Finders fees

[Gordon Brown]

I wondered how other people handled these and how much they paid.


I have worked in a little informal network whereby if I am approached to do some work or see a tender for work that doesn't quite fit my skills base or I am to busy to follow up, I refer it on to others and they have done the same for me. Sometimes I work in one organisation, see a gap that I can't fill and introduce them to someone who can. No payments involved, just a friendly and mutually supportive network.

Of late, one of the people who refers work has started asking for a 'finders fee' if we get the work and I was recently offered a finders fee by one company I have worked with if I could get them a meeting with one of my clientsthat led to business for them.

So, when is a finders fee appropriate, how much might one xpect to asks for ( set fee or % of gross or net?). What should you have to do for the fee (just pass the work on, attend a meeting etc?) and what are the ethics and responsibilitioes if the person you introduce turns out to do a rubbish job?

Do you tell the client and does accepting a fee mean you have some liability?