I was recently asked to design a handbag for a magazine that is named after a type of purse. They want to use my name on the bag as well, and this bag will be a permanent fixture in the magazine in conjunction with their logo. I’ve been making bags by hand for at least two years and my designs have been very well received. They will be ordering bags for me to make as well. I can handle that part, but I’m a little unsure what my design fee should be? Should that be separate from my time and labor? Also, how do I go about setting a fee for the use of my name, is that when royalties kick in or what? This is all new to me, and I’d appreciate any advice. Thanks
a percentage of revenue in exchange for the use of your name is a fabulous way to generate income and to build your brand. It represents little/no risk to your customer and provides you with an investment in your customers business. these agreement are usually in the 1-5% range depending on volume and price.
In addition, simply charge your normal fees.
Mark