How to structure tithing with business growth?
Hi, I want to do a creative arrangement with clients.
I want to help them build their business in exchange for 10% of the gross revenue increase they make while working with me.
Is there a particular way I need to structure that during contracts?
I know Churches currently do this by asking members to tithe 10% of their income. How can I do that similarly in a legal manner? Or do I just need to do it.
Thank you in advance.
I agree with Scott. I do like your idea, but be careful and hire an attorney to draft a document that will protect your interest and that clearly defines how and when you will be paid.
Consult a licensed attorney in the state where you live or do business to draft a contract which will address all potential issues which may arise.
I know Business coaches and sales coaches that do this or some derivative of this. I love this approach as it remove the pay me upfront as as we go where the coach gets paid even if the client fails. I can't do this because I am a leadership coach which get to my suggestion:
Do this only if you can make a very clear, unambiguous agreement with the client where you can very clearly identify measurable outcomes. For example, you get paid 10% of the increased profit quarter-over-quarter. Also you want to make it so you get paid regardless if "outside influences" cause the growth. for example, a new profitable contract just "falls in your client's lap" that has nothing to do with your coaching.
If you feel that the risk is too high then another approach is to have a base fee (maybe half of what you hope to get) plus a percentage of the growth or increase. This way you don't walk a way from a risky adventure with nothing.
Where it is not measurable, you don't want to do it because it becomes an anti-incentive. Such that the client will not be as motivated to be successful because he would have to pay you.
Hope this gives you some ideas.