Hire as consultant

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Hire as consultant

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abc1111

posts: 88

Dec 02, 2007 7:28 PM ET Quote Report Abuse

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I need to hire some people for a very specific task and give them soem money based on a specific milesone (nothing if milestone not reached). I would like to avoid hiring them within my company at this point. Can I hire them as consultant? Do they need to have a special license to be consultant, or can I basically hire anybody I know as consultant?

sagetrout

posts: 28

Dec 02, 2007 10:19 PM ET Quote Report Abuse

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I think what you`re talking about is a "contingent fee" arrangement. They get paid if they succeed in meeting your milestone.

While such agreements are possible, your question is missing a lot of important information. Most important is what is the scope of work? What do you want the consultant to accomplish? How can the consultant be certain they will be paid if they succeed in meeting your milestone?

You can hire anyone you want on a consulting basis. For the most part it doesn`t require a license unless the work they are doing requires a license under state law.

I`ve done consulting and my biggest concerns if I had a proposal like yours would be the definition of this milestone, and if I met it, would you be able to make payment. It`s difficult to imagine a consulting expending a lot of time and energy on something unless they have strong assurances of payment.

In my current business, my fees are contingent in most cases. I don`t get paid unless I successfully get financing for a business, and that`s why I`m careful about qualifying a business and a business owner before I take them on as a client. You`d need to convince me you`re worth the effort although fortunately I woudn`t have to rely on your promise for payment because I`m paid by the company doing the funding.

-------------------------

Doug Atherton
Regional Vice President
Equity Corporate Finance, Inc.
DouglasA@equitycorpfinace.com
888-498-8999 ext. 109

nhgnikole

posts: 2660

Dec 03, 2007 12:55 PM ET Quote Report Abuse

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I have hired several people and pay per project, not hourly, so that is kind of what you are talking about no? For example, someone gets paid $xx upon delivery of a graphics package.

You can hire anyone as a contractor, which is a 1099 position. If they are working on your property regularly, attending meetings, etc though, they may be in w-2 territory.

abc1111

posts: 88

Dec 03, 2007 1:28 PM ET Quote Report Abuse

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Did you have a formal contract with them? If so, where can I find a template? It is indeed simple, if you get this done, then you have this % of the profit.

CraigL

posts: 9051

Dec 03, 2007 7:42 PM ET Quote Report Abuse

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Nikole said it: they`re contractors, and you send them a 1099 form for tax purposes. You`re not responsible for how they go from there, with the gov`t. No, they don`t need a license, but that`s your risk, not theirs.

As for a contract, the main reason is going to be the fee-for-service with contingencies listed---your "milestones." You`d be better off having an attorney draw it up, rather than try to get a boilerplate template. If you don`t have a lot of money, you might try speaking with a paralegal.

The problem with these types of situations is that if the contractor fails to meet obligations, what are you going to do, sue them? For what?

SandraP

posts: 76

Dec 03, 2007 7:53 PM ET Quote Report Abuse

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Depending upon what the work is you might try contacting me about a Virtual Assistant. Another option in elance.com which may be more appropriate just from the little information you have given.

I`d be happy to answer any questions, my contact information is in my signature.

Good luck!~Sandra

-------------------------

Sandra Pearson
The Mompreneur Next Door
www.themompreneurnextdoor.com
sandra@themompreneurnextdoor.com

abc1111

posts: 88

Dec 04, 2007 1:58 AM ET Quote Report Abuse

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Any particular site to suggest to download a consultant contract?

It is very simple. I need someone in Sales & Marketing.

If they get a sale they get x% of it.

If they publish an article, they get $x

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