[thelist] RE: Commission

[David Kutcher]

Rachel,

You stated it correctly that working with friends/family has its advantages
and disadvantages.

By definition, commission for/on a sale is a percentage based on the value
of the total signed contract.  So if he's looking for a commission, then
he's entirely wrong.  He never got a signed contract, and that's his fault
as the sales person.  He holds no claims on commission.

If he wanted a finder's fee, well, I can kind of see that since he brought
the client to your door.  As such, there is no going rate on finder's fees.
You are entitled to give him whatever you'd like.. including nothing.

The last company I worked with only gave commissions and finders fees if a
client signed a contract.  Commission was given to sales people, finder's
fees to people that introduced clients to the sales team.  Commissions
ranged from 5%-8%, and finders fees from $200- 3% of the contract (the
difference between the 5 and 8 % above).

And a year later?  You really dont owe him anything.

David
www.confluentforms.com