I was asked by an old work acquaintence/investor to help them out with a newly created business. It is a sales business utilizing my own current companys design capabilities. They presented me with a contract specifying I was to receive 50% profit (not net or gross. Retail price less the cost of goods and sublet) for everything I sell. We are reducing from this the sublet design work to my personal company.
The investor is paying for business licensing, sales tax, and software. I am being paid as an independent contractor. I am not paid a salary and do not have any specific roles or titles in the company. The problem is that there is another part time employee/principal of the company that occasionally sells also. I have on occasion helped this person with a few accounts to help push orders through.
This company has alot of potential and I am more than capable of putting in the work needed to make it extremely profitable. I have not yet signed the contract because I do not think it will work out very well as it is written. Profit is subject to invoicing and the lack of structure and accounting makes me extremely hesitant.
I would like to propose a structure that either monthly or quarterly would have a "bonus" or "payout" calculated after all profits were balanced with all expenses. Doing this I would also like to establish a small salary that would cover my travel expenses, promotional time, advertising expenses, as well as networking and prospecting. I will be establishing vendor and customer accounts and will be primarily in charge to maintaining these relationships.
I want to make sure that if I am doing media blasts and I am not the one that sells a resulting job, I will still be compensated for the increased revenue. Does anyone have an idea of how I can establish this as a profitable venture for both parties? I am not investing money into the company but I will be investing the majority of the sales and growth.
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