Ideal Profit-Share Ratio? And Share Your Thoughts

Hi Freelancers,

This is John, a web designer / developer from India.

Was browsing few links related to profit-share and merger terms for a freelancer-joining-a-company scenario.

So I have been working as a web developer since last 4 years and have got good reputation in the industry with decent clientele. An agency who wants to start their in-house web development wing has now hired me for a month to see how things go. Now the month is coming to an end and I am supposed to send a proposal regarding financial matters on how can this be carried out.

Few things you need to know:
- They are giving me salary but way less ($300/mo) than I already earn. Their say was that it will be low because they are looking at "Profit-Share" relationship, which can be my main source of earnings.
- I will be heading the web dev department, they will be providing me with a team to work under me as and when more projects start coming.
- I am responsible for almost everything, generating leads, sending quotes / proposals, confirming jobs and executing them.
- I am looking at a long-term relation with this company, they expect me to grow their business into 3 folds with the addition of web development wing.

Now I am really confused as to what profit-share ratio should I include.
I don't even have any idea on who gets t he bigger share.
The magic word here is "Profit" share, which is NOT the share of actual turnover. So basically they will calculate the total web dev jobs I got in every quarter, remove out the expenses (I have no idea what expenses) and then whatever is left, which we call profit will be the amount available to be shared as per the ratio I am asked to decide.


I have never worked in a company before, neither have I done any full-time job. Always took my jobs on per-project basis. Hence, quite unaware of how things go at such places.

Can you all please help me out here?

Also share your thoughts about whether you think I made a wise choice? I am looking to grow the business and make it long term. But I can't afford an office-space or hiring a team. So is this a good approach?


Thanks,
John D'mello