Question

Topic: Strategy

Royalty For Commissioned Design

Posted by Anonymous on 7/21/2010 at 11:12 AM ET 250 Points
I have been commissioned to design a line of decorative hardware for a manufacturer, and have been offered a choice of compensation options.
Hourly with royalties would be my choice due to the nature of the project (we're no sure how many pieces will emerge from our concepts and final designs)
What would be an appropriate royalty rate? The line is to be a high end line-the manufacturer expects to sell less units at higher profit.

Are there templates out there for me to use for the proposal?

Is anyone on this forum qualified to write up a professional proposal and how much would that cost?

To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted on 7/21/2010 at 11:29 AM Accepted
    I am qualified to write the proposal. The fee would depend on specifics of what you want/need, how much research would be required, etc. If you want to get into those details, send me an email message (using the address in my profile) and we can talk/exchange email privately.

    I would not recommend using a template. Each situation is different, and you're much better off structuring the proposal to make your case and serve your needs. By the time you find the right template and modify it to suit your needs, you're better off starting fresh.

    If you absolutely need a sample proposal, there is one in the appendix to the book Rasputin For Hire (https://bit.ly/9w7nDq). It's quite complete -- long form/formal. And there's a detailed discussion in the book (pages 85-98) about what each section of the proposal should do/say.

    The royalty rate is totally negotiable. There is no "standard." It depends on how much they want you, and how much you want the job, what the hourly rate is, how much time you think it will take you, etc.

    And, for the record, I think hourly pay is a very bad way to go. It's not fair to you or the client, and it puts you in a real conflict situation with your client.
  • Posted on 7/21/2010 at 11:51 AM Author
    thank you for your response, mgoodman.

    I am glad you commented on the hourly rate issue as I am not sure how to go about this project and am most interested in developing a good relationship with this client.

    If the client wanted 10 pieces designed from concept to CAD file- then I could price out per piece based on my best estimate of how long I would need to do that.

    They need to decide which and how many of the concept designs to be further developed, and then if we will develop spin-offs of those designs, and how many...

    any ideas?
    thanks again for your input.

    would you contact me off -line with your qualifications and fee to write up a proposal?
    [Email address deleted by staff]

BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Strategy)