Need Help Figuring Rate of Pay 4 Marketing & Sales of New Product-?

Low Profit Margin Biz, (Portable Pillows & Body Rubs) starting from scratch. 10-15 hr wkly commitment and market will be internet, unique stores, practitioners, workshops… maybe a few other ideas.
I will be building the sales department myself. Little money for advertising.
We are pretty settled on 15% Sales Commission.
But I want to get a contract amount for the Start Up Facite of this position. Its not like I’m a partner or anything soooo… I want to get compensated for getting the whole thing off the ground.
As if a Marketing Group were contracted to help get her off the ground. Any ideas of how to figure a fair sum?
We also need to make some estimates as to what our earnings will be. Any ideas or formulas for this too?
Thanks a Buch For Any Input!
ChandraWellness
in2it4life.com

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One Response to Need Help Figuring Rate of Pay 4 Marketing & Sales of New Product-?

  1. The best way to start an estimate like this would be to forecast your hours of labor, and determine your non-labor costs. Estimating labor (hours) is a skill that improves with experience.

    – List all of the tasks that you think are necessary to successfully complete the effort.
    –Go over the list again, looking for missed tasks.
    –Break down large tasks if you aren’t confident you can esitmate the time well.
    –Assign a time to each item. Be honest with yourself; don’t be overly optimistic.
    –Review the list and look for missed items. (Ugh! Again!)
    –Determine what your confidence level is in your estimates.
    –Experts may say that you shouldn’t add a percentage on a n estimate, but many, many people do.
    –Add up your hours and multiply by the hourly rate you expect for your work.
    –Add non-labor costs to the labor costs.
    –Take this into negotiation. (Some people will add a clause in their contracts that addresses overruns.)

    When you are done with your project, you can easily look back and see where you made mistakes with your estimations. Realize that many tasks cannot be locked in–they could take 10 hours, they could take 100, depending upon the hurdles you face along your path. (That doesn’t mean you don’t estimate, of course. It just means it’s not a task that yields perfect results.)

    Good luck!

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