# SNS Infrastructure — Operator Compensation Proposal **Purpose:** A competitive pay proposal for the one **builder-operator** who will stand up and run SNS Infrastructure LLC. Reflects the actual plan: - Owner works this **part-time** (keeps a W-2 job). - A **~6-month small-business loan funds the operator's payroll runway.** - Labor is **project-based via Field Nation / Work Market** — not a payroll crew — until steady work justifies hiring more than ~2 people. - The operator is paid to **build the business to self-funding profitability within ~6 months**, with a bonus for hitting it. Supersedes the comp section of [`sns-infrastructure-hiring.md`](./sns-infrastructure-hiring.md). > Not legal/tax advice. Have an attorney draft the offer + commission/bonus terms > and a CPA confirm the loan and payroll treatment. --- ## 1. The Core Idea The loan buys **6 months of runway**. In that window the operator builds a book of project work (and ideally some recurring service) so that by month ~6 the business's **own gross profit covers the operator's fully-loaded salary** — i.e., it becomes self-funding and no longer needs the loan or owner subsidy. The bonus rewards reaching that line on time. Because you need someone to **build**, not just maintain, the pay must include **real upside tied to the revenue they generate** — a flat salary alone attracts an operator, not a builder. --- ## 2. Competitive Salary Proposal **Benchmarks (South Bend, 2026):** field service managers run ~$57–82k; operations managers average ~$72–99k (senior ~$99k + ~$10k profit-share); senior network engineers $80–110k. A hands-on builder-operator belongs at the **operations-manager level.** **Recommended package:** | Component | Amount | Purpose | |-----------|--------|---------| | **Base salary** | **$78,000/yr** ($6,500/mo); range $72–84k | Competitive, fundable by the loan for 6 months | | **Commission** | **10% of gross profit** on projects sold & delivered | The builder engine — pays them to bring in and close work | | **Build bonus** | **$10,000** for hitting the self-funding milestone (§4) | Rewards building it to profitability on time | | Vehicle | mileage reimbursement or ~$500/mo allowance | Lean — no fleet | | Tools/certifier | company-provided or reimbursed (~$5–12k one-time) | Contractors often bring their own | | Cert reimbursement | ~$1,500/yr | Retention + skills | **Why this is competitive:** the $78k base alone matches the local operations- manager market, and the commission + bonus push realistic total comp to **~$95–110k** if they perform — attractive to a strong builder while keeping your fixed cost at just the base. --- ## 3. Sizing the 6-Month Loan Keep the loan lean by using contractors for labor (no crew payroll) and minimal fixed overhead: | Item | 6-month figure | Notes | |------|----------------|-------| | Operator base ($6,500/mo × 6) | ~$39,000 | The core runway | | Employer burden (~25–30%) | ~$10,000–12,000 | Payroll tax, workers' comp, minimal benefits | | Tools + Fluke certifier (one-time) | ~$5,000–12,000 | Or rent the certifier to cut this | | Insurance (GL + WC), licensing | ~$3,000–6,000 | Get quotes | | Vehicle allowance / mileage | ~$3,000 | | | Marketing/launch + working capital | ~$5,000–10,000 | Website, cards, first-project materials float | | **Total loan target** | **~$65,000–$80,000** | Covers payroll + startup + a buffer | > **Note:** the loan funds the *operator's* pay and startup — **not** the > contractors. Contractor labor is billed inside each client project and paid from > that project's revenue, so it doesn't draw down the runway. --- ## 4. The Build Bonus — define "built it" precisely Tie the $10,000 bonus to a **self-funding milestone**, not a vague "grow it": > **Milestone:** the division produces **monthly gross profit ≥ the operator's > fully-loaded monthly cost (~$8,300)** for **3 consecutive months**, achieved > **within 6 months** of start. Suggested tiering so it's motivating *and* realistic (see the timeline caveat in §6): - **Hit in ≤6 months → full $10,000** - **Hit in 7–9 months → $6,000** - **Hit in 10–12 months → $3,000** After the milestone, the business is self-funding: the loan is repaid on schedule and the operator's base is covered by revenue, with commission continuing as the ongoing "act like an owner" incentive. --- ## 5. The Contractor Labor Model (Field Nation / Work Market) This is what makes 6-month profitability realistic: - **Scope high, dispatch flexibly.** The operator sells and scopes the job, then dispatches skilled techs on-demand via Field Nation / Work Market for the labor. - **Typical platform rates:** ~**$45–75/hr** (or flat per-site) for skilled low-voltage/network techs — **marked up in the client quote**, so each project carries its own labor cost and margin. - **Near-zero fixed labor cost:** you pay for labor only when a paid project needs it. No idle payroll between jobs. - **Hire W-2 only when justified:** once recurring/steady work reliably keeps ~2 people busy, convert your best contractors to employees. **Classification caution:** Field Nation/Work Market techs must remain **genuine 1099 independent contractors** — set the scope/deliverable, not their hours or methods, or you risk worker-misclassification liability. Keep this clean. --- ## 6. Total-Comp Scenarios (what the operator actually earns) Assumes ~40% gross margin on project revenue. | Scenario | Revenue built (yr 1) | Base | Commission (10% of GP) | Build bonus | **Total** | |----------|----------------------|------|------------------------|-------------|-----------| | **Floor (guaranteed)** | minimal | $78,000 | ~$0 | $0 | **~$78,000** | | **Target** | ~$300,000 | $78,000 | ~$12,000 | $10,000 | **~$100,000** | | **Strong** | ~$450,000 | $78,000 | ~$18,000 | $10,000 | **~$106,000** | The floor makes it safe enough to leave a stable job; the upside makes building it genuinely worth their effort. --- ## 7. Honest Risk Flags (read before you commit) 1. **6 months to profitability is aggressive** for B2B infrastructure — commercial sales cycles run 1–3 months per job, and you're part-time. That's exactly why the bonus is **tiered** (§4) and the loan carries a buffer. Don't bet the whole plan on hitting month 6 precisely. 2. **Salary-only won't attract a builder.** The commission is not optional — it's what separates "someone who runs jobs" from "someone who brings in jobs." 3. **Loan reality:** a brand-new LLC with no revenue history usually needs a **personal guarantee and/or collateral**; your steady W-2 income strengthens the application. Talk to a lender and to the **Indiana SBDC** (free advising, South Bend region) about SBA 7(a), an SBA **microloan**, or a bank line of credit. 4. **De-risk further with contract-to-hire.** Consider a short paid trial project (or a 1099 ramp) before putting the operator on the full 6-month W-2 runway — it confirms they can actually sell and deliver before the loan is on the line. 5. **Protect the asset.** Clients, phone number, domain, documentation, and vendor/ platform accounts stay in **SNS Infrastructure LLC** — plus a narrow Indiana **non-solicitation** clause (1–2 yrs). See the hiring plan §9. --- ## 8. Recommended Structure — Summary - **Base:** $78,000/yr (fundable for 6 months by a ~$65–80k loan). - **Commission:** 10% of project gross profit — the builder incentive. - **Build bonus:** up to $10,000, tiered, for reaching self-funding profitability. - **Labor:** Field Nation / Work Market contractors per project; W-2 only past ~2 steady heads. - **Target total comp if they succeed:** ~$100k — competitive locally and worth building for. - **Exit condition:** once self-funding (3 months of GP ≥ loaded operator cost), the loan is covered by revenue and you can turn attention to Business #2.