4 ms·

In my market, most consultants bill the customer directly and pay 20% of the first 2 years to each other as finding fee for introducing a new customer. When th

In my market, most consultants bill the customer directly and pay 20% of the first 2 years to each other as finding fee for introducing a new customer. When they subcontract in the fashion you suggest, it is more about keeping the relationship and looking like more of a one stop shop. It's really not a good way for them in terms of numbers and responsibility. I would raise my prices on future business to 1.25x or try 1.5x given the indication the market supports it, and so I could pay fees and costs of finding new customers from my standard rates. I would look to negotiate something that would work in future business in both directions (assuming your friend also does some consulting) making it clear that the more the deal looks like subcontracting the more likely it is a one off deal.

aksss 7y ago
> it is more about keeping the relationship and looking like more of a one stop shop. IME, it's often about the customer trust relationship and convenience. The customer doesn't want to deal with 10 W-9s and managed 10 new vendor relationships, and they trust us to source the other work and warranty it. A good analogy would be a GC in construction.
- yabadabadoes 7y ago
  > A good analogy would be a GC in construction. Yes, and a GC is very much on the hook, dealing with communication and looking to make as much as any subcontractor on the project even if that is by taking a small percentage from each. If a project amounts to work by one subcontractor, I think a busy GC doesn't make an offer.