What percent to pay when hiring freelancers

[osbar]

Hi..

Let's say I'm working on some other stuff and I have no time to do this new project I've been ask to do;
I don't want to let it pass because it's some extra money I really need. So, I ask my friend who also works as a freelancer
if he would like to make the project. I will be hiring him, so I will be the one paying him.

What percent of the total cost should I pay him ? Or maybe, What percent should I keep if I where a company?

 

[camded19]

what is the project that you need to hire him to do because certain projects will cost more and take more time than others. Also will you be paying him hourly or will it be a flat rate.

 

[osbar]

It will be a flat rate.
About which project it will be.. it can be anything . (mixing a song, a logo design, video editing, etc.)

 

[ProducerJC]

It would be fair to give the freelancer 75% of the the total cost, while you keep 25%. After all, the freelancer will be doing all the work while you sit back and collect. On the other hand, if you want to approach this like a snake in the grass, you could try to switch the percentages. Personally, give 75% and keep 25% because at the end of the day it's about gaining new clients.

The best way to grow you business is to take good care of those you work with.

 

[bandcoach]

Remember: keep business with business and friends with friends; i.e. this is a business decision not a friendship decision - if they can't see that when you make the decision about what to pay them, hire someone else to do the project

What are your margins on this project? What overheads will you actually have to cover at the end of the day (utilities, rent, amortisation, printing, advertising, phone, etc)?
What tools and equipment from your workspace will the sub-contractor use, if any?
Is this a work for hire or a contract paid based on hours worked??
Who gets the rights to the finished product?
Will royalties ensue?

JC has given you good advice, but maybe play with the numbers a bit so that it is between 70/30-80/20%

 

[osbar]

Thanks.. Both have a good point.

Personally, give 75% and keep 25% because at the end of the day it's about gaining new clients.

So true.

---------- Post added at 05:55 PM ---------- Previous post was at 05:52 PM ----------

What are your margins on this project? What overheads will you actually have to cover at the end of the day (utilities, rent, amortisation, printing, advertising, phone, etc)?
What tools and equipment from your workspace will the sub-contractor use, if any?

Haven't thought about this. And sometimes, it will be my equipment the one being use.
..

Thanks a lot for the information!!