Would you do this if it was potentially worth $100,000?

And no, i'm not talking about pimping out your body, so get your minds out of the gutter

Anyway here's the deal. I have been approached by a client who is after some very special web development services. I have given him a development price for the project, and the client has returned with a percentage based payment, sort of like a partnership. This percentage payment is potentially worth $100,000 over the period of the project.

There are problems with this form of payment. The project has to succeed in order to pay me at the maximum potential. I am at the mercy of someone else's marketing strategy and could possibly get a percentage of nothing if the project failed, and that would mean no payment for the project at all.

Anyway, I have asked the client several questions at this stage. Because this is looking like a partnership I need to review the business plan, project plan and marketing strategies for the entire project. I will also need to get legal advice on this to cover my butt.

What would you do, would you take on a project at this level simply because of the high potential return? Would you state that you only work for fixed quotes or a fixed hourly rate? Would you ask the client anything else? What would be the deciding factors for you taking on a project like this? Remember there is potentially a huge reward from this, it is also very high risk and I could get nothing.

PS. I am not letting anyone in on this projects concept as I keep strict client confidentiality. So please don't ask what this is for, just think about what you would do if someone asked you to build a site and they would pay you a percentage return for payment.

If the fixed price quote for the project was only say $10,000 i don't know so it may be more. Then you need to think can I do without $10,000 if you can go for the big money. If not take the fixed quote. Personally unless the fixed quote was about $70,000 which i doubt it is i'd take the big money %.

I have been asked many times before on projects of varying size. My rule is this: never do it for free even with a percentage on the back side. If my new "partner" doesn't have skin in the game, it's not worth the effort on my part, because he could just take it and go back to playing with his Wii and I'm the only person out anything.

I never do one of these for less than half my going rate (because that's my breakeven point anyway). After that, I get a good contract in place, possibly one that gives me stock in the company as a way to guarantee that whatever happens I still own a piece of it (because the project you create becomes an asset of the company that you would then own stock in, so if the company liquidated, you'd at least get a piece of it).

Hope this helps. Good luck with it.

It also depends, how much work does it involve on your behalf? If its something which may take some time, but if it doesn't end up well ,you wouldn't look back and think, jesus, i spent all that time on it. Unless its something over a period of time which you just create here and there, then maybe it is worth it ?

Hmm, this one's tricky. Sort of. Couple of questions you should ask yourself:

1) Are you looking for a partner?

2) It's easy to get sold on a 'potential' amount. I mean, who wouldn't want $100k? Like you mentioned, you are at their mercy. If it fails, what have you risked? Most people ignore risk when you start throwing numbers out there.

3) If you had $100,000, would you invest it in this project/venture? And, with this person/individual?

it would depend on how this dominates my time. if, in order to get the maximum payoff i have to focus on this 24.7 - esentially ignoring any other self sustaining level offer (read: anything above a 1 - 2 page design for $300) then i would pass. in my eyes that's an all or nothing shot. if it flops i'll have no money, and i'll have no recent business to help me make up for my losses.

i also doubt it'd be anything but for a multi-hundred thousand dollar pay off - you're getting $100k, so it's at least a projected $200k over what time period?

1 - does he have experience?
2 - if so, how succesful is he?
3 - how much time and money are you investing?
4 - is it a good idea he has? unique?

The lottery has huge return potential but I don't play it because I don't think the odds are worth the money. But the lottery is only a little of my time (money), this is almost what I make in two years. Are you really willing to risk $100,000 of work with no return? I would say dont do it.

I would say try to work out an arrangement with him. Go after the big bucks, but have him pay for the script up front, and then just reward you with the difference if the project succeeds?

As .amaZe said, try to get some kind of insurance that you will be paid in some form or another. Even a legal contract, this means you can then enforce the contract later if it falls apart. It would take a great deal to work out suitable terms.

It just a question of do you think it is worth it. I suppose gut feelings will come into play but as long as you have some kind of backup plan if it fails.