There are a variety of answers to this question. Suffice it to say that with design - you can find a variety of artists that will work for a variety of different compensation packages - usually dependent upon their skill level and experience. Â a) A good designer is usually about $65-$110 per hour, depending upon the market.
I say this with an important caveat. There are great design firms out there that can design extraordinary product design for a lot of money. There are also great designers out there that work in smaller markets - or that are up and coming that can design great products for you - for less money.
 If I had a particular product I wanted developed, I'd send out a "request for proposals. " Ask people to submit examples of their work and an estimated fee for their work on a particular project.  b) Obviously, the best compensation package for you would be to pay someone a per-project fee or an agreed upon sum for a per-hr.
Basis for developing a project. There are many people that would agree to work for this rather than offering them a cut of the company. C) You would be amazed at how many graphic artists/product people would jump at the chance to create a design for a product line.
The key is finding someone with solid design skills that can help you create what you need. To be candid, many graphic artists are not savvy enough to ask for a cut of the product line. If you put an project out to bid - you're going to get a variety of artists that will want the work.
Look at examples of their work - make sure they have a track market in supplying design that works - that markets effectively. Choose a company that can hear your wants and desires and has a working knowledge of how to market a product effectively to your consumer group.
Personally, I suggest you ask for bids from product designers, that way you will be able to view their portfolios as well as be able to determine a the current market value. Once you have decided on your top 3 candidates, discuss reasonable project/milestones and incentives directly with them. It is important to consider that a deadline might not be met because your company has not provided the contractor with all the tools they need to meet the deadline.
You may also want to contact IDSA Industrial Designers Society of America for assistance. Industrial Designers Society of America: Industrial Designers Society of America A calculator to determine freelance rates: freelanceswitch.com/rates.
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