Episode notes
“How much should I be paying myself?”
If you’re an agency owner or partner, you’ve probably asked that question more than once. In this episode of Creative Outcomes, Upsourced partners Ryan Watson and Craig Baldwin break down what partner compensation should look like in a modern agency.
We get into:
- How to think about “the maximum you can pay yourself” without starving the business
- Why cash reserves and forecasting are critical before you touch distributions
- The difference between S corps and partnerships when it comes to salary vs. distributions
- How often to run profit distribution calculations (monthly vs. quarterly vs. annually)
- Why borrowing from client prepayments or lines of credit to “pay yourself” is a huge red flag
- The tough question: “At what point am I better off just getting ...