| 09:23am Jun 23, 2000 PST (#1 of 8)
Somebody please help? What is the typical agency standard for a finders fee (getting new business)? We were thinking about giving $1,500 to $2,000.
Ed Miller
09:24am Jun 23, 2000 PST (#2 of 8)
We usually give our employees 10% of the gross profit for that account for the first year. I have had some great referrals that way.
As for an outsider, so much depends on the size of the business. What you are proposing seems reasonable.
Natalie Clark Gerngross Gerngross & Co.
09:24am Jun 23, 2000 PST (#3 of 8)
I think it depends on the size of the job received and the expectations of the "finder" and what your relationship is with the finder and how much you value the continued relationship with the finder.
Elizabeth Love Consumer Strategies Group
09:25am Jun 23, 2000 PST (#4 of 8)
We use a % of the gross profit. The amount depends on the New Business that is brought in. Generally, we give about 10% of the gross profit.
Kim Hogen Donahoe & Purohit
09:25am Jun 23, 2000 PST (#5 of 8)
My bosses have a firm and they said that $1,500-$2,000 is interesting but they also charged 3%-5% of the value of the client. Hope this helps.
Lorin Bannett i-on interactive
09:26am Jun 23, 2000 PST (#6 of 8)
I'm not sure if its standard, but we recently used $3,000.
Jonathan Gundlach Hanson Dodge
09:26am Jun 23, 2000 PST (#7 of 8)
We have always avoided a flat fee because you never know the business ahead. Instead we give a percentage (10%) of the gross profit of the job. We really only give a bonus on the first job. Our thought is that once we have the client in the house it is everybody's job to try to maintain them. Then if we can retain them and they add to our bottom line over the year they help pay for salary increases and year end bonuses. (Its worked so far).
David Nemetz Three Thirty Inc.
09:27am Jun 23, 2000 PST (#8 of 8)
That seems like a good idea. However, how do you determine what constitutes the referral? Do they have to do something more than mention the firm's services to a potential new client. If an introduction was made my an employee, or anyone else for that matter, but nothing more and you landed a big job with this new client, would that constitute a finder's fee?
Lucia Mumm Full Circle! Marketing, Design and Printing
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