% back to the company...

Can you tell me if this is too much...

[madcat]

Hi-

I do contract work for a company. For Web design, they ask 30% of each project they bring. I actually set the prices for each project. But figuring what I need to take home to live, then adding 30% to the price is a killer. Is that a reasonable percentage to be giving back or does it just depend on the circumstance? It's difficult to stay competitive with that rate.

Thanks-

M

[olwen]

The amount depends on a lot of factors, like who finds the work (i.e. does the selling), do they pay you before they are paid, etc. Depending on the answers to those questions 30% could even be very low.

[GarryBoyd]

30% for the marketing is about right. If they can't sell it for the price you need then either you or them will have to walk away. Remember that if you had to market yourself you might end up spending 30% of your time on it anyway.
Depends how much of the work they do for the money. If you get to avoid having to deal with customers its a good deal, so long as you still have good communication and feedback coming from the company.

[Travoli]

You can always raise your rates :)

[madcat]

Thanks, that gives me a better perspective. Yeah, much of the work comes my way via the company. So, if business is steady I'll start to raise the rates a bit.

[mcc235]

Sorry to enter this conversation a little late, but 30% to 50% is the norm for reseller activities, which is effectively what this company is doing. When you think about the cost of a dedicated sales person (and all the other expenses that go with that) then 30% is pretty cheap.

Maybe the problem isn't the 30% but the type of client's this group is putting you in front of. If they are not proposing a complete solution that justifies the additional 30% perhaps you should look for another reseller / contract company.