[NEED ADVICE] % I deserve for doing a job

by STLSEO
27 replies
Good afternoon Warriors!

I need some advice.

My friend has his own company and typically outsources his work, but he doesn't like to. I currently have some spare time on my hands and told him I can help him out with his new client/project. The client is needing some SEO and web design work done and I'm fully capable of handling the work.

He wants to know what % I want for doing the job, but I don't know what to tell him as I've never done any contract work before.

Here's the scenario:

He has:

> Acquired the client (I wouldn't be able to make $ if it wasn't for him)

> A bunch of clients lined up who are needing work done (more $ for me)

I will:

> Be doing ALL the work


What % should I ask for? Your help is greatly appreciated.
#advice #deserve #job
  • Profile picture of the author travlinguy
    When you say what percent, what do you mean? Percentage of what?
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    • Profile picture of the author STLSEO
      Originally Posted by travlinguy View Post

      When you say what percent, what do you mean? Percentage of what?
      Percentage of the total project quotation.

      So if the client is paying $3,000 for the project, what percent of that do I deserve if I'm doing ALL the work and he's only acquired the client.
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      • Profile picture of the author travlinguy
        Originally Posted by STLSEO View Post

        Percentage of the total project quotation.

        So if the client is paying $3,000 for the project, what percent of that do I deserve if I'm doing ALL the work and he's only acquired the client.
        Okay, got it. I'd look at all the individual tasks and decide what I'd charge a retail customer. Then I'd take that amount and discount it for your friend for perhaps what I'd pay as a finder's fee for the work.

        So here's the question to you. If someone were to bring you a $3000 SEO gig, how much would you be willing to pay them for the referral? $300? $400? Whatever that number is, subtract it from the $3000 and you have your answer. Good luck.
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        • Profile picture of the author STLSEO
          Originally Posted by travlinguy View Post

          Okay, got it. I'd look at all the individual tasks and decide what I'd charge a retail customer. Then I'd take that amount and discount it for your friend for perhaps what I'd pay as a finder's fee for the work.

          So here's the question to you. If someone were to bring you a $3000 SEO gig, how much would you be willing to pay them for the referral? $300? $400? Whatever that number is, subtract it from the $3000 and you have your answer. Good luck.
          Thank you SO much for your feedback and advice. It is greatly appreciated.
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          • Profile picture of the author joseph7384
            [DELETED]
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            • Profile picture of the author STLSEO
              Originally Posted by joseph7384 View Post

              If you can tell me what type of company it is then I can provide a % that I think in my opinion would be appropriate.
              It's a small Advertising/Internet Marketing company. Majority of his revenue stems from Web design, PPC, and media buying.
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  • Profile picture of the author realreview
    Hmm a tricky one. Depends on what you can negotiate and what is comfortable for both sides. If I was in that situation it would totally depend on the dollar amount as if they were $1000 clients for a website I would want 75% but may go down to 50% but if they were $500 clients I would want 85-90%
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    • Profile picture of the author STLSEO
      Originally Posted by realreview View Post

      Hmm a tricky one. Depends on what you can negotiate and what is comfortable for both sides. If I was in that situation it would totally depend on the dollar amount as if they were $1000 clients for a website I would want 75% but may go down to 50% but if they were $500 clients I would want 85-90%
      The initial cost of the project is $3,200 ($1,100 recurring monthly)
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    • Profile picture of the author joseph7384
      [DELETED]
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      • Profile picture of the author STLSEO
        Originally Posted by joseph7384 View Post

        You really can't be serious, one can outsource for a fraction of that.

        Lets say that a painter told his boss that he want's 70% of the contract because he did all the work, what do you think his boss's answer would be.
        This is precisely the situation that I'm in. :confused:
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        • Profile picture of the author StewartJ
          Tough situation indeed. I'd say 50/50. Make your expertise and the fact that you are right in front of your business partner sound like something that can't be replaced. I mean; if a client needs something... who would your business partner prefer to go to? You; or someone who is thousands of miles away and might not reply when needed?
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      • Profile picture of the author STLSEO
        Originally Posted by joseph7384 View Post

        You really can't be serious, one can outsource for a fraction of that.

        Lets say that a painter told his boss that he want's 70% of the contract because he did all the work, what do you think his boss's answer would be.
        This is a great point. What would you do if you were in my situation, Joseph?
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  • Profile picture of the author abbesnwk
    Banned
    I guess 55-60%, for the new potential clients
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  • Profile picture of the author travlinguy
    There are other considerations besides referral fees. How much work did the guy who got the gig have to do? Did he make cold calls? Did he make visits to offline business to pitch the service? That all equates to time, gas, effort etc. I'd say the guy needs to be compensated for his time and should get something on top of that.

    On the other side of it, does the provider of the service have hard costs? Do you have to oursource some of the work? Do you need software? How much time will it take to complete the work? Will you be making a decent hourly wage or would you be better off working at Walmart? Many things to consider.
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  • Profile picture of the author omenstrippers
    I would also say 70%.
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    • Profile picture of the author joseph7384
      [DELETED]
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      • Profile picture of the author brett701
        Originally Posted by joseph7384 View Post

        If that's your answer then your dreaming if you think that you would deserve that kind of commission, yes affiliates get 50% and even 75% of commissions online but that's for getting a visitor to take action and make a purchase not for doing tasks.
        Most sales men get a commission of 15% for web based projects.

        An important question is. Is this before or after taxes?

        How do each of you benefit and get hurt from the taxes involved.(I'm not sure)

        software and equipment involved need to be considered.
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  • Profile picture of the author David Keith
    You need to find out what the market price is for doing the work. What price was he paying to outsource this stuff. My guess is no where near 50% ish.

    After that, you can talk about what advantages there are for his business if you are doing the work and maybe bump up the price from what the outsources are doing it for.
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  • Profile picture of the author David Keith
    The hardest part about being in business is finding clients. Doing the work is the much easier part actually. It takes more time, but involves much less risk than marketing to find new paying customers.

    I have no idea of the time involved in completing each project, but you need to figure out how many hours each project will require. Then you need to figure out what you are willing to work for. multiply those and you have a really good starting point for the discussion.
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  • Profile picture of the author Randall Magwood
    Normally i would tell you to charge no less than $5,000 for your services, but since you have no experience and no "real" clients... i would tell your friend that you will do the job for $500.
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    • Profile picture of the author STLSEO
      Originally Posted by Randall Magwood View Post

      Normally i would tell you to charge no less than $5,000 for your services, but since you have no experience and no "real" clients... i would tell your friend that you will do the job for $500.
      Definitely no contracting experience. However, I've got plenty of knowledge and experience when it comes to Internet Marketing.

      And charging a friend $500 for an SEO/Web design job that typically costs $3,500 is absurd. Friend or not, time is money.
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      • Profile picture of the author Haroon Ballim
        What is considered gold in any business . Customers of course . He is bringing in the customers . He started the business , and took the risks. Rather than a percentage you should look at what value your work and time is and come up with a set price [market related]

        Traffic is the toughest thing . Businness's pay millions to advertise , to get what , yes customers . Your friend is doing the toughest job . What you should also look at is what level of skill are you bringing to the table . Is it highly specialised or something many others can do . that would play a factor too.
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  • Profile picture of the author Gambino
    I would say 50%, but keep in mind he could easily find someone else to do the work for 25% or less of his profits.
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