if someone asked you to develop a buxiban curriculum and be in charge of the teacher you would eventually have to hire… what percentage for each student would you expect as compensation?
just curious
If you’re talking about writing books an collecting royalties, good luck! The education/buxiban market doesn’t really seem to value intellectual property as a commodity and you might be better off just negotiating a fixed price.
If you’re talking about running, managing, promoting and staffing a school, you’ll have to consider what you think your contribution is worth. If it’s a new school that is just opening, and your partners are cognisant of the contribution you will be making, consider asking for a monthly salary, as well as a bi-annual share of the overall profits. If you are completely confident that the school will be a success, you may consider simply opting for a larger percentage, though you’ll be assuming a bigger risk and foregoing a guaranteed level of income.
The percentage you negotiate will depend on a number of factors; how big is the school, what are the enrollment numbers, how many partners and investors are involved. This said, your percentage could range anywhere from 10 to 50%. You didn’t really provide much detail, so it’s hard to put a fixed number on it. Keep in mind that the business culture here usually dictates that cash is king, and as a result, priority of shareholding is usually given to the parties that actually put up the money for the initial investment, the logic being that they are taking all the risk.
Good luck,
CK