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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?

marked as duplicate by Scott, Amelia Jun 6 '17 at 16:46

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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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