Payment or Percentage??
Long term profits or short term gain?
Just recently this has been a the forefront of my mind, i’ve had several groups contact me to work with them on some very interesting projects(those I took on I will report on when the time is right), some are offering a percentage in exchange for the developement, some are offering a fee plus a percentage, another is offering a fee or a percentage.
At first glance offering a percentage of profits instead of a fee for a build seems a bit of a raw deal, or shows a lack in faith in the product.
This was my belief until I was approached by my new client. They are intelligent people, with a good plan, an excellent site idea, a realistic time scale, and an understanding of what they want me too do.
They Offered both a fee for building the site and a percentage of profits. The Budget they had in mind was close to what I would have quoted so I took the project. As soon as there is something to see I will add a link here.
But what if a client is offering a percentage only? this can be a raw deal, you need to ensure you trust the people your dealing with. Dont be afraid of getting a solicitor to look at the contracts(a good pratice to do anyway). Also you need to define what you will do for the percentage and in what time frames. Then also agree an increase based on any works outside of the origional contract you end up doing.
Andy
