What would you expect total compensation to be for a partner in US commercial health that generates $8-10M in revenue at 70% gross margin?

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Short answer. $500k - $2.5m

Really depends on the firm, practice, and a bunch of other factors.
- Is the $8m your relationship or was it someone else’s?
- Did you bring in the client or is it an existing firm relationship?
- Actual $8m+ solely originated is very different than working with multiple other partners to sell $8m
- Many firms (for example, big4) double/triple count sales credit
- Type of work matters also, a single $8m SAP implementation is very different than originating four $2M strategy projects
- Did you lead the delivery of the work or hand it off?
- Most importantly, it depends on the firm’s comp structure… is your bonus directly tied to sales, is it a partner profit share, how much equity do you have, tenure, pension contribution, or is 90% of your comp guaranteed?

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I think great answer as well A&M1. BCG3 - I don't thin it is near as clearcut on going on your own. Once you get above certain revenue levels, you need skilled other people to help execute. Plus, the margin here is gross margin. You go on your own, you need to both pay for and deal with things like insurance, maybe rent, recruiting, etc.

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How would anyone be generating 70% margin in this economy?

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Gross margin has a set definition. It is revenue minus COGS

It does not vary by industry or anything else.

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70 percent margin??? I'm guessing you're either selling MBB tier strategy or NVidia H100 GPUs

likefunny

Big 🧠 comment

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Operate has a lot of margin. My implement deal transitioned to operate at 74% margin last year. $40M over 5 years.

likefunny

This is really low revenue for a partner unless they’re at a pretty small firm so likely in the mid 6 figures

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I don’t think BCG1 is an equity partner - there is a lot of nuance but in a partnership with 70% gross margin one would have to believe that the economic value of that work is in the millions so if you the partner are not getting that value who is?

The more senior partners? Maybe? Though that would be quite a tax rate

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These targets seem like YAL1 targets if its big 4. ~450-500K would be my guess.

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