A friend of mine has a fairly well-established business that wants to go more online. They are in the homeware textile and fabric industry. They have a website, which is pretty bad (loads very slow, payment gateway off site, etc), but it does about 20K USD (net) monthly just from her emails and from existing customers who bought from her physical stores (there were 3 but covid caused them all to close down – hence going more into e-commerce)
I currently have 2 ecommerce stores I setup and run, and when she heard I was into e-commerce she asked if i would like to help her. She doesn't have too much capital to pay a flat fee (stores closed down) so she has asked if she can pay me a commission instead. I kinda want this as i think her business has very good potential.
In saying this, I have no clue as to what sort of commission I would want from them.
They would need me to oversee the transition from Eclid to shopify, a brand new website, and marketing. The email marketing chaneels right now would be FB/Insta, google, Pinterest and email (email is proving to work great so far).
I know FB/Insta and google pretty well so can run these, however, pinterest and email i might outsource.
We talked about paying me a smaller commission under the 20k mark and then a higher commission for anything over 20k for the first year, then review and decrease commission after the 12months.
We see the business doing at least 50k within 6 months and 100k within 12 months (net).
Their current margins(net profit) are about 40%.
Im at wits end as to what sort of commission to charge now and then after the 12months.
Any advice or recommendations would be of great help.