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Finder's Fee. Not the usual kind.

By AndrewGross ·
I have a consultant friend who has asked for advice in this unusual situation. He currently does subcontracting for one firm (the "primary" firm) that is a one-person outfit that doesn't do any technical work, per se, but subcontracts out all the work. This one person shop has offered to turn over the reigns of their shop for a few months (for personal reasons) to my friend in exchange for a finder's fee. After my friend does work for any new clients, the clients would then be the "property"of my friend, not the primary firm. My friend is trying to work out a finder's fee arrangement and has asked me for advice. I think it would be reasonable for him to turn over 1/2 of all receipts for the first job he does for new client up to butnot to exceed one day's billing. Has anyone been in this sort of arrangement before? Any thoughts on this finder's fee structure?


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by James Goerke In reply to Finder's Fee. Not the us ...

I have not personally been in this sort of situation but I can tell you that a "Finders Fee" or reputation fee is something that should be in place. However, if the person owning the reputation to which attracts the customers is not present and actively doing anything to make the job easier for the consultant the fee of 1/2 service seems a bit much, I would possibly consider 10-15% would be reasonable in this situation.

James Goerke
TheGeex Technologies
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