Cutting Up The Percentages
Debra doesn't know what kind of a percentage cut to pay her independent contractor friend.
QUESTION: Debra is setting up a small business and is bringing a friend on as an independent contractor. She isn’t sure how to pay her. She was thinking of giving her a percentage, but isn’t sure.
ANSWER: Any time I do a deal with a team member, I don’t do a forever deal. My word says that our deal works as long as it continues to be a fair deal to all parties involved. Whatever deal you make with her, you can keep doing it as long as it makes common sense. If she’s only there a certain percentage of the time, have the pay reflect that. You’ll get a pro rata portion of the profits based on the time you spend here. If she’s at the office 3 days a week, she can share in 60% of the net profit.