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Q: Finder's Fee Commission ( No Answer,   3 Comments )
Question  
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.
Answer  
There is no answer at this time.

Comments  
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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