velebak

Recently, my side web development business has taken an interesting turn.

One current hourly client and one potential client have both approached me with revenue cut offers in exchange for long term arrangements and a reduced hourly rate. At first, I shunned such an arrangement, but now realize I may be losing an opportunity and an ability to guarantee some level of future revenue. It may even be possible to earn more than I do right now in my current full-time job.

Both clients have stated they want a long term partner for the development of their web offerings, and feel offering a revenue stake is their best path to get there.

What questions should I be asking? How are agreements like this typically structured?

I'm asking so when I speak with a lawyer I have some semblance of the key points with which I should be concerned. I'm sure other HN folks have been offered similar choices, and I'm having a hard time getting out of the "my time and experience is worth X per hour and any other arrangement is ripping me off" mindset.

I'd like to hear what you folks think, or if you have had experience in arrangements like this.

Thanks!