Royalties Agreement
Francisco Torres
Posts: 9
Hi,
I'm not sure if this was discussed before, but at least I couldn't find it.
As freelance type designer, I'm getting used to make budgets for retail and custom projects. That's the 'easiest' way of charging for my work. However, I think there are other/different ways of dealing with this part of the business and I would like to hear your stories.
Example: I'm discussing a budget with a foundry (client) for a retail project and the client doesn't want to pay me the amount of money I'm asking for the project/time of work. I would consider accept the amount he is offering me ++ royalties of the sales.
Does this kind of deals happen? What would be a fair deal?
I'm not sure if this was discussed before, but at least I couldn't find it.
As freelance type designer, I'm getting used to make budgets for retail and custom projects. That's the 'easiest' way of charging for my work. However, I think there are other/different ways of dealing with this part of the business and I would like to hear your stories.
Example: I'm discussing a budget with a foundry (client) for a retail project and the client doesn't want to pay me the amount of money I'm asking for the project/time of work. I would consider accept the amount he is offering me ++ royalties of the sales.
Does this kind of deals happen? What would be a fair deal?
0
Comments
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Depending on the type of work, yes, definitely. It is uncommon for production work and common for creative or conceptual work.3
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Yes, of course it makes much more sense if we are sharing concept or basic design decisions (50%/50% for example).
However, I was asking in situations when the designer does mostly development/production work. If the client doesn't have the money at the time (or whatever), it would be a way of paying the designer still.
Again, for this kind of situation what would be a fair deal xxxx€+ 5% , 10% ? ?0 -
@Francisco Torres I know of a few situations like that and every one is different. It's less an issue of fair and more an issue of what the two people feel comfortable with1
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As a foundry, I'd love to see this, but it seems likely the overhead for tracking royalties would be rather "expensive" (*not just in money terms) for the client.2
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I'm not sure I'd trust the client to report correct numbers. In most situations you won't be able to verify what numbers you do get.2
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Jeremy Dooley said:As a foundry, I'd love to see this, but it seems likely the overhead for tracking royalties would be rather "expensive" (*not just in money terms) for the client.I'm not sure I'd trust the client to report correct numbers. In most situations you won't be able to verify what numbers you do get.0
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