How much should i get paid?

[DeeK]

First off I'd like to say Hello.
My name is Deek & I am new to the world of ECommerce. A friend of mine owns a store & has had his site up & running for about a year now but he has asked me to come on board to take over the site & be in charge of entering items, prices, & everything that goes along with it except the packaging & shipping of the items. Right now we are in discussions over how i should be compensated, we are both aware that I am very green when it comes to this sort of work, but I intend to work on furthering my education & building this site to one of the largest in our industry.

We have decided that I will be paid a %, but we just haven’t decided what that % will be or where it will come from,( Margin or total sales).

Any help & ideas will be appreciated,

Thanks
DeeK.

[roban]

Whatever you charge do not be led by your lack of experience. The tendency is to charge less when you feel your lack of experience warrants it. You must give yourself (and your client) an incentive to succeed and a low compensation will not give you the incentive. In fact it might have the opposite effect.

I would consider 5% of the margin to begin with but only if it is enough for you to live on.

[opensourceforce]

1- Start with what you need to make ;-)
2- You have other options and can earn other ways so there is an opportunity cost by taking the job. If you just want money then you should make at least what you can make somewhere else or dont do it unless it offers something else.
3- Does he need you to work there more then you do?

Why does he want to pay a percentage? Does he not have enough now to pay you a set hourly rate? If not, then be aware that a % of sales or especially profit might not be much. ie if he isnt making enough to easily confirm a set rate now regardless of sales then a % might not mean much to your pocker unless things grow.

If it is based on a percent of profit...then if he wanted he could always up his salary pay to himself as the business grows which reduces the amount of profit left for a & to pay you.

anyway....just a few thoughts....it might be better to work a combination of a set hourly rate and a percentage of sales or growth. This way you get some sure amount and if you help to make things grow you are earning more.

[DeeK]

Thank you for all the info & ideas,,please if anyone has anything else, feel free to keep it coming.

I'll explain a little more as to why were going off a percentage as appose to an hourly rate. As of right now I already have a full time job but it allows me to sit at the PC most of the day, so I will be using much of this time to work on the site, & since its off & on between my other work I won't have any way of keeping track of hours. And another reason for the percentage is that it should motivate me to increase our sales. Now eventually the idea is to create enough sales & revenue to the point that i can go on full time with his company. So I guess what I’m saying is right now starting out I'm not worried about supporting myself off of the site, but eventually it has to have the ability to make the most of my income.


Thanks again
DeeK.

[darsh999]

Yeah i think what you are proposing is quite right so what is the percentage share you would have ...... I think anything above 6-7% wud be great.