I would like to get a copy of your Contract for Indepenent Contractors
I sent the Independent Contractor Agreement and a Nondisclosure Agreement for my contractors to you via e-mail. These contracts are in Microsoft Word format and you will have to edit them to fit your business needs as I wrote them to cover several aspects of my business. I also recommend you have your attorney check them to be sure they are legal in your area.
Good luck with your business,
-- Edited by JD on Sunday 2nd of August 2009 10:13:30 AM
Thanks so much, JD, for all the information. I'm learning so much from the archives, as well as new postings, and am really grateful that so many people are willing to share information and help out us "newbies". Hopefully we can someday pass on by doing the same.
I wrestled with the amount to pay my help for a long time. I have them set up as Independent Contractors so I don't have to do anything but send them a 1099 at the end of the year. I asked many business people what they thought would be good compensation and I was given numbers in a range of 5 to 10% of the sale. After doing the math on previous inventories, I would not work for that small amount. So, I decided to pay them 25% of the sale on any inventories they worked that I set up. 25% of the sale on any inventories they set up, but did not work. 5% of the sale on any people they referred that I set up and they didn't work and 50% of the sale on any inventories they set up and worked. These percentages are before any tax is added to the sale on taxable items such as the reports, data CD, etc.
These percentages seem to work very well as my contractors are happy with it. I also plan to increase their percentage over time if they did a good job for me and were reliable. Below is paragraph 4 of my Independent Contractor Agreement form. If you would like the whole thing, please send me your e-mail address and I'll send it to you. In fact, if anyone on the NAHIP board would like copies of the client and Independent Contractor contracts I use, send me your e-mail address. However, keep in mind that my Independent Contractor contracts include other things my company does, so you would have to edit them to fit your needs.
4. Compensation. Company agrees to compensate Contractor for completed assignments in the amount of 25% of the sale before sales tax within thirty (30) days of completion. Contractor will be paid 25% of the sale before sales tax within thirty (30) days of completion on any business or contracts they arrange and do not photograph or perform, 50% of the sale before sales tax within thirty (30) days of completion on any business or contracts they arrange and photograph or perform, or 5% commission before sales tax within thirty (30) days of completion on any business or contracts they refer. Referring Contractor MUST be identified by Client to receive commission payment. If Contractor is NOT identified, Company can not provide commission payment.
What to pay them for helping at shows is a good question. There are several ways, but you need to figure out what works best for you and to be sure they receive decent compensation for their time. A flat $25 $50 or $100 per day, or per event is what I would recommend. However, depending on who they are and friendly your are with them, sometimes buying them lunch and or dinner is sufficient. Hourly minimum wage is an expensive way to go, but is an option.
Greetings all, For those of you who use other people to help with your business, how have you determined what to pay them? I'm still putting together my business plan, but will be using a couple of people I know I can rely on to help or do the inventories; I'm planning to use them as contractors, not employees, but have no clue what to pay / budget for them. Any ideas you are willing to share?
Also will be having a booth at a couple of shows and will need to use them to help man the booths as well. Would you pay the same for that as for the inventories?
Thanks a lot for your ideas. It's been years since I've had my own business and actually paid someone else, so am rather lost at this.
Greetings all,
