Wayne Harney Posted January 17, 2008 Share Posted January 17, 2008 Hey I'm in the process of going freelance full time. I have a couple businesses in town interested in partnering with me by sending rendering jobs to me via there contacts in exchange for a "finders" fee which will probably be a percentage. One business is a print shop and the other is a drafting firm, both could potentially subcontract a lot of work to me. I'm just trying to figure out what a fair percentage would be. Is there anyone in this situation? I'm thinking 20% off the top of my head (especially if they take care of the billing) but I really have no idea how to go about this. Link to comment Share on other sites More sharing options...
EddieLeon Posted January 18, 2008 Share Posted January 18, 2008 10% or 15% is better. This commission is usually added to your regular fee. A 20% commission might make you too expensive. Also, you should try to contract directly with the client instead of your business partner. There are several reasons for this. If you have any problems with the client, such as non-payment, you will be able to take legal action. Also, you will want to be managing the relationship and getting their repeat business. Link to comment Share on other sites More sharing options...
aaron-cds Posted January 18, 2008 Share Posted January 18, 2008 Tell them you'll gladly accept referrals but say no thanks to paying a commission. Collect your own fees and form your own relationships. Once you're on your own, consider yourself a business that performs a service, not a sub-consultant. Link to comment Share on other sites More sharing options...
BrianKitts Posted January 18, 2008 Share Posted January 18, 2008 I don't see a problem with giving a referral bonus to people who throw you jobs, but as mentioned you need to have the direct contact with the client. I had a freelance job go horribly wrong last year, because the advertising agency that I was working the job for was not successfully conveying the clients wishes to me, and they ended up blowing the project. Project fell through, client dumped them and went and found another person to do the renderings. In that arrangement I was transparent to the client he thought the "render guy" was in house and they were tacking on their fee to what I billed them and passed it on to the client. Needless to say I don't work that way anymore as it was a really bad arrangement. Luckily though the one guy from the advert company felt bad and still paid me my fees, even though they could no longer bill the client. lesson learned... Link to comment Share on other sites More sharing options...
aaron-cds Posted January 18, 2008 Share Posted January 18, 2008 Exactly Brian. Third party agreements are not ideal for our business. If they can't be avoided you should still have direct contact with the one who's paying for the service. Link to comment Share on other sites More sharing options...
Wayne Harney Posted January 18, 2008 Author Share Posted January 18, 2008 Good point about maintaining contact with the end client. Flow of accurate information is crucial. I'm thinking of breaking down 3rd party commission by task. x% finders fee x% or x$ billing and collecting x% or x$ media delivery etc. This way on subsequent projects with the same client I could keep the 3rd party involved (if they want to be) without paying repeat finders fees. I should point out that personally (given the choice) I'd rather be a subconsultant and not have to deal with advertising and billing/collecting etc. Just my choice. Link to comment Share on other sites More sharing options...
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