davo

A virtual Company

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I have a moderate work load of sites that I develope. Some times I get more than I can handle. Some times I have more than my current skill level can handle.

I'd like to expand my sole trading business to work with some more designers developers. Nothing too heavy, but I'd like to have on board some people that would like to take on jobs and be featured on my website as a developer.

In return, each of the people should be able to feature each of the developers on their own website as their virtual company.

The idea being that the local contact can arrange face to face meetings, specs etc and any of the remote workers can take on parts or all of the projects.

I'd be very interested to know if anyone would be interested in this concept, what they typically expect as payment and any other thoughts.

Feel free to reply to this topic for public forum chat or pm.

David

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I'm doing this now. I have 10-12 partners who are businesses and freelancers. We are all on each-other's websites and white label our services so the client is billed under one business. It's a very scalable way to do business. Not only can you get prices down for your client, but you can grow your business on a moments notice to support larger clients/jobs.

The key is finding reliable, honest people who can trust implicitly. They also need to share your values, because they are representing you and/or your business. In terms of pricing, we generally offer each other wholesale pricing (50% discount) for hourly work. Sometimes the project is managed by the professional who's providing the work and we don't deal directly with each-other's clients. Other times we deal directly with the client, which sometimes mean extra overhead and an increase in hourly rate.

Generally I try to pay as much as I can, so I like to also do percentages on higher profit jobs. For example, if it only costs $500 dollars to pay someone hourly to complete a project, but I'm billing the client $10,000, then I would offer a percentage of the contract price based on the amount of value or time the partner is providing. In this case (using the example above) half of the contract price would go to biz expenses and labor, 30% to marketing, and 20% or $2,000 would go to the partner for their labor. The percentage I offer depends on the project and the health of my business. I also like the percentage pricing, because it's generally what I can afford, while also being the highest amount I can pay my partners. When business is good, I can offer more, when it's not good, I have to spend more on marketing so my offer is less. I go down my list of contacts, starting with the best match, until I find someone who's interested in the work at the price I can afford. 

Send me your website or work samples. If I can utilize your talents I'll start offering you work. 

-steve.

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