Register

If this is your first visit, please click the Sign Up now button to begin the process of creating your account so you can begin posting on our forums! The Sign Up process will only take up about a minute of two of your time.

Results 1 to 3 of 3
Like Tree1Likes
  • 1 Post By TheGAME1264

Thread: Finder's fees

  1. #1
    WDF Staff AlphaMare's Avatar
    Join Date
    Oct 2009
    Location
    Montreal, Canada
    Posts
    4,570
    Member #
    20277
    Liked
    878 times

    Finder's fees

    I've not been around for a while - some health issues that are now resolved.
    here's the deal:

    I have an acquaintance who is giving up their web business for at least a year and leaving the country. They have written to me to say they'd like to refer all their clients to me for any ongoing work. I'm delighted, because my client list is pretty short right now due to my having been off the scene for practically the whole winter.

    I agree wholeheartedly, and send them my portfolio, they send me links to the client sites - we discuss and I see that there's nothing I can't handle so we decide they'll go ahead and let everyone know they're leaving and how to contact me.

    Then a couple of days later they write me and tell me that if I get any work from this deal they would like a finder's fee.

    I think about it and it sounds reasonable - after all, if not for them I would not be getting anything at all.
    I do some research and see that most of the talk about finder's fees is about one designer with too many clients sending a referral to another designer, and how that should not entail any fee at all, or a one-time "consultancy" fee...

    I start to think maybe a finder's fee is not such a great idea but I have more or less agreed to it so now i'm thinking, OK, 10% of whatever the first job is for each of them and after that I'm on my own.

    But before I can put that deal to them, they write that they've researched finder's fees and they want 15% of anything I make from these clients on an ongoing basis.

    I'm waffling here - I really need the work but I know they charge the same rate as I do so while the clients would be paying the same I would be earning 15% less. I don't want to take that kind of a hit, but don't feel right about jacking the 15% onto the client's back either.

    I'm looking for any guidance here - this is a totally new situation for me and I am at a loss.
    Good design should never say "Look at me!"
    It should say "Look at this." ~ David Craib


    http://digitalinsite.ca ~ my current site . . info@digitalinsite.ca ~ my email

    If you feel that someone's post helped you fix your problem, answered your question, or just made you feel better, feel free to "Like" their post. The "Like" link is at the bottom right of each post, along side the "reply" link. And if you are being helped here, try to help someone else - pass it on!

  2.  

  3. #2
    Unpaid WDF Intern TheGAME1264's Avatar
    Join Date
    Dec 2002
    Location
    Not from USA
    Posts
    14,485
    Member #
    425
    Liked
    2783 times
    Hi Mare,

    Glad you're better!

    Before your acquaintance goes any further, oDesk (now Upwork) charges 10% ongoing. I believe freelancer.com charges 7% in some cases. So the percentage is too high.

    With that said, how exactly would your acquaintance know what you did/didn't do and how much was charged? Either one of you could stiff the other without the other side know.

    What happens when the person gets back? Big question. Do you lose the clients? Is that the clients' decision?

    What I would suggest is a one-off finders' fee, and here's how I'd calculate it. Your acquaintance should have some record of how much work (s)he did for each client, and what say a year's worth of work is worth. Take that figure and charge a mutually-agreed upon percentage. My suggestion would be 5%, but that's between you two. If a client agrees, send the 5% and that's it.
    AlphaMare likes this.
    If I've helped you out in any way, please pay it forward. My wife and I are walking for Autism Speaks. Please donate, and thanks.

    If someone helped you out, be sure to "Like" their post and/or help them in kind. The "Like" link is on the bottom right of each post, beside the "Share" link.

    My stuff (well, some of it): My bowling alley site | Canadian Postal Code Info (beta)

  4. #3
    WDF Staff AlphaMare's Avatar
    Join Date
    Oct 2009
    Location
    Montreal, Canada
    Posts
    4,570
    Member #
    20277
    Liked
    878 times
    Ah, the voice of reason.
    I have cobbled up a proposal -
    I'll give them 10% of what I make in the first year (I don't want to base it on what they made since I'm basically doing maintenance and updates and they did full sites - big difference in $$). Then after that if I retain the clients I keep it all.
    If they come back to town after a year and want the clients back, then I don't think I should give them anything, as I am only a caretaker in that case.
    Either way, the payout will be at the end of the year, after they know if they're coming back or not.
    Luckily we are both pretty honest - they'll have to take my word for how much I make in the year, and I'll have to take their word for what their future plans are.
    Good design should never say "Look at me!"
    It should say "Look at this." ~ David Craib


    http://digitalinsite.ca ~ my current site . . info@digitalinsite.ca ~ my email

    If you feel that someone's post helped you fix your problem, answered your question, or just made you feel better, feel free to "Like" their post. The "Like" link is at the bottom right of each post, along side the "reply" link. And if you are being helped here, try to help someone else - pass it on!


Remove Ads

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
All times are GMT -6. The time now is 02:07 PM.
Powered by vBulletin® Version 4.2.3
Copyright © 2019 vBulletin Solutions, Inc. All rights reserved.
vBulletin Skin By: PurevB.com