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How much for a finder fee?

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Hi everyone,

 

A graphic designer gets enquiries for web design work. He does the graphic part (PSD mockups) while I do the development part. He charges according to time spent, same as me.

 

But on top of that he wants a 15% finder fee.

 

What do you think of such arrangement, is it fair ?

I think it depends on how much more you earn from each deal than he does as to what percentage if any he could reasonably ask for

15% fee is in the 'normal price bracket' for a referral considering you have not had to spend money to get that client (where as the graphic designer may have).

 

Of course you dont have to pay it him, but then you risk losing out on work, so it is something you have to balance. Also, could you not send him clients or work, if you need graphics doing? Maybe put that too him?

  • Author

@rallport : what do you mean by « Unless something has been agreed in advance » ?

 

@cheapdesigner : sometimes each of us earns half, sometimes I get twice what he gets (more development work than design work)

 

@jamesosix : I do have to pay him, it's something he proposes to me as a requirement. I will rarely send him work, it's mostly unidirectional (he outsouces development work to me)

Honestly, finder fees p*** me off because all they typically do is forward or write an email. To me thats not worth 15% of the work that I am doing. Any one who asks a finder fee from me I tell them to p*** off.

 

Sound mean, but it is what it is.

well its up to you, you can either cut him off and not worry about having to pay his finder fee and source your own work, or pay his fee and have work that you have not had to market and try and get.

 

Take my website review for example - I get clients who want work doing and often ask me if I can recommend anybody - which I do, but I would still expect some form of reward from said designer/developer for passing them work, that they have literally had to do nothing to get the work (other than provide a quote). You could say its unfair, or I would favour the developer who offers me more money, but I dont. I pick the best person for that job.

Edited by jamesosix

Honestly, finder fees p*** me off because all they typically do is forward or write an email. To me thats not worth 15% of the work that I am doing. Any one who asks a finder fee from me I tell them to p*** off.

 

Sound mean, but it is what it is.

Really, how much time and money do you spend on marketing each month? How much time and lost money did you spend on the client that you never see?

 

If you get asked to do a design or code the job and that's it, you have ZERO effort elsewhere and simply cannot expect the full going rate.

 

If you want the full going rate you don't work for other people and do all the leg work yourself.

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