Re: Compensation based on Percentage of total Internet sales.

by Ivan Hoffman <ivan(at)ivanhoffman.com>

Date:	Thu, 13 Jan 2000 06:47:27 -0800
To:	"jshaffer(at)tusco.net" <jshaffer(at)tusco.net>, "'hwg-business(at)hwg.org'" <hwg-business(at)hwg.org>
In-Reply-To:	tusco
	todo: View Thread, Original

At 11:36 PM 1/12/00 -0500, Jacqueline Shaffer wrote:
>Has any member here had a potential client suggest Compensation based on a 
>percentage of total Internet sales, instead of the typical hourly rate for 
>entire design?
>
>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.

I've done a large number of web design contracts and deals in which the
designer gets paid based upon some percentage of the income generated.  The
very important point of course is to clearly define the basis for the
compensation including what deductions and expenses, if any, are to be
allowed, and of course the designer's absolute royalty.

IVAN HOFFMAN, B.A., J.D. 
Attorney At Law
Lawyering With Integrity (sm)
Writing and Publishing Law, Web Design Contracts and Law, Copyrights,
Trademarks, Internet Law, Web Site Audits, Recording and Music Law.  *A
Four Times Award-Winning Site.*
http://www.ivanhoffman.com

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