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Is the product the developed site or does he sell a material product that he needs a website to sell it. If you are building a web app, that will be the product
by kls 14y ago
Is the product the developed site or does he sell a material product that he needs a website to sell it. If you are building a web app, that will be the product 5% is a low offer for basically doing all the work to create the business. If he has an existing business, with an existing product that he already has sales for, and he just needs a website to sell online, then you will have to do the math, it may be great and it may be a horrible offer.
I turned down an offer once to receive 1% or profit on every transaction that came in through some web-services I build in lieu of cash up front. It was the worse mistake I ever made. That service did over 50 mill in profit the first year alone. I should have done the math and took the risk. So it all depends.
- codemonkeymike 14y agoYou make a good point, the website is offering a new service. A service which my friend will be doing most of the work providing the service.
- kls 14y agoSo 5% of his ongoing labor, is this perpetual? How much is the average service contract and how long do you think it will take to build what he is looking for. Also you will want to get a pretty good contract in place. As time goes on people tend to appreciate work that was done in the past less than they did when they needed and start to look at the fees associate with that work as a free ride. You will want to make sure that a year or two down the road he does not decide that you have made enough and try to renegotiate or cut you out completely.