Last year somebody reached out to me and mentioned that they had a client they couldn’t take on so they wanted to pass them my way. I got some basic details about the project and it seemed like we’d be a good fit for what the client needed, so I said send ‘em over. The person said, “OK and then when you land the client, you can send me a 10% finder’s fee.” Without thinking much about it, I agreed. After getting off the phone and giving it some thought, I wasn’t really sure how I felt about it. On one hand, I may not have ever found that client, so getting 90% of something is better than 100% of nothing. But, on the other hand, the other developer was overloaded and wouldn’t have taken the project anyway and I felt like they were just trying to capitalize as they sent the client away. Either way, I wasn’t really happy. And, as luck would have it, it didn’t work out and we didn’t land the client so I didn’t have to deal with it anyway.
I go to a fair amount of WordCamps around the country with a bunch of other WordPress developers. When hanging out and talking with non-developers, one question that comes up from time to time is “Who is your competition?” My answer is always the same, “Everybody here. And nobody.”
I’m currently fielding more project enquiries than I could handle. Hell, my current project list is already insane and I’m telling anybody who calls that I’m booked through the middle of next month. And when they say that they can’t wait that long to get started, the next thing I do is send them an email with a list of other WordPress developers I know who may be able to squeeze them in. No request for a finder’s fee. Just trying to connect somebody who needs work done with somebody who may have time to do some work.
This past week I had another request from somebody asking for a finder’s fee. I politely told them that I don’t offer a finder’s fee and if they wanted to send the project to somebody else instead, that was fine with me. Once again, when I got off the phone, I stopped to think about the conversation. I’m wondering if I’m going about this all wrong? Am I missing out on a grip of cash by not requesting a finder’s fee from people I send leads to?
Oh, right, I almost forgot… I don’t care.
Here’s my thinking; if you are only interested in sending me the lead because you’re looking for a slice off the top as the client leaves your hands, do me a favor and just don’t send them my way. If you spent time with the client ahead of time and helped them sort out their RFP, you definitely should be paid for that. There’s even a word for what you did. They call it consulting. Consultants get paid. By the client. I am not your client.
So, yeah. After having some time to think about it, I’ll just go on record and say, “No, I will not send you a finder’s fee”. I’ll have to list this post right next to my “No, I will not sign your NDA post”
I’m curious what you think. What’s your take on finder’s fees? Do you ask for them? Do you pay them? Leave a comment and give me your angle on it.
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Hey John, I am totally with you on this. I have had the same happen, people want to build these so called relationships only to find out they want a finders fee, or referral percentage. I’ve even been asked what mine is? Which is zero.
I have been doing business for 24+ years and have never done this. I’m like you. I know good people out there that could use the work, and if something doesn’t fit in my schedule, or isn’t in my scope of services, well, I’ll give their name out, with no expectations. That’s how I have built some of my best business relationships, not on the almighty dollar.
But I don’t criticize anyone who does this. If it works for them, and that’s how they do business, all the power to them. It’s just not how I work, nor will it ever be. I’m in the mindset, “what goes around comes around”. And there is nothing truer than that with the WordPress community.
Great post!
Thanks Bob. I figured it wasn’t just me.
I also don’t criticize those that ask. I just think they may need to put some thought in to it before they ask.
I’ve been on both sides of that fence. Heck, I might have been the guy you were talking about a year ago.
A year later, I pretty much agree with you. I’ve been smoked by the down side of a finder’s fee with someone who was lesser known to me. So, I am pretty much against the idea now.
What I do think is appropriate, and I’ve been on both sides of this as well, is a courtesy gift, either cash or something tangible (I got a Kindle Fire. I’ve given iPods.) to someone who hands you a big deal/client.
Saying thanks never goes out of style.
Doug, I am all for saying thanks to people who send me clients. I have a client now who has sent me 2 or 3 other small to medium sized jobs. While I haven’t sent him something tangible, there is one thing I haven’t sent him. That’s an invoice for a handful of hours that I would have billed any normal client. Have I gone out of my way to let him know that’s happened? Nope. I don’t think it’s necessary to step up and say “hey, I’m doing something nice for you.” He sends me clients, which is nice of him. I do some bonus work for him, which is what I feel is appropriate.
Oh, and no, you definitely weren’t who I was talking about.
I usually offer them when I think that it only has the potential to be a one-way relationship. If I refer work to others who do the same for me, I usually don’t.
I am with you on finders fees. I just went through the same thing a friend referred me to someone and he wanted a fee & I usually do not give them but I said I would give him something never agreed on an amount & when it came down to it he wanted 10%. I did not know what too say, I gave him somethin but not 10%. & We are not friends any longer which were we really friends at all is my question. I believe what comes around goes around.
I agree you should not have to pay a finders fee I send clients to other outfits and they return the favor.
we call it networking