Re: Compensation based on Percentage of total Internet sales.

by "Leland V. Lammert" <lvl(at)omnitec.net>

Date:	Thu, 13 Jan 2000 10:21:19 -0600
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 10:36 PM 1/12/00 , 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?

Sure, .. it's done all the time. We have three projects that are equity investments, with varying degrees of success. I would truthfully consider all part of our 'education', .. not part of our 'revenue'.

>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.

You would be an investor in the business, .. and take the commensurate risks and rewards. Is this a business that YOU wish to invest in? Do YOU think it will succeed? Can YOU make it succeed to recoup your investment? If you can answer yes to these questions, it's a good investment. If not, walk away (or get some other sort of guarantee).

Personally, I would seriously look for a VERY unique twist on a custom-build computer web site - there are just too many big players doing that already.

         Lee
============================================
    Leland V. Lammert                                lvl(at)omnitec.net
       Chief Scientist                         Omnitec Corporation
   Network/Internet Consultants              www.omnitec.net
============================================

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