For contract work, should I accept lower pay in exchange for a percentage of the profits?

Question

I'm doing some contract computer programming work at $70 an hour. They're offering me a slightly lower rate of pay, in exchange for a percentage of the project's profits.

So, how can I decide if this is a good idea or not? How much should the percentage be? I have no idea how much profit the project will make!

Answer 1

You have to do your own analysis with this... take into consideration your current economic situation, if you can afford to take a lower pay rate without it affecting your day-to-day living then may be its worth a shot... Also research the project your going to be working on, check company history and projections, if available, would be great. If not, try researching similar products and see how they did compared to the market (which isnt doing so hot right now) another consideration.. Basically it comes down to a gamble and if you can afford to take it ... The research will just make you feel more comfortable because in reality any new project is 50/50