Compensating copywriter with percentage of profits - how does this work?

[Mynt]

I'd like to launch an IM product aimed towards the offline niche. My copywriting skills are no where near the level to make this happen, and I'm not able to come up with the $2k+ upfront.

I've read in threads of copywriters accepting percentage of profits. Curious to know how this works. Mainly: how are sales verifiable by both seller and copywriter? Is there an escrow-type service that receives each payment--and then disburses to each party?


Thanks.

[MontelloMarketing]

It must be done with transparency... meaning he/she gets access to your accounts.

Also... the percentage deal may not be what you're looking for considering 99% of the time it's a percentage ON TOP OF an initial payment up front.

That's what you'll get from most proven copywriters.

Getting a deal with no money up front USUALLY means you're getting someone with little or no proven skills.

[Loren Woirhaye]

I would run such a deal, as the writer/strategist, on my own
ecommerce system with an account created for the product
creator.

There are other ways of course... but naturally both parties
would want to work with somebody they felt good about
collaborating with. Open books don't prevent one party
or the other from damaging the other in the arrangement
however - if one side (or both) are inclined to crookedness
they will find a way to dishonour the spirit of the agreement.

I'm just saying... because as a writer I would have access
to the product and if I were a heel I could just republish it
under my own badge and sell it with a graphical salesletter
(or via the mail) and you might never find out because a
Google search for keyphrases in the letter would turn-up
nothing.

As the product creator you could devise a few ways at least
to sell your own product "under the table" easily enough.

So it's a matter of honor and mutual goodwill more than it
is a matter of putting failsafe protections in place. Work
with people you feel you can trust. Once in awhile you'll
be wrong, but just move on and find the people who are
good to you when you are good to them.

[Raydal]

Most copywriters would require a down payment and also some
evidence of marketing success in the past before making a
deal like this. What keeps a commitment beneficial is when
both parties have something to lose by not following through
with it. So if you get the copy for free then you lose nothing
if you decide not to promote the product.

As mentioned before, you must give access to the income
account as well. The bottom line, it's not a likely option
if you're broke and want to get ''cheap' copy. Most
marketers who get deals like this CAN AFFORD the
copywriter's normal fees but choose this route because
of the added incentive the copywriter gets for making
the copy the best possible.

-Ray Edwards

[John_S]

All of the above is sound advice. Mostly this kind of deal is for established clients.

One extra thing. I would not take percentage of profits, which is a recipe for mischief. Gross sales -- possibly increased over a baseline -- but gross sales.

The companies rarely understand the upfront cost. When you're not paying, you are not a client. You don't dictate terms -- power shifts to the copywriter trying to increase sales. That means if you've fallen in love with your product, you're not going to want to change it. And it may need to change. Frankly, a lot of things might need to change.

Your "payment" upfront is adaptable willingness to change. And many find that price too high.