I am brooking some international licensing and partnering for a friend's company. He will give a percent of business shares for the business I bring in for him. Whenever they have fee and milestone payment happened and royalty payment I will get a percent of them as long as the licensing and partnering active.
My role in the transition is identify business, make connection and coordinating and assisting on difficulties between the parties.
My friend does not pay me anything in front. I agreed to invest my time and effort.
My questions are:
What percentage is fare for me to ask for the future business?
Should I ask other party for a percentage on other party I bring to my friend?
What kind legal contract I need to have with my friend and other party.
Please advise.
Thank you very much for your help.
JZ
Answer On the legal agreement, you might want to call Richard Sindell at 206-622-9050. You should have an attorney prepare a document for you, and the company. The company should pay for this, if there is a cost.
Percentage is difficult. Sometimes 5% to 20% is suggested, but difficult to know what the volume and time committed might be. I suggest you price this to your time and charge an hourly amount backwards, and up front. You should ask for a smaller amount up front to cover your costs of time and materials. The rest of the pay check could be estimate on an hourly basis and then billed out. The cost needs to be understood by both parties, and clear understanding for the benefit to both sides.
I charge $375 per hour, and many are happy to pay this. So what is your rate and value to them?
