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Subject:
Finder's Fee Commission
Category: Business and Money > Advertising and Marketing Asked by: jag987-ga List Price: $50.00 |
Posted:
02 May 2006 14:49 PDT
Expires: 01 Jun 2006 14:49 PDT Question ID: 724835 |
We are an enterprise software company that is looking to move into a new vertical for our products. We are discussing a referral arrangement with a person who is well-connected in that vertical. What is the typical % of Sales that is paid as a Finder's Fee? This person would make high-level introductions and be a part of the initial sales process, but not involved in the closing process. |
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There is no answer at this time. |
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Subject:
Re: Finder's Fee Commission
From: frde-ga on 04 May 2006 06:34 PDT |
30% - and 30% of the annual, while he continues to pull in new business that exceeds that of last year. I once wrote the commission system for a US stock broker - they were paying 60% - to their traders - for a one off hit, 50% is a pretty rational commission. You are, hopefully, in it for the long term, programmers find it hard to deal with salesmen - salesmen normally go for the short term - vertical market programmers are thinking 5 years ahead Salesmen are only good for new business, after that they are a liability. |
Subject:
Re: Finder's Fee Commission
From: jag987-ga on 05 May 2006 13:52 PDT |
I can't imagine paying a 30% finders fee to someone for making an introduction and not being invovled in the subsequent sales process |
Subject:
Re: Finder's Fee Commission
From: frde-ga on 06 May 2006 04:36 PDT |
@jag987-ga I guess you are not in the software business - actually in most industries sales costs are very high I can think of industries where they are prepared to hand over total margin for the intro - because they want the 12 month repeat business. |
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