I thought splitting profits 50/50 with a partner agency was the only fair way, but a project in Portland changed my mind.

We teamed up with a web dev shop on a big client site rebuild. They handled all the back-end coding, which was about 70% of the total work hours. We did the design and project management. After three months, I realized a straight 50/50 split meant we were getting paid more for less actual build time. We switched to a model where we each invoice for our actual hours at our rates, then split the project management fee. It felt messy at first, but it was way more fair. Anyone else moved away from flat profit splits to something more detailed?

2 comments

2 Comments

jennyh415d ago

Totally get that feeling of an unfair split. We had a similar thing happen on a joint bid last year. Switching to hourly for the actual work just makes more sense.

terry_thomas5d ago

Hourly billing saved so many headaches for us too! It just feels more fair when the work gets messy.