Royalties Agreement

Francisco Torres
Francisco Torres Posts: 9
edited September 2019 in Type Business
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?
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Comments

  • JoyceKetterer
    JoyceKetterer Posts: 821
    Depending on the type of work, yes, definitely.  It is  uncommon for production work and  common for creative or conceptual work.
  • Francisco Torres
    Francisco Torres Posts: 9
    edited September 2019
    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% ? ?
  • JoyceKetterer
    JoyceKetterer Posts: 821
    @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 with 
  • Jeremy Dooley
    Jeremy Dooley Posts: 67
    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.
  • Oliver Weiss (Walden Font Co.)
    Oliver Weiss (Walden Font Co.) Posts: 213
    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.
  • Francisco Torres
    Francisco Torres Posts: 9
    edited September 2019
    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.
    What do you mean with this?
    Oliver Weiss (Walden Font Co.) said:
    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.
    Of course, I would just do it with people I trust.

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