Comments on: Web design or development profit share agreements

By: Elham

Elham — Fri, 13 Feb 2009 09:34:05 +0000

Hi Rachel!
Thanx for your useful book,The css Anthology.

By: Ody

Ody — Mon, 26 Jan 2009 03:25:48 +0000

Rachel ur da boomb.Ur book The CSS anth.. really really helped me.
Cheers…

By: Ben Kerpe

Ben Kerpe — Wed, 07 Jan 2009 02:56:06 +0000

Well my situation is one of perfect harmony… Well at least so far. Our development and marketing company wants to engage into a profit sharing agreement with a very profitable business. All owners including myself is excited but there is one thing missing… A GOOD PROFIT SHARING AGREEMENT. I know the value of a good contract that spells out everything in detail… I am looking for an agreement that is structured for the developers to retain exclusive rights to the site while distributing 50% to the business we are interested in. We maintain the site, collect the money, and pay the business. I need a contract… Anyone know of a good source besides an overpriced attorney?

By: Relly

Relly — Fri, 19 Dec 2008 10:34:16 +0000

All very valid points.
For me, it runs the other way round as well. About once or twice a month, I get someone with a web app they are developing looking for me to write their copy and do some PR/Marketing work for them in exchange for a profit share.
Often these people underestimate what I charge for these services and how long they take to do, so they labour under the false assumption that I’ll be biting their hand off for 10% of their profit in exchange for ‘doing a bit of writing’.

My favourite example was a student who had no budget but wanted me to sign a contract to say I wouldn’t ever sue him to get more than 7% (!!!) of the profits when his idea went stellar and that – and that the maximum profit I could earn was capped at £750. Needless to say I politely declined.

By: Ryan Carson

Ryan Carson — Fri, 19 Dec 2008 07:29:18 +0000

Thanks for the amazing tips Rachel! Great insight.

By: Paul Williams

Paul Williams — Fri, 19 Dec 2008 03:50:06 +0000

Hi Rachel,
This post reminds me of a job I did for a friend a few years ago. It had a fully fledged business plan, and some money behind it. I was interested but unable to put my full energy behind it, since I was contracted part-time elsewhere. However, there was no contract between us, and I had no real input into the business. (My Bad, and I acknowledge that – a learning experience!) Needless to say, the whole thing fizzled with no marketing budget to speak of, and a lack of decent artwork for the products he was selling. I learnt a lot (new language and startup business experience) but it cost me a lot of time with no money heading in my direction at all. I don’t regret doing it – the knowledge has stood me in good stead since – but if I had the chance again, you can bet there would be a contract in there, and I would have some say in the company direction! So, basically, backing up what you’ve said above!
Cheers
Paul