Monetising introductions and other non tangible services.

[madame SasGuru]

Uh tulip. I feel so naive. It is sales, I just thought of it as "introducing". I have been doing this for over a decade, if anything it stoked my ego that people would actually take my calls.

The thing is I do have the contacts.

Hmm, as I have a very good relationship with the guy who paid me 50k, I shall ask him how much he would have paid. I am guessing a lot more.

Every circumstance is unique. given what you described it wouldn't surprise me if more than the first year revenue from that customer was an option based on their need to have a quality customer paying money.

Looking at the things I'm working on (a specialized change to the internals of some commercial software to resolve a gap that impacts suitability in some market sectors) my pricing / sales related notes state:-

1) Price base on the value for the customer not cost plus anything and ignore the monthly fee from the supplier for the core product.
2) No discounts beyond volume and annual payment (this rules out a particular cheapstake customer who needs it but tough for them).
3) 10% commission to partners but they will need to be trained up - that means longer term a course with exam.
3b) short term that means they need to sell consultancy from us as well to ensure things are handled correctly - that means sell consultancy and recruit possible consultants.
4) ensure you keep your existing excellent relationship with the original software producer

If you don't already you really do need to read Patrick McKenzie https://twitter.com/patio11

[clearedforlanding]

Well I asked the question. Was told that they would have paid €80k possibly more. The advice given was to aim for 10% of the 1Y value of an introduction & settle at 7.5%, which makes my margin less than most pimps, but hey, the customer came to me and no admin - so little effort. Still no idea on how to figure out a 1Y valuation though.

The other good thing is that I pitched my car event package at the semiconductor company and have woken up to an email confirming 15 people for a long weekend, so stand to make more money off the introduction than the 50k fee. Also my first major client so am happy.

[northernladyuk]

Well I asked the question. Was told that they would have paid €80k possibly more. The advice given was to aim for 10% of the 1Y value of an introduction & settle at 7.5%, which makes my margin less than most pimps, but hey, the customer came to me and no admin - so little effort. Still no idea on how to figure out a 1Y valuation though.

The other good thing is that I pitched my car event package at the semiconductor company and have woken up to an email confirming 15 people for a long weekend, so stand to make more money off the introduction than the 50k fee. Also my first major client so am happy.

That's a nice roll you are on.