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I am a freelance graphic designer and very new to this field. I have a client who is starting an e-commerce commerce business. I am not working with him hourly or on flat rates. He is saying he will give me 10% of profit from my designs. Is it ok? Also I have designed a character for him. The idea of the character was his but all designing is mine. Should he share copyrights with me? If not what should be the compensation?

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Short Answer: No. You should accept payments in cash.

Long Answer: By taking on a percentage of profit, you are effectively becoming a business partner with your client, which isn't the relationship you want. It adds complexity to your business:

  • You have to figure out how to track which sales you can attribute to your design.
  • You will have delays in your cash flow.
  • You are taking control of your business's revenue out of your own hands and into the hands of your client. How many units they sell is a function of several factors, of which design is a small part.

Unless you are interested in becoming a long-term business partner with the client, then I would ask for a cash for services rendered. And if you do want to be a partner, negotiate better terms.

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