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    5 Replies Latest reply on Nov 8, 2010 10:21 PM by aimtoplease

    Contracting out work - help with contracts and payment!

    RJANOLA78 Newbie
      I'm starting a t-shirt design co and I have called in the help of a friend for fresh and innovative designs. I want to make sure he is properly paid for his efforts. He will be assisting me in designing graphics to put on my t-shirts. We have a lot of market research to do; I don't know which designs will be produced first. Because I cannot have any revenue without designs, I need to pay him on a sales percentage rather than a flat fee, at least at first. I want to create a contract that is not only fair, but also in my best interest as a business and brand owner. This is new territory for me, so any advice on where to go from here (i.e. payment and contract details) will be greatly appreciated.
        • Re: Contracting out work - help with contracts and payment!
          LUCKIEST Guide
          Contracting out work, Welcome

          Who are you?? Good luck with your new business

          Do you know about SCORE?? SCORE is FREE and can help
            • Re: Contracting out work - help with contracts and payment!
              RJANOLA78 Newbie
              What is SCORE? I'm aware of his work abilities that's why I want to hire him so I can work on the business aspect of it and just approve or supervise the designs. He is very talented and I just want to offer him a fair compensation for his work.
                • Re: Contracting out work - help with contracts and payment!
                  Iwrite Pioneer
                  Welcome to the community!!

                  Please fill out your profile a little so we know who we are talking to. I tend not to answer questions from folks who haven't filled out their profiles.

                  I think it is in the best interest of all involved to have a contract that defines the scope of work and outlines the responsibilities and expectations. It is not right to have someone work on designs and only pay them for the ones you use - this person has invested his time and talent. I know that is not what you were saying but it was suggested in an earlier response.

                  The best way to start is to simply sit down with the designer and the two of you work out a contract that both of you feel comfortable with. It doesn't have to be super long or complicated - simply put down what each of you think each needs to be covered and go from there. After you finish the first draft, sleep on it for a day or two and then come together and make any changes that you might have thought of. Once you both are good with the terms, sign it and get going. It is always great to have a lawyer look over it.

                  Your biggest concern should be the ownership of the actual designs. Are you buying them outright or does the designer retain the rights to them? That is something only the two of you can decide.

                  Good Luck.
                  • Re: Contracting out work - help with contracts and payment!
                    LUCKIEST Guide
                    SCORE is FREE both in person and online.

                    *SCORE "Counselors to America's Small Business" is a nonprofit
                    association dedicated to educating entrepreneurs and the formation,
                    growth and success of small business nationwide.*
                • Re: Contracting out work - help with contracts and payment!
                  Adventurer
                  You need an Independent Contractor Agreement with a Confidentiality Clause. You can find free ones from several sources. Check out the free Business Ower's Toolkit at: http://www.toolkit.com/tools/index.aspx. You will find any kind of form you need there for free. It will contain all of the standard boiler plate clauses that you will need. You will edit it to fit your needs.

                  There will be a Payment clause in the contract in which you will specify how and under what circumstances he will be paid. The confidentiality clause prevents him from telling all of your secrets to someone else, or stealing any designs that he sells to you, things like that.

                  Payment options could be a one time purchase of a particular design or so many cents per t shirt that sells with a particular design on it. That way, you aren't paying a lot for a design that doesn't sell. If it sells a lot, then he receives a small share of the profits, which inspires him to design even more successful ones - you hope.