My first paying project - compensation guidance requested!

by juanzo
2 replies
Hey Folks,

John here, IM newbie, and it looks like i'm gonna get a paycheck for the first time in a VERY long time, if you know what i mean...! Whew... Anyways, many thanks in advance for your advice on this topic. I am green as a entrepreneur too.

I have managed to get the interest of a particular product distributor and expect i will be doing his online marketing campaign. While treating this as a portfolio builder, I still wish to protect myself and gain fair compensation for my ideas and effort. I have secured 3 of the 4 top domains that the distributor overlooked (there is no US trademark on file - German company).

My thought is since I have no major credibility yet, that i simply keep track of my hours, and if he is happy with the site's performance and he sees an ROI, then maybe we can arrange a monthly payment until my hours are paid for and sign the code over to him, maybe ask for a small premium for the domain, then bill hourly for added work afterward.

Another question i have is what the hell do i ask per hour? Does $40/hr seem out of line if say i get his site traffic to double and he sees a significant boost in sales? His renenues will be approaching the $1M mark soon, despite the fact that his web visibility is very poor. I don't want to sell myself short if by chance my campaign and domain are winners.

Many thanks!

  • Profile picture of the author ButterflyIS
    I think there are two ways you can price yourself.
    1. Think how much money they're willing to pay for your service
    2. Think of what amount that will provide you regarding your effort

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    • Profile picture of the author Newman8r
      You should consider charging a flat rate for marketing campaigns, like a percentage of their campaign, plus a monthly maintenance fee.
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