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  1. #1
    SitePoint Addict ozmart2004's Avatar
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    How to divide up the spoils?

    We work as a loose collective. There is myself, another independant contractor plus a couple who work under the same business name.

    We are working on a couple of $10K plus projects plus we just scored another one which will be in the same ballpark. These are the first big projects that we have worked on in this way.

    Yesterday over a lunch meeting the topic came up about how are we going to divide up the money when we (finally) get paid! No-one was really sure how to do it or how to work out a fair and equitable method.

    This is a bit of a touchy subject (money always is) and I can see it having the potential to damage or even destroy our collaboration, if it is not handled properly! Up to now it was simpler and we just based it upon the work done just building the website or app or whatever. These projects though have a lot of project management and other stuff in them, and a lot of tasks are combined or done jointly, so its not so clearcut.

    Can anyone give me some advice about how to deal with this issue so that everyone is recompensed in a fair, open and equitable manner?

    My thoughts are that as partners in the projects we should all perhaps get a base share/amount and then a portion related to the amount of hours of actual work. I'm a bit lost as to how I can work that out...maybe allocate percentages to each input?

    I'm sure someone has already had to deal with this. I would greatly appreciate some words of wisdom or perhaps even some kind of methodology that would help me out! Thanks.

    Cheers
    Martin

  2. #2
    SitePoint Addict jessebhunt's Avatar
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    I've never had to deal with this type of situation before, so take my thoughts with a grain of salt.

    However, perhaps you could divide it like this...

    Decide on a resonable hourly rate for everyone. Then pay each person their hourly rate based on the number of hours that they actually worked. For book keeping purposes, this would be considered salary paid.

    Then, after all expenses have been paid (including salary,) you could divide the ramaining profit between the partners. For book keeping purposes, this would be considered a draw.


    Hope that helps.
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  3. #3
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    beley's Avatar
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    No offense, but you should've put this in writing before you ever landed your first client. Now they can all argue that they deserve a completely equal share, which they just might if that was in any way implied or it never came up (could be assumed).

    You should all sit down and talk about how much responsibility you each have with the company, and the number of hours worked.

    I think if you all go in as equal partners you should probably write up a document showing how much you will keep in the company (for growth, advertising, etc.) and then you can just split the profits evenly.

  4. #4
    SitePoint Addict ozmart2004's Avatar
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    Yes, I take your point .... two of the people involved are in a defacto relationship and the other is the first guy's best friend..but yeah, we are a bit hopeless at this stuff! Which is why I'm trying to do something about it! :-)

    I really need to be able to take something concrete back to them that I can get them to agree to.


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