Freelance contracts - Advice, asking for too much?

[black-ops]

Hello,

So recently I've secured a few rather interesting contracts. One to do with a website called studentgems.com which was a very luck break because I did a website for a chap who happened to know the CEO of SG,

This isn't where my question starts. The question I have is, one of the contracts I've recently been offered is to redesign and maintain (on a contractual basis) work for a local cab firm which has a relatively high turnover for only 20 cars. I say this is a small firm but they mainly deal with airport pickups in the couty of Surrey.

Anyway, The owner of this company wants me to redesign and develop their system (front end and possibly back end in the future)

Is it too surreal for me to suggest, working on a cheap initial basis but request for additional support I acquire a % of their company either as share dividends or as a partner to the company?

Is this completely unheard of and bad businessman?

One of my friends who had a lucky break with a start up company requested 10% and no initial fee in a gamble that it would take off. He now gets 10% of their turn over per year and has less experience than myself.

this company however is larger so I understand requesting such a % is going to be harder but is it unheard of or unwise?

My business plan is to get an income based upon maintaining a few company sites as opposed to have to pump out lots of designs (as i'm just a developer not a designer).

 

[Tripnologist]

I think it would usually depend on the company. If they have the cashflow to afford to pay you straight out, I don't see why they would want to get into a position where they are contractually obligated to give you a % of all future profits.

That being said, if the company is struggling along, or is just starting out and does not have the spare cashflow, it may be an option they are interested in.

When my company was just starting out, we took a few chances and did some free work in exchange for a %. Of the four sites we did, three went nowhere but one of them ended up being very successful and continues to bring us in a fairly substantial profit.

 

[black-ops]

I think it would usually depend on the company. If they have the cashflow to afford to pay you straight out, I don't see why they would want to get into a position where they are contractually obligated to give you a % of all future profits.

That being said, if the company is struggling along, or is just starting out and does not have the spare cashflow, it may be an option they are interested in.

When my company was just starting out, we took a few chances and did some free work in exchange for a %. Of the four sites we did, three went nowhere but one of them ended up being very successful and continues to bring us in a fairly substantial profit.

From my understanding of where they want to go. They are surrey based in general. But want to expand out and need to get the marketing front spare. they have future requirements of panflet design etc etc photography (which he wants me to do) This I presume is all apart of their expansion model.

But from what he's said he hasn't got the money to spend on a web based system which I think would justify a charge of at least £600 based upon their requirements. Would you advise me stating the % offer initially or would you state a base price + % offer in an attempt of them haggling down?

It's definitely a good opportunity for me to exercise some business skills as ultimately I would like to eventually start a design studio with a few close friends who are designers.

Regards M.