Standard small agency billing rate
Out of context: Reply #20
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- monNom0
@Amicus
From the client perspective, I can see the whole profit sharing thing really rubbing me the wrong way.
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1: it's an administrative and liability headache. How much did the logo add to the bottom line? how much was due to the new products and services that were rolled out around the same time? how much was market conditions and would have been in there otherwise? If your design firm has some loose claim to an unspecified share of my profits, am I going to end up in court to settle it?2: Your design firm takes none of the risk, why should you share in the reward? Rebranding, for instance, is an expensive and dangerous undertaking for any business. Just as many will end up alienating clients and tarnishing their longstanding reputations as will improve them. Does your design firm guarantee success to the point that you will reimburse lost profits? Of course not, no business can do that and stay in business. As such, there's no good argument for a client to agree to share their profits over and above paying the fee for services rendered.
I can understand the pitch in that it's like a guarantee of quality, but I think the logistics are difficult, and it doesn't compare well with competing quotes that are 'no-strings attached'. I'll pay extra for no strings any day.
- Good points, and there are a lot of % question to be asked and proved to make it work, no.pillhead