hiring staff...what do you think?

ok so we have alot of fairs,festivals etc coming up this year. Last year we only did 2 because we had just started out but i noticed how incredibly long the line was so this year we decided to hire 2 people to train and paint with us. I made up a contract that they signed stating that they cannot open a face painting business within 50 miles of us and that they are responsible to carry their own liability insurance and that we are not responsible for any liability etc... but was i was trying to plan out now is how it will work financially at the events? I was thinking that they would keep all the PPF they charge but have a set fee that they have to pay at the end of every day of the event to cover expenses, booth fee, paints, brushes etc... we supply everything, they just show up... what do you think would be fair for that fee? and yet not lose money for us? i was thinking between 35-50$ per day?

kilpatrickkreativedesign wrote: I made up a contract that they signed stating that they cannot open a face painting business within 50 miles of us and that they are responsible to carry their own liability insurance and that we are not responsible for any liability etc...
......
cover expenses, booth fee, paints, brushes etc... we supply everything, they just show up...

That's kind of an odd combination - the non compete contract and you supply the paints etc goes together well (but does mean that they can't practice with the paints/brushes), but having them supply the liability instead of operating under yours I would think would lead to them not having it - and since it is your paint and your space the only thing they really could be liable for is their actions (ie poking someone's eye).

Are they painting your designs or does each artist have their own board?

Have you thought of doing a percentage? Sharing the risk/reward if there is a slow crowd/rain/perfect day?

I would take a percentage of their earnings. This is what most festival facepainters do when they hire help. 30% or more, based on what your booth fee expenses are.

I have 7 contract employees (I'm about 4 hours from you between Syr and Roch! )

Our liability insurance covers anyone working in the booth so there is no need for them to carry their own.
I supply all materials, and they are trained in my designs but are able to freestyle if needed...we meet at least once a week for paint training and sometimes more than that. This also makes sure everything coming out of the booth with my name on it is safe and up to standards.

We do have a no-compete clause in our contract that is not only distance but time and contact based (this is a standard in this area for all forms of entertainment). They are not allowed to open a body art business within 100 miles (we travel), for at least 2 years and they are not allowed to use any contacts they meet through working with us.

There is an overhead fee that comes with having a festival booth that we need to make back, so here is the formula I use- and it's in the contract.

There are the sales- what we take in. I take all operation fees from that right off the top.

So if we pull in $2k for a festival where it cost $185 to get into, I subtract the $185 and material costs off the $2k.
The rest is profit. This is what they are paid from.
For example sake we'll say $1785

If I have one artist that isn't me and one hawker...:
I take 20% booking/management fee ($357)
The artist gets 45% (803.25)
The hawker gets 35% (624.75)

If there are two artists and one hawker...:
I take 20% (357) and reset the remainder as 100% to make the math easier.
Each artist gets 35% (624.74 each)
The hawker gets 30% (535.5)

If I am one of the artists, then I remove the booking fee and take the same percentage as an artist.
Keep in mind that my hawkers also do glitter tattoos and handle all transactions to smooth out the lines and make everything go much faster. We tested this a couple years ago and they actually increased our sales by about double, even when only one artist was on deck.

I have one other sub-part to my booth business and I take 20% of their profits as well.

All of this is outlined in our contracts. They also know that the harder they work, the more they get paid. We hammer that into them. I've had contract employees this way for 5 years and it has been really fantastic. All but one (who moved away) have stayed with me the entire time.

I took business and contract law, as well as some accounting, so perhaps it's complex but it works and none of my contractors ever complain. I reevaluate with them each year and they all find it to be completely fair.

Good luck!

I know alot of people either do a 70/30 split or a 50/50 split of their earnings. You still keep all of your PPF. Even though the lines are long that is still your business and it is also business they would not have without u. It percentage you take is kinda a finders fee and to help with the other stuff. And will you be supplying all of the products, brushes, ect? If so I would take a hight cut

Thank you so much for this great info. I'm hiring my first "employee" and have alot of questions.

Question, how do you check they are not booking gigs on their own?
and are having their own business?

Mirandas wrote:Question, how do you check they are not booking gigs on their own?
and are having their own business?

You can't.

I'm actually surprised that signing some sort of no-compete thing just for an employee would even be worth the paper its printed on. It's more of a standard practice when one company buys out another one. If you did have the audacity to make someone sign something like that, you better make sure you have a lawyer draw it up or your just wasting your time.

IMO, Your best bet is to nurture your painters, get busy promoting them, keep them busy, and make them happy enough to work for you....instead of worrying about whether they'll compete with you or not. In anything, whether its clowns, painters, magicians or whatever, the good ones are going to want to set up shop themselves at some point. And they'll find a way even if they did sign your thing. And if they're really good, you may just want to have them on your side.

You can.

Event organizers will tell you when people do that, as long as you have a good rapport with them. This is also why I supply my people with everything. If they don't have it, it's hard for them to promote themselves. I show them how to set up and literally supply them with *everything*- from baby wipes to tent and everything in the middle.

I also send out a new artist with a reliable hawker. I never pair two newbies together.

CrazyPainter, it's a standard practice here for all entertainment agencies and even places like the local Ren Faire. It's not limited to "large companies" at all. I was in pre-law classes, and had one of my professors double check my contract. It's fully legal and will hold up in a court of law, however...

I've never needed it and here's why... my people all have day jobs they like or go to school and are just looking for extra cash. Most are my friends first. I hired one off of a Craigslist ad I posted and she is AMAZING and has become my friend. I supply EVERYTHING, and they know how much of an investment that is, including insurance and fire extinguishers. Every detail outside of the paints is covered. I do all of the promotion and marketing to get them more work. I fill out all of the applications and pay all fees. They have sat and watched me go through the mountain of paperwork as they practiced. I am efficient, organized and as my right hand artist said to me the other day she "could never be so organized and run something like this." I pay them well and in a timely fashion, and all of it is outlined in the contract. I treat them with respect. I don't just send them to the crappy places I don't want to go to, I send them to the large ppf ones and to private bookings as well. I train them well, and continually- to keep them from being bored. I never ask them to do anything I won't do myself. Ever. I never ask them to put their own money into it. I listen to them and I take their thoughts and concerns into consideration, and I address any issues immediately. In the past two years we've had two crappy events, I took the hit on both of those to pay them fairly...and they knew it (though I didn't broadcast it). I send them out with all of the information they need to never feel lost or confused. I check on them to make sure they are okay, and if they need a break, I redo the schedule for them. A burned out artist is not a good one. I get to know them and their strengths and I play to them when doing bookings. It's about respecting every aspect of the people who work for and with me...and they don't leave.

I have had one of my employees since I started this business. I had one for 3 years before he moved away for school and this crew has been with me two years and all have signed on for next season, already. I will also be hiring more people as I expand again next season. The loyalty doesn't come from the piece of paper, but it sure as hell helps my piece of mind when someone new comes on board.

Oh! And I include my employees in my hiring process. If they don't get along with someone in the booth, then there is a huge problem so it's imperative that I get their thoughts and feelings on anyone new that I bring in.

I treat this like a family business, because that's what it is. This business is my baby, my love, and this AMAZING crew I have are not just employees, they are people I value and love.