Referral/commission agreement

[Nick Griffin]

The consensus that I’m getting from all of you is that this should be either a time-limited deal, a declining percentage over time or even a one time deal. I would like to suggest that the whole thing would be a lot more straightforward if the guy providing the referral were working on the projects as a “producer” or at the least as some form of account executive whose job was handling most of the client contact and approval. At least that way it wouldn’t feel so much like a kickback or a transaction that the client might see as something under the table. Working on the project would also justify a higher percentage, hence more motivation for him to feed more work into the process.

[John Baumchen]

Look at it as a commission, as if he were a salesman for your company, which in essence, he is. Many sales people don’t get involved in the heavy lifting of actually doing the work, they just find the clients and sell the services.

[Pat Chrysalis]

I am a freelance instructional designer and just discovered Creative Cow. This is a great resouce! Thanks to all of you who participate and share your knowledge and experience.

I just posted on another thread an ethical dilemma regarding a non-compete clause with a recruiter ( https://forums.creativecow.net/readpost/17/873388 ). Having read this thread, I now think that I will not sign the non-compete clause, but I will offer the recruiter 10% for any additional contracts stemming from is efforts. I think that’s fair to the recruiter and to the clients. And, as you say, it may motivate the recruiter to find more contracts for me than if I just told him flat-out “No” to the non-compete clause.

Thank you all!

[Reuben Fink]

Would this be 10% of Net or Gross?

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