Referral Fee

Reed Gidez · August 25th, 2009, 09:22 PM

I was recently introduced by a friend to someone who does some photography. One of this person's clients wants a video of her family's history produced and I have been asked to bid on the project. After sending a sample DVD of my work, this person is now interested in providing my services through her company for other potential clients.

Question to the group is whether anyone has a working relationship similar to this and are you charging a flat fee per job referral or a percentage of the final price? The price range for potential work ranges from $700 - $15,000.

This would not be for all of my work but only projects coming through this company's work.

Thanks

Andrew Smith · August 25th, 2009, 09:58 PM

If it's going to be via the other company, then you might as well do it on a percentage basis so that they are effectively doing a markup on your cost to them.

One thing I would recommend is that the onus of ensuring payment arrives is still on them. They get no money until the job is paid for (and have to make sure that the clients are legit and reliable). The last thing you want to be doing is to be tied up chasing for payment.

Andrew

Chris Davis · August 26th, 2009, 09:49 AM

I think a percentage is better, then the other company has some interest in "up selling" your services. But I would not allow them to markup your cost, I'd just pay them a set percentage *after* you get paid from the client.

August 25th, 2009, 09:22 PM	#1
Reed Gidez Major Player Join Date: Sep 2003 Location: Oradell, New Jersey Posts: 283	Referral Fee - flat or percentage I was recently introduced by a friend to someone who does some photography. One of this person's clients wants a video of her family's history produced and I have been asked to bid on the project. After sending a sample DVD of my work, this person is now interested in providing my services through her company for other potential clients. Question to the group is whether anyone has a working relationship similar to this and are you charging a flat fee per job referral or a percentage of the final price? The price range for potential work ranges from $700 - $15,000. This would not be for all of my work but only projects coming through this company's work. Thanks __________________ Reed Gidez

August 25th, 2009, 09:58 PM	#2
Andrew Smith Equal Opportunity Offender Join Date: Feb 2009 Location: Brisbane, Australia Posts: 3,066	If it's going to be via the other company, then you might as well do it on a percentage basis so that they are effectively doing a markup on your cost to them. One thing I would recommend is that the onus of ensuring payment arrives is still on them. They get no money until the job is paid for (and have to make sure that the clients are legit and reliable). The last thing you want to be doing is to be tied up chasing for payment. Andrew

August 26th, 2009, 09:49 AM	#3
Chris Davis Trustee Join Date: Jul 2005 Location: Willmar, MN Posts: 1,400	I think a percentage is better, then the other company has some interest in "up selling" your services. But I would not allow them to markup your cost, I'd just pay them a set percentage after you get paid from the client.