Wage or % of Profits ?
- Thread starter Jakeee
- Start date
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A percentage of whose earnings? The shop?
Do you mean earnings as in "income", or earnings as in "profit"?
How big is the shop in terms of turnover?
How many people already visit the website?
How many orders are already generated through the website?
What is the wage you are offered?
What is the % you are offered?
Almost a total lack of information.
Do you mean earnings as in "income", or earnings as in "profit"?
How big is the shop in terms of turnover?
How many people already visit the website?
How many orders are already generated through the website?
What is the wage you are offered?
What is the % you are offered?
Almost a total lack of information.
Soldato
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- Surrey
i'd go for a bit of both as then you've got the security and also the small amount of risk that may pay off. if you see that business is booming then you can always ask to regonotiate contract say take much smaller wage for a decent percentage. i'm sure if you're as important as you say then there will be no reason you can't make a few demends as you'd be solely responsible for the success online they're having
Heres an update, after some thought, he doesn't want it wage based as he wants me to have a stake in the business and keep it maintained on my end. Problem is, any idea what percentage I should demand? I asked for 25% of the profit and then revise it to a higher percentage after the first year but he said that I had to consider all the outgoings on his end such as V.A.T. and delivery . . . he said it wouldn't be worth it for both of us.
How much should I demand/consider and how can I minimise outgoings on his end, is there any advice ?
Sorry, the percentage of the web business, I want it totally separator to the shop, fresh brands, fresh image
I'm not sure on the yearly turnover, I know its pretty decent. Nothing on the website yet, I will be developing it from scratch this month, the shop is going to pay for all the stock with suppliers. I was offered a wage or percentage that he wanted me to offer him. Since then he has pushed for a percentage base, maybe I could ask for a start up fee with the percentage to help me start?
How much should I demand/consider and how can I minimise outgoings on his end, is there any advice ?
Sorry, the percentage of the web business, I want it totally separator to the shop, fresh brands, fresh image
I'm not sure on the yearly turnover, I know its pretty decent. Nothing on the website yet, I will be developing it from scratch this month, the shop is going to pay for all the stock with suppliers. I was offered a wage or percentage that he wanted me to offer him. Since then he has pushed for a percentage base, maybe I could ask for a start up fee with the percentage to help me start?
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Well I'll be doing most of the work, I'll be relying on him for only stock and delivery. How much sounds a good percentage ?
The figures would be bias and wrong, hes got two shops in the UK relying on local customers (Different brand trends and price margins, compared to other areas of the UK) This will be a new start, aiming for a UK audience with a whole new range of brands and prices. Do you want me to find out for you, any other advice before I speak to him ?
No, not yet but there is another business that wants to go online, he's offered me 50% of the business which looks promising
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Associate
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This. Or better still a wage but a slightly reduced wage plus a smaller % of the profits. Don't take this the wrong way but if you cannot negotiate such then realistically your talents are probably not in marketing.
How much do you trust this guy? What rights will you have? You might be better pushing for a shareholding since that should give you better rights - call shareholder meetings etc. Also, what is meant by profit? Gross, operating or net profit etc?
Presumably you're going to sign a contract - how are you going to get out of that contract if things don't turn out as well as expected? Tbh it might be worth going to see a solicitor about this as you could find yourself locked into an unfavourable contract.
Presumably you're going to sign a contract - how are you going to get out of that contract if things don't turn out as well as expected? Tbh it might be worth going to see a solicitor about this as you could find yourself locked into an unfavourable contract.
Most of the work? Surely once the website is live you wont be doing much work? Updating new product lines should be quick.
After the initial go live and updates, what else will you be doing?
There is a difference between marketing and negotiating my income, I'm brilliant when it comes to making deals with suppliers, reps, selling my business services . . . but I always feel awkward when it comes to personal wage haha.
Any advice ?
Permabanned
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Ask for a % but DEFINATELY put a clause in the contratc saying it must be topped up to a minimum of x (fairly low salary) if the % falls short of that.
There is a massive risk here that the profit will be so low you won't get paid much. You need a minimum cap. If he's not prepared to do it -- that means HE THINKS you will make less money than that :/
There is a massive risk here that the profit will be so low you won't get paid much. You need a minimum cap. If he's not prepared to do it -- that means HE THINKS you will make less money than that :/
Kind of like the above, I'd say ask for a wage as a minimum, and then a % for anything over that.
Hard to explain what I'm thinking about actually, but kind of like how student loads are done with you paying back 9% of anything earnt over and above the threshold.
So your basic would be the threshold, and the x% would be paid on anything over and above the profit left after paying your basic.
Or something like that
Hard to explain what I'm thinking about actually, but kind of like how student loads are done with you paying back 9% of anything earnt over and above the threshold.
So your basic would be the threshold, and the x% would be paid on anything over and above the profit left after paying your basic.
Or something like that
o Web design & Development
o CMS (Contents Management)
o Dealing with Models and Product Imaging
o Quality Management
o Marketing & Advertisement
o Payment Processing
o Accounts Management
o Stats and Data Analysing
o Data Mining
o Affiliate Management
o Website Security.
o SEO (Search Engine Optimisation)
Probably a couple of days per week worth of maintenance, not much once most of its done, your right.
What benefits will I have as a shareholder? the only thing I've decided to do as collateral is register the domain and host account in my name. I trust him but at the same time, hes very business minded and likes money, I was going to write up a contract, do you think its best to pay for one ?
Right
Percentage of profits, how much is reasonable? (The profit margin is a 2:1 on everything) but then theres is delivery and tax to consider, I cant give you any estimated income as there hasn't been any on-line yet.
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Soldato
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just to double check you said profit? if so i'd go with a set wage or nothing. VAT and delivery have nothing to do with profit so why is he mentioning them as a reason why you can't have 25% of what's left after all other bills are paid?