Daniel Presley is the author of four best-selling books on entrepreneurship in the world; and is the co-founder of Dent Global, (a leading commercial enterprise) and the technology and marketing platform ScoreApp.
He believes that the revenue per person model is an interesting metric to judge the success of a company. This is the total revenue divided by the total number of employees who are with you full-time. The higher the value of this number, the higher your business will earn without needing more people; And in a way, it increases the productivity of human power to its maximum potential.
Daniel Presley continues to mention technology-based businesses, and he believes that this model of companies earns more income per employee. For example, Apple, with 130 thousand employees, earns more than 2.7 million dollars per person! Or Google, with more than 100,000 employees and $136 billion in revenue in 2018, earns more than $1.3 million per person. Facebook also has 1.4 million dollars in revenue per employee with 40,000 employees and a revenue of over 56 billion dollars per year. Microsoft and Walmart are also in the next places.
A business with $10 million in revenue with 40 people ($250,000 per person) will have a different future than a business with 150 people with the same revenue ($66,000 per person). In fact, both businesses boast eight-figure revenues, while the smaller team will be hiring more people next year, and the larger team will be struggling to stay afloat and likely starting to downsize.