Best way to communicate with new client as a freelance graphic designer?

A site design starts for free, then ideas are involved, and after the launch the designer requests a large cash payment or 20% equity?

• The site was originally started as a favor to support the companies mission, to help a good friend, and to be a key part in the designers new freelance portfolio. The site turned into more work on everyones part then planned and the designer of the site by his own will started to input his ideas and thoughts into the re-launch of the brand.  It was partially the owners liability for not communicating the business standings as the work load grew and the designer became more involved.  But it was also the designers responsibility to communicate if he felt the work was growing beyond the original agreement or he had a specific ownership amount in mind for his ideas. We are great friends, so there was that assumption everything would be handeled perfectly. There was no communication during the process by either the business owner or the designer about the designers hourly rate, or any designated switch from pro bono to contracted work. Toward the tail end of the site the designer mentioned he would like to be apart of the brand moving forward. Due to needing to focus on launching the site, and the owner needing to conduct advice on the best way to move forward, the conversation was put off. Up to this point the designer has offered the site design, along with his ideas and advice to make the launch of the brand the best it could be. Moving forward the designer wants to be involved very part time with an advisory role of "ideas, input and advice." There is nothing signed, no contract in existance. But am wanting to handle the situation very fairly and honor the work that was completed, while also moving forward with the brands best interest in mind. His skills are great, match the company very well, he has a lot of design experience in his field, great friend, and worked hard on the site. When he speaks of ownership he is talking in the realm of 20% My question lies in what you professionals would recommend the best way to move forward. If is in the best interested to pursue ownership? If so how much is normal with part time involvement, near to no risk taken, and his responsibilities being web design, brand ideas and advice, and some print design? Or if we are going towards a one time buy out agreement for his work up to this point, and he will paid a one time sum at an agreed upon company net profit, while being on the board of directors until that sum is paid, what ROI is standard in a similar situation? Any help is so appreciated! I am very new to the game. Thanks so much!

• Answer:

  This is a classic example of what happens when you don't get it in writing.  Worse, under patent, copyright and related intellectual property laws, unless there is a written agreement pursuant to which the freelancer assigns his ownership of the work product to the company, he (and not the company) owns the work product.  At best, the company only has an implied, non-exclusive license to use the work product.    You otherwise sound happy with his work product.  For that reason, I recommend that you sit down with him and work out a mutually acceptable compensation arragement and, as part of that arrangment, get clean title to the work product.  Search Quora for what are market rates for someone like him, and see if you are able to move him to a more reasonable expectation.   Disclaimer.  All of my responses on Quora are subject to the Disclaimer set forth in my Quora Profile.