What is the going rate for a business introduction fee?

[MPwannadecentincome]

Hi, I would be interested to know how much I should reasonably expect to get as an introduction fee for giving a sales lead to a company supplying software services.

Assuming that a contract is signed, what might a smallish software company be prepared to pay to land a big name client? The contract value is not huge, maybe a few tens of thousands of pounds or so.

I remember in my permie days our company used to give non sales staff 1% of the contract value for any leads, on top of any commission paid to the 'real' salesmen.

[Ardesco]

A free beer down the local.

[BrowneIssue]

This is a common one on LinkedIn's Q&A.

Across the herring pond, 10% or 15% is not uncommon. Over here a beer is considered de rigueur.

However, the answer is frequently appended with either "... but don't start copying our practice here in America, it stifles business" or "... but please let's not go down the way they do it in America where every favour from a friend has to be regularly paid off in cash."

[jmo21]

a friend of mine recently bought someone a new set of double glazing for his flat for introducing him to a new client.

Demand nothing less than new windows!!

[t0bytoo]

I passed on a client to someone recently for 10% of their invoices for the next 12 months.

[MPwannadecentincome]

I'm not talking about a favour for a friend - this is a business transaction with a company I have a professional relationship with as I'm investing my own time here helping facilitate the sale!

I will go and read the linkedin Q&A's.

[pleomax]

Hi, I would be interested to know how much I should reasonably expect to get as an introduction fee for giving a sales lead to a company supplying software services.

Assuming that a contract is signed, what might a smallish software company be prepared to pay to land a big name client? The contract value is not huge, maybe a few tens of thousands of pounds or so.

I remember in my permie days our company used to give non sales staff 1% of the contract value for any leads, on top of any commission paid to the 'real' salesmen.

I would expect "Nothing" unless you have a signed contract with the software house detailling "Commission Rates" for introductions or sales.

I kmnow if someone managed to sell services or products that my company supplies then they would get a pen or mouse mat, and more fool them for not agreeing rates before they go an sing MyCo's praises.

It is a dog eat dog world out there and margins are margins.

Maybe if you managed to sell it again then would be looking to offer your an introduction fee, but not on a one off.

Pleomax

P.S I thought the line in here was you are running your own business and nobody does anything for free, and get it in a contract before you lift a finger?

[MPwannadecentincome]

I would expect "Nothing" unless you have a signed contract with the software house detailling "Commission Rates" for introductions or sales.

I kmnow if someone managed to sell services or products that my company supplies then they would get a pen or mouse mat, and more fool them for not agreeing rates before they go an sing MyCo's praises.

It is a dog eat dog world out there and margins are margins.

Maybe if you managed to sell it again then would be looking to offer your an introduction fee, but not on a one off.

Pleomax

P.S I thought the line in here was you are running your own business and nobody does anything for free, and get it in a contract before you lift a finger?

It hasn't progressed far enough to actually name names yet so technically the introduction has not been made!

[Turion]

It hasn't progressed far enough to actually name names yet so technically the introduction has not been made!

Then you need to raise a contraxt to state if the Co X makes Y money from Co Z that you get a % of the total, as you were the introducer.

Question is - will Co X sign? probably not, so better settle for that beer and curry. Also the favour will last a lifetime.

Only a poor fool calculates everything in money terms. Good luck

[MPwannadecentincome]

Then you need to raise a contraxt to state if the Co X makes Y money from Co Z that you get a % of the total, as you were the introducer.

Question is - will Co X sign? probably not, so better settle for that beer and curry. Also the favour will last a lifetime.

Only a poor fool calculates everything in money terms. Good luck

Actually Co X will sign - as I said I am not dealing with friends here. Before presenting said contract I need to negotiate the rate and a the moment Co X has the upper hand as they are used to dealing with this type of contract and introductions more than I am so will know the 'going rate' better than me!