posted
I have a artist that is helping us design a line of Haloweeen and theatrical backdrops.
He wants to work on a commision of the gross sales. Has anyone ever worked with this kind of arrangement before? What percent is fair and expected? Would I be better off to buy his work by the piece?
Thanks,
-------------------- Mike Milos PrintSation Banner D-Signs & Graphics 489 S. 13th Ave Brighton, CO 80601 303-726-6513 Posts: 50 | From: Denver, CO | Registered: Jun 2004
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well he's no dummy..lol. i'd try to buy it outright...unless you have doubts that it will be a hit. i don't know what is fair commission but ask him how much he would be willing to charge not based on commission.
-------------------- Karyn Bush Simply Not Ordinary, LLC Bartlett, NH 603-383-9955 www.snosigns.com info@snosigns.com Posts: 3516 | From: Bartlett, NH USA | Registered: Jan 2001
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With the wrong people it can drive all of the wrong things.
You're not in business to sell, you're in business to profit.
The point of hiring a new sales person (or an artist who will contribute sales, in this case) is to generate incremental gross profit for the business.
Give them a budget (monthly sales objectives) and pay commission on incremental gross profit. This requires that you have a good handle on your costs. If you don't, download Profit Watch for free from EstiMate Software's website and take the time to use it. If you aren't already using some kind of job estimating software, you should check out EstiMate while you're at it. Nice product...will help you ensure that you are pricing profitably! (...and no I'm not on Mark Smith's payroll - but I am a fan!)
Sorry this post reads so "categorically"...just pressed for time.
Good luck!
[ July 15, 2004, 11:02 AM: Message edited by: Jon Aston ]
-------------------- Jon Aston MARKETING PARTNERS "Strategy, Marketing and Business Development" Tel 705-719-9209 Posts: 1724 | From: Barrie, ON, CANADA | Registered: Sep 2000
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