Business opportunity - please give me some advice

Every now and then I do some contract work for startups and small businesses. I normally ask for a fee and get paid a % before I commence work and the rest when the work is finished.

A new client approached me and asked me to take care of all his copyrighting, SEO and product marketing. He proposed me a deal where instead I get paid a lump sum of money, I will get paid a certain amount of money + 10% interest/per year every month.

So let's say the total cost of work is $5000. He agreed to pay the full money due over two years period. Hence he will be paying $230 for 24 months (equals $5500).

The company is a web 2.0 startup with a potential but there is always a risk that the owner might scam me or goes out of business.


My questions:

1. Ever had such deals?
2. Should I take the plunge?
3. What other information should I ask for?
4. Is it even legal to ask for say 10%+ interest rate?

Your sincere opinion is welcomed

 

No risk, no gain...good luck with u...hopefully there is sb who can help u with all the answers

 

I think you should get more details on what you'll do for him.That is,you'd better be clear about your responsibility.All maybe this work will
spend you most of the time so that you can't do anything else.Or you'll never satisfy that guy because of the uncertainty of the market.
After everything is clear,then,you can make a decision on whether you will cooperate with him or not.What's more,you still need to sign
an contract with the guy.

 

I have estimated the time and the amount of money. The amount that I am going to charge is $5000 approx and I am thinking that 10% per year for 2 years is a good amount of money for the risk I am taking.

Do I have actually to physically sign contracts? We are in different countries. How do you normally proceed about this?

Also I would like feedback of others.... What do you think? Ever done such deals for contract work? Is it even legal to charge say 10%-15% per year over and above your professional charge. Any lawyer?

Thank you for your feedback guys

 

1.Yes,i sub my company website development to team of programmer and paid them monthly.

2.Yes

3.You should ask for the personal information of the client such as name and address.

4.The interest rate is depend on both party.If both part accept it,then its fine.

 

mentos: thank you for your insight.

Does the subcontractor do the work upfront and then you keep paying him in the following months? Or is the work of a continuous nature and hence you pay per month while the work is being done?

Since in my case I will be working for say 2-3 months maximum and I will get paid in full in two years time.

Thank you

 

Contractors on Guru.com usually ask for monthly payments for work like this. A lump sum seems pretty risky even if you know the person as the business could be sold or go out of business (a very high rate of online businesses do)

 

I personally had been contacted by a company that actually provides this type of service. They would make sure my site was well maintained and would always provide adequate updates. The only thing I would question in your case is what happens once you finish their site, and they decide they no longer need you? It works out for them but its a big risk on your end. Good luck to you.

 

thanks, good luck in your future deals

 

Do whatever you can do but please make it legit, my sincere opinion for you , good luck

 

you have to seo service

 

I think you should get more information on what you'll do for him.That is,you'd better be obvious about your liability.All maybe this perform will
spend you most of time so that you can't do anything else.Or you'll never fulfill that guy because of the doubt of the industry.
After everything is obvious,then,you can create up your mind on whether you will continue to perform with him or not.What's more,you still need to sign
an agreement with the guy.

 

Try and get all the details about the company and make all transparent. It's very important to get all clear from the start. Everyone knows that big companies always tell who they are, where they are from etc. It's the way business works. Less info, more questions for SEOs.

 

I would not take that deal. Sounds like he's on a budget and wants you to basically loan him the work, hoping it'll pay off in conversions so he can afford to pay you. In my opinion, when a business suggests this sort of pay scheme, it doesn't have the money in reserve to pay for the work and your getting paid will have more to do with how effective your seo is at getting him sales. But as I've learned, all the SEO in the world will not generate sales if the pricing is too high or the products are notoriously defective and you have no way of knowing what his deal is.

 

Getting the detailed information about what you are required to do would be very beneficial for you.