a percentage deal or a post-production payment plan

[ShannaGrace]

I have someone willing to help me with Graphics and Webdesign and marketing for my product and she is willing to take a percentage deal or Post production payment plan. I have never done anything like this, so I am unsure what a fair deal would be. I have asked her for some guidelines, from other deals she has done and the amount of work she thinks this will entail, but I haven't gotten a response from her, and I would like some outside input into what are fair guidelines and the plus or minus of the two options.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[theag]

Do you really want to give a percentage of your multi million dollar company to somebody who did the first graphics and design? I thought so. So there's your answer on that.

Payment plan on the other hand sounds like a good offer.

Do you really need her though? Graphics, webdesign and tech can be done for very cheap (few $ a month) with sth like shopify or wordpress depending on your business. And marketing shouldnt be outsourced, thats your job.

Also, if she doesnt respond now, she will probably do a pretty bad job for you anyway. Next.

 

[ShannaGrace]

Well I am not outsourcing marketing. but would have her to help me, creating and implementing the plan, plus branding. I don't even know what Post production payment plan, would be? Would that be a contractual amount, or depending on the amount of work she does.

 

[ShannaGrace]

Well I am not outsourcing marketing. but would have her to help me, creating and implementing the plan, plus branding. I don't even know what Post production payment plan, would be? Would that be a contractual amount, or depending on the amount of work she does.

Do you really want to give a percentage of your multi million dollar company to somebody who did the first graphics and design? I thought so. So there's your answer on that.

Payment plan on the other hand sounds like a good offer.

Do you really need her though? Graphics, webdesign and tech can be done for very cheap (few $ a month) with sth like shopify or wordpress depending on your business. And marketing shouldnt be outsourced, thats your job.

Also, if she doesnt respond now, she will probably do a pretty bad job for you anyway. Next.

@theag thanks for your reply. You are correct, if she can't give me an answer on what she thinks is a fair offer, which is her compensation, then what else will I be waiting on?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[darkjediii]

Here are some things to think about. Follow the logic behind the questions and it should help get to the formula you're looking for:

1) First, you have to ask - how much would her services be worth if you paid for it up front?

example: $1,500

2) Second, what incentive can you give her so that you do not have to pay up front?

ex1: $500/mo plus 5% of an sales until paid off
ex2: 20% of sales for x months

3) Alternatively, you can structure the deal in ways that it's mutually beneficial.

ex: She will do on-going design/marketing stuff for x% commission on sales until it pays of the initial design work then it drops down to x% until a specified time period (ie 6 months - renewable)


At this stage, it's recommended to always put an expiration date on your contracts 1mo, 6mo, 1 year, whatever, you can always put in the option to renew it. But more than likely, your business and business needs will change, so do not get stuck in a long term agreement you can't get out of.

There's no "usual" structure for these type of things, it's whatever you can hustle.

 

[ShannaGrace]

@darkjediii thanks that helps a lot.