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What would fair compensation be for this?

by CreatingDough
2 replies
Could you guys please let me know what you think fair compensation for this would be for the following scenario?...

Say I worked for a company as an independent contractor and they are paying me a set amount hourly, but they are also willing to pay based on performance (increased revenue for the company). What % of the increased revenue should I receive and for how long? What do you think is fair to both myself and the owner of the company? Also, how often should this be paid?

If you are saying just what you feel would be right, please say so. If you have some kind of experience with this type of thing, please tell me so I know! Thanks in advance!

Regards,
Adam
#compensation #fair
  • Profile picture of the author Will Edwards
    Impossible to figure. If you were working for me, I'd negotiate a low salary and high commission to drive your behaviour, but I know of at least 1 company that does exactly the reverse - and it always seems to struggle with sales. Keep 'em lean and keep 'em mean I say.

    Not sure if that helps.

    Will
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  • Profile picture of the author tomcam
    This requires more knowledge of the business than you have provided, so here are some ranges.

    If it is a high margin business, a number like 5%-15% might work out fine. I know a product launch specialist who signs such deals every day. On the other hand one could never do this with, say, a grocery store. Their margins might be only 1-2%.

    Cheers,

    Tom Campbell
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