Finder's Fee

Q_Prime

my friend from work offered me a chance to make a website for someone, apparently i'll be getting about 1000 dollars for the work if she decides to go ahead with it, he asked for a finders fee this morning when he left me a message on msn. now i could really use the 1000 dollars, i owe about 900 on my visa. so this would clear it up. just now he comes online so i message him to talk about the site, and he asks for 20%!! i think this is a bit absurd for him just telling me about the website. i could really use the money regardless, but i don't think it's fair that he asks for 200 dollars for his involvement, i was going to offer him 5% which i thought was more then fair. what should i do? i don't want to lose this job because i could really use the money but i don't think i should have to pay him so much.

i don't know any details of the job, if it's relatively easy i am thinking of just giving him the money so i can come out with something.

Iceman.USAF

I'd compromise on $100, if it were me. $900 is still a mighty fine haul. Some finders fee is due, but not $200 damn dollars.

Feral

If somebody asked me for a finder's fee for referring me work, I'd tell him to go fuck himself. You're not selling a company or getting venture capital, you're doing work.

That said, typical finder's fees are 5%.

EggyToast

Yeah, finders fees are 5%, 10% at most. The majority of the work is done by the person doing the job. Say that you thank him for the ref but you're still going to be doing ALL of the coding, and that you'll give him 5%. And reinforce it by saying that $50 by just connecting two people is a pretty good haul.

I mean, he hooked you up with the client, so if he's adamant about it, just say "dude, I'm not giving you 20%. I'm happy to give you something for the hookup, but if it's 20% or 0%, well, I'm not giving you $200 for swapping email addresses."

But I would go no more than 5% if it's not even a sure thing. I mean, he doesn't even know if it's a done deal or not -- just that she might use your site. If I were you, I'd ask her for 50% now and 50% when it's done. Work isn't free, especially if she says she doesn't really like the site, refuses to pay you, and then uses it anyway after you delivered it.

Thanatos

What, exactly, did he do for you? Did he know the person, and refer them to you? Or did he just say "this dude is advertising that he needs a webmaster. You should go for it!"

Q_Prime

from what i understand he know's the person. now he said he can do the job himself, but i don't believe that. and he is a friend from work 10% i think is an awesome deal for him and i'd be more then happy with that arrangement because i'd have enough to pay off my visa. i could even pay off my visa with 800 but i cant help feeling ripped off at the 20% request.

supabeast

Unless your friend does this as a business service and asked for the money up front, he’s not entitled to a damned thing.

Feral

supabeast wrote: »

Unless your friend does this as a business service and asked for the money up front, he’s not entitled to a damned thing.

Yep.

Finders fees don't go to people who say "Hey I know a guy who might give you money for X." They also negotiate deals, help you find a lawyer to draft contracts (if they're not lawyers themselves), and/or basically act as brokers. In other words, they provide a service. Asking for a finder's fee for giving you a name and phone number is like asking for a web design fee for telling somebody, "Hey, you should totally use CSS instead of tables. That'll be $50, please."

Kyougu

If he's your friend, isn't he doing you a favor? When a friend's car break downs, I don't go pick him up, and drive him to work, and the turn around and charge him for the ride. Your friend just sounds like an ass to me.

Ashaman42

Of course if you give him nothing he may in the future not pass on stuff he hears about to you. Might be worth keeping him sweet but 20% is still way too much.

Q_Prime

problem solved, he wanted to do the graphics work, he just needed someone for the coding. so it's all good.