselves.
I don't think many techies will be shocked to pay ~$500/month. I wonder how much salary you pay to your people.
Jumping down an order of magnitude we've got: software, bank fees/processing fees, insurance, taxes.
We were really happy when our salaries passed our hosting bills and stayed there.
Of course, I started working remotely because I freelance, but I actually prefer having an office away from home for working purposes.
After that it's hosting (we have no on-prem infrastructure), AWS is probably 85% of that cost.
We're all remote and most everyone works from a home office- except myself and one of my developers. Our combined office space leases (WeWork and Regus) in Seattle and Portland still don't eclipse what we pay the likes of AWS, DO, and Vultr.
2. Benefits
3. Contracting
4. Rent
e.g. here's an estimate of costs in Australia's IT consulting sector, as percentage of total revenue: