For those who are still considering paying a percentage of their gross as “rent”, consider the numbers...
If you pay a percentage of your gross as “rent”, then the more you earn, the more you’ll pay.
Example:
$30,000 gross at 50% “rent” = $15,000 in rent and $15,000 to pay taxes, expenses, yourself.
$60,000 gross at 50% “rent” = $30,000 in rent and $30,000 to pay taxes etc.
You’ve doubled your income, but you’ve also doubled your rent. You have doubled your “rent”!!! Those long days, that extra work should mean you benefit. Instead, you’re working longer and harder to benefit your “landlord”.
If you’re not convinced, here’s what happens with standard, normal, typical rent.
Rent is a set amount of money paid to use something for a set amount of time.
Example: $1000/month to rent a space = $12,000 in rent a year.
$30,000 gross - $12,000 rent = $18,000 to pay taxes, expenses, yourself.
$60,000 gross - $12,000 rent = $48,000 to pay taxes, etc.
See what I mean? You just got a whopper of a raise!!!
It’s a lousy deal for a groomer to pay a percentage of their gross as “rent”. Don’t do it. Math might suck, but it doesn’t lie.
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