designers and percentages

Re: [spiers] When working with designer how do you establish a percentage on a product.


In a message dated 7/9/05 8:09:06 AM, crowboy@earthlink.net writes:

<< I am a student of your from years ago............I have your book, I also
have a successful

online business.

***Seriously, how do you define success... and everyone is keen on how to
make the internet pay...any tips?***

We are designing a new product that is much more complicated than our

prior ones - and will require us to hire an engineer.

***Think "royalty" basis...****


I know you do not like hiring people who are friends but this person is
qualified and we

know what we want, and what our customers want.................

***Nay friends are fine, it is asking friends and relatives what they think
of your product, instead of asking customers, is what I caution against.***


My question is this: My partner and I have the product pretty much designed,
it is made

up of 7 parts all of which we are having made in India by a vendor we have a
very good

relationship with. We want our friend to work the parts into Cad drawings,
design with us

all the details, maybe help with packaging. We can not afford to pay
upfront, what would

you say is a reasonable percent of the profits of each sale would go to him
to pay for his

time? Since he has not done freelance work before he can not give us a
quote...............

>>
***This is in essence a royalty, the more you sell the more he makes...
check the trade journals., do a search on infotrak in the library to find the
royalty rate paid in your field... check the USPTO.gov and ask designers of
similar items what they would expect o get paid...also, consider having the
designer own any patetns, etc on this item, and he licenses you... the idea
being you
get teh custoemrs, the designer has to worry about any legal liability on IP
infringement...make sure the indians agree to sell your product all over the
world and they pay YOU a royalty too!***

John

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