Fox
Legendary Contributor
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Forum Sponsor
Hi y’all. I recently encountered a business owner on Tiktok who claimed they run a business according to Marxist principles.
- They went from 0-mid 6 figures in revenue in 1 year and have 8 employees
- all employees get paid the same no matter their job including the owner (wage + rev share) which means as the business grows they get paid more
- all employees have ownership in the company. If the company sells all employees get a cut if the sale according to their ownership %
- many decisions are made collectively and not solely by the CEO.
They’re registering to become a worker co-op.
She also claims she’s never had any problems with hiring and all her employees seem to have boosted morale.
There seems to be a growing trend in these types of businesses popping up. What do you guys think?
Could these kinds of business models eventually outcompete the traditional ways of running a business? Want to have an interesting discussion about this.
It won't work, or at least you will be nowhere near as good as you could have been.
The short answer is you will be inefficient compared to the rest of your market.
You will be overpaying for the basic tasks lots of people can do and underpaying the key positions that need top talent.
This means you are losing resources in basic areas and losing results in key areas.
Here is someone who tried it before...
CEO Secrets: 'We tried paying everyone the same salary. It failed'
As part of the CEO Secrets series, Calvin Benton discusses his firm Spill's "open" salary policy.
www.bbc.com
She also claims she’s never had any problems with hiring and all her employees seem to have boosted morale.
In a job interview, people are unlikely to say this is an issue - but the top talent will politely bow out and go elsewhere.