sns-network-solutions/businesses/01-infrastructure/operator-compensation-proposal.md

# 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.