Collaborating with other designers/artists - advice?

Re: Collaborating with other designers/artists

First off I should mention to get it out of the way, I haven't done a brand X brand collaboration (i.e. I've collaborated on work, but not brand to brand). @seibei has done a couple, if you wanted to contact someone who might have specific insight.

Personally I don't see it as dramatically different to any other kind of business relationship or partnership though. Each party needs to analyse what they bring to the table, and negotiate for a fair settlement based on the work, equity, and exposure being brought.

I think the most important thing is to start with the right attitude, namely "that both parties gain from the collaboration". So you've got that covered.

Division of funds in a collab is the trickiest part, for sure. I think there are a few things to look at, 1) Who is bearing the risk? 2) Who is most likely to bring in the most sales? (or other intangible benefits if relevant, like perceived legitimacy, media exposure, etc.) 3) Who is doing the work?

I like to keep things simple. So my attitude would be to start by assuming a 50/50 split, then add percentage points to each variable, and allocate accordingly.

So... if one party is putting up all the money, that's +10% to them.

If one party has the better name or sales channel or connections, that's +10% to them.

If one party is doing all the work, maybe 5% to them (this is the one I'd be most likely to abandon though, since it's the one most likely to create hostilities).

So you might end up with a 75/25 split, if one party is bringing very little to the table. Or something like 65/35 if it's a lopsided arrangement.

Ideally though, I'd want it to be 50/50. So there are three ways you can get it there. 1) Not care if you're doing the lion's share of the work, just to not rock the boat. 2) Make sure there's a fair division of labour. 3) Do more than one collaboration, each playing to the other person's strengths, so that the two lopsided endeavours balance each other out evenly (that would probably be my preferred option).

Unlike hiring an artist, where terms are generally dictated by the less desperate party and either agreed to or declined, a collab should be a meeting of peers. Ideally you need each other, so there isn't the same level of power imbalance. With that in mind, I think rather than dividing up funds 'however you choose', it's better to negotiate. But certainly do have a figure in mind to propose, and why.

Is she selling any product herself, or is it all being sold through your site? What is she bringing to this collab? So far I'm seeing your design, your money, your work, your risk, you're fulfilling the orders, etc. On the basis of that... I'd say she'd need to be a much bigger fish than you to justify a 50/50 split.

50/50 is always nicer though, so if there are enough intangibles and, back to your earlier point, "parties gain from the collaboration" then that's good.

Just make sure you are actually gaining something though. On paper it doesn't sound like a very good deal for you, but I can see how in reality with all the specifics it would (or could) be.

One thing I'll add is: make sure you write up a contract, laying out each party's obligations, investments, and returns. This is exactly the sort of thing companies sue each other over if there is inadequate communication, or a breakdown in the relationship.

Good luck.

LYF Apparel said:

The thing is the other party doesn't have anything to add nor suffers any risks as I do coming out of pocket. She basically wins. How would 50/50 be justified in a setting like this?

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It doesn't sound like it is, unless you're more desperate than she is, and she's willing to walk away from the idea more than you are.

LYF Apparel said:

I have not yet presented any specifics with the other party yet as I don't really know how to (i know sounds crazy and I threw the collaboration idea out there).

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It doesn't really sound crazy; these kind of social situations can be awkward. It's not like you're buying a coffee or talking about the gig you went to last night - this is new territory for you to navigate, so you have to learn it.

LYF Apparel said:

How would I relay the plan to her or should I ask for some suggestions from her as well and see how she feels about it?

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Personally I think dialogue and honesty is good, even if it can result in hurt feelings. For example, if you say "I'm spending the money and taking on the risk, as well as doing all of the design work, so I feel like it's only fair that I get a higher proportion of the profits." she might be offended because she sees her role as somehow equal in value to those things. Personally I think it's better to have clear air and clear terms, so it's worth the risk. Better to have a falling out now before you've done any business together than later when you have an entwined co-branded product to fight over.

You could try putting it in terms of an offer: Since I'm paying the money and doing the design work, I think it should be a 60/40 (or 70/30 or whatever) split, but if you'd like to invest in the project I'm happy to split everything down the middle.

If it comes across that you're doing X, and if she'd like to meet you half way by doing Y it should come across as less confrontational.

Just be open to any counter-arguments; if she points out she does such and such (like "Well, I spend $350/month on advertising, whereas you spend $0/month, and I'm going to include this collab and your brand name in these ads.") then be open minded.

Just don't be swayed by non-arguments like "I just thought we'd make it even!" or "I'm more successful, so really I'm only doing this as a favour..." (maybe valid if she can back that up with financial statements, but not otherwise).

Another way to sidestep the issue is to re-frame it. Go in assuming a 50/50 split. Tell her about what you are going to do toward your 50%. Ask her what she is going to do to merit her 50% (um, ask nicer than that obviously ). Be excited about action. "I'm going to do this! Won't that be good? Hey, what can you do for us? Great!" Instead of making the partnership about what someone isn't doing, make it about what else you can do to help each other. Encourage and expect more.

This is where contracts are good though, because if someone is dragging their feet you want to be able to point out "Look, you are meant to be spending money on advertising... we did agree to it."