Nobody with a smidgeon of sense will take a percentage of profits deal. Sales is what you want, and you pay sales people out of a percentage of gross sales. Not net. Not profit.

The reason is simple. It's a recipe for mischief.

You control expenses. That's your business, not the marketer's. And, when the money is seen as going to someone else, the temptation to play fast and loose with the numbers is asking for trouble. If the marketing person doesn't understand human nature well enough to understand this, they're not good enough students of human nature to perform adequately as marketers.

And there will be expenses.

I swear the people proposing pay-for-performance think they're getting away with something. It's not a free deal with no downside for you. Changes in policy. Testing. And going out and getting the business into shape for a performance deal so the pay is worth taking costs money.

The same people get flabbergasted that they have to redesign the product, or reshoot the video, or (gasp) go out and get testimonials. "This was supposed to be a free deal for me! ....That's why I proposed it!"

What if business quadrupled in thirty days? What if sales grew by tenfold? Most businesses simply aren't able to function on a pay for performance basis because they can't perform at that level. (Couldn't fulfill orders. Can't schedule. Couldn't answer the calls.)

Finally, a whole lot of people think the marketer is going to make people buy your stuff. Doesn't work that way. You change your business, then sales happen. And a lot of people hadn't counted on changing their business -- they want the marketer to make people buy whatever they're selling.

I'm going to leave the "can't multiply zeros" point for Gary Halbert to explain. (Link goes to, arguably, the most unpopular Gary Halbert Letter ever written) Multiplying any low level of sales is just about the same -- unpromising and unappealing.

When sales are very low, there's always the issue of what else is wrong. Self-sabotage can't be corrected by marketing. I've already heard all the reasons business owners couldn't be bothered to succeed, I have no stomach for another story.

Almost without exception the people proposing this deal signal they're not ready for pay-for-performance.

As John has said, there are too many things beyond the copywriter's control in arrangements like these. The one that always concerns me is not that you won't honor your end of the agreement, but that you aren't able to drive enough targeted traffic to your offer to make it pay. There are other issues as well, but good luck anyway!

Another point is you're asking for market research from the person you wish to hire. That could be a time-consuming process for which your final product might not meet the needs of, yet you offer no compensation for doing work you should probably have already done.

In the real world, it is next to impossible to find a commission-only salesperson that's not a recent college grad, or someone down on their luck desperate to try anything to make money.

If that's the kind of person you're looking to hire, then methinks you're in the wrong arena.

Cheers.

You know, this reminds me of something that was posted here a short while ago.

Some guy was looking for a copywriter to write an ad for a product he was selling on e-bay. His pitch to us was...

It would be great for our portfolios... and it could lead to work from (I quote) "the big companies"...

Do you see what he did? He tried to position himself as offering us something of value - in this case, another notch on our gun... and... exposure to future, potentially lucrative assignments. And, like you, he invited applications - the more detailed and passionate the better.

Now, I can't say whether or not The Big Companies (TM) trawl e-bay looking for sparkling gems of direct response long copy. But if I were a Big Company (TM), that wouldn't exactly be my first port of call.

But that's not the point... the point is, do you see what this guy is doing? He needs a copywriter. But the way he frames his offer is... he's got something any hot-blooded copywriter would kill for. Portfolio and exposure!

I don't know how many people jumped at it.

I hope you find someone who wants to work with you. But really - wouldn't you rather just spend a few thousand dollars now and get to keep *all* the profit? It's what I would do.

Best of luck with your project

Gil-Ad

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The problem here is that good copywriters have waiting lists of clients willing and eager to pay their full fees upfront...

Good copywriters turn down work on a regular basis because they don't have time to take on every project that comes their way. I do some royalty deals, but only when an upfront fee is included.

The logic is if they're any good they're not going to touch this, French/English aside.

The only writers who would agree with this are writers desperate for work. And if a copywriter is desperate for work, there's a pretty good chance that they're not good at what they do.

-Scott