A competitor of mine gave me some work that he could not handle recently and we are not sure what sort of finders fee or percentage of work done should be given to him. I was thinking 5% of work done?
What have you other consultants done in this scenario?
Ben
My company get 4% of any bits of cash that goes through its hands.
If you are not on contract with your competitor for the work he gave you, then you legally owe him nothing. However, if you want him to think of you first whenever he needs an extra hand, you should give him some type of finders fee. Your finders fee doesn't have to be a percentage of the work done, but could be a flat fee.
I have found that 3% to 4% is a typical finder's fee in most industries.
Make sure you are paid first - he may of just laid off a bad client onto you :-) - but 5% should do it - like others have said - he will think of you next time.
Jonathan
If he is truly a competitor, go ahead and pay him. If he is a 'colleague' , he shouldn't ask for a finders fee, and maybe you will return the favor some day.
I have a couple of independent contractor 'colleagues', that hand over extra work to each other without fees.
Just my 2 cents
Aaron R. Friedman ARF Designs
Ben Eadie wrote:
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