> For this job, we charge a 10% referral fee if you are hired by the company.
> * 10% of revenue earned per month
> * Paid every month, capped at 6 months
> ** Note: this referral fee only applies to jobs where the referral fee is mentioned at the top of the job description. If the referral fee is not mentioned, it means there is no referral fee for that job.
> How It Works
> * We’ll calculate the expected monthly revenue from your contract
> * 10% of that revenue is the referral fee
> * We’ll charge you that referral fee for the first 6 months of the contract
> * You’ll pay the referral fee AFTER you’re paid by the client
Is this typical, or a direction you want to go?
My concerns:
1. The means of enforcing that could get messy. (What do people have to sign? What if the company decides to outright hire the person? What are the reporting requirements? What's the headache if breaking off the engagement?)
2. As a consultant, I'd not be thrilled to pay anyone 10% off the top of gross revenue. Unless it's a matchmaker that really added value that made all the difference. (Not just happened to be a middleperson in making the connection through their site, rather than any number of other places it could've happened. Traditionally, a deep-pocketed employer who can't be bothered to find people itself would pay the random sourcers/recruiters.)
neilv|1 year ago
https://docs.google.com/document/d/1qmx3RKPfDgqF9ivBJF6C3vwX...
> The Referral Fee Experiment
> For this job, we charge a 10% referral fee if you are hired by the company.
> * 10% of revenue earned per month
> * Paid every month, capped at 6 months
> ** Note: this referral fee only applies to jobs where the referral fee is mentioned at the top of the job description. If the referral fee is not mentioned, it means there is no referral fee for that job.
> How It Works
> * We’ll calculate the expected monthly revenue from your contract
> * 10% of that revenue is the referral fee
> * We’ll charge you that referral fee for the first 6 months of the contract
> * You’ll pay the referral fee AFTER you’re paid by the client
Is this typical, or a direction you want to go?
My concerns:
1. The means of enforcing that could get messy. (What do people have to sign? What if the company decides to outright hire the person? What are the reporting requirements? What's the headache if breaking off the engagement?)
2. As a consultant, I'd not be thrilled to pay anyone 10% off the top of gross revenue. Unless it's a matchmaker that really added value that made all the difference. (Not just happened to be a middleperson in making the connection through their site, rather than any number of other places it could've happened. Traditionally, a deep-pocketed employer who can't be bothered to find people itself would pay the random sourcers/recruiters.)
tbird24|1 year ago