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Fair Share?

Keys to negotiating your piece of the action.

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This story appears in the March 2007 issue of Entrepreneur. Subscribe »

When deal-makers talk about their slice of the pie, they mean some kind of commission, royalty or equity participation, usually calculated as a percentage. Sound simple? It's not.

First, what's the percentage based on? Is it on gross or net? If it's net, what comes off the top? Crunch some numbers to make sure you understand the calculation. Also, consider whether there is a floor or a ceiling on the total payable.

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