Re: Compensation based on Percentage of total Internet sales.

by "D J Tabish, Webmaster djtabish.bc.ca" <webmaster(at)djtabish.bc.ca>

 Date:  Thu, 13 Jan 2000 01:58:38 -0800
 To:  <hwg-business(at)hwg.org>
 In-Reply-To:  tusco
  todo: View Thread, Original
Hi Jacqueline and all,
A number of developers on this list have inquired before you so my guess is
that it's not all that rare for clients to ask, but quite rare for
developers to agree to it --- or at least rare for them to say so in an
open forum.  :-)

I have done this sort of arrangement, but only at my suggestion to a couple
of  clients (who I felt needed the break) and with the stipulation that
they would be required to pay my quoted development cost as a minimum at
some set point down the road. Yet, the clients coughed up the bucks as soon
as the sites were completed. No idea why.

I'd say be leary. They're trying to avoid the initial costs of going
on-line, but that should not be your burden to carry. Only do it if you
absolutely believe that it will be profitable for you in the short and long
run and if you are sure that they'll report accurate revenues and pay
properly. Six months or a year from now, they may opt to abandon the site
--- if they haven't paid you adequately before then, you'd be the one
taking the loss. 

fwiw,
Donna T

>I've never heard of this before.  This client's business is custom-built 
>computers.  If anyone here has done this or heard of it, could you please 
>tell me how common is this type of compensation/pay arrangement.
>
>Thanks
>Jacqueline Shaffer
>
>

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