Patent Attorney and Founder
If I design a logo for someone, say, for a clothing brand, should I charge a one-time fee or take a small percentage of each item sold?
That’s a fair question. From a legal standpoint, I usually represent trademark owners, so I tend to favor the idea that once a client pays for a logo, they should own it outright. But really, this isn’t just a trademark issue; it’s more of a contract question.
You can structure it however you want. If both sides agree, you could ask for 1%, 5%, or even 10% of sales. The problem? That setup usually turns into a management nightmare. You’d have to track every sale, trust the reports, and constantly follow up to make sure you’re getting paid correctly. Most designers don’t want that kind of hassle, and neither do their clients.
That’s why most people use what’s called a “Work Made for Hire” agreement. It’s simple:
- The client pays you upfront for your creative work.
- You hand over full ownership of the logo once payment is made.
It’s clean, predictable, and avoids future disputes.
If you want to protect yourself, make sure your agreement spells out the scope of work, payment terms, and ownership transfer clearly. That way, everyone knows exactly what they’re getting, and no one has to chase down percentages later.