Some distribution processes are long. How long does it count as a sale for the referent? In a month? Six months? How long should you consider this lead/sale to come from the reference part? Your accountant can advise you accordingly. But I recommend you structure the agreement (and your calculations) on the basis of revenue, not on contractual income. In other words, payments are based on when you receive the money. Don`t complicate things if possible. I recommend using a process related to your existing systems. You can create the referer z.B. as a “commercial” in your accounting software, so you can simply report on the recommendation fees due (“commissions”) instead of having to calculate everything manually. While working with a finder entails additional costs per customer if the price is correct, a finder fee contract can bring many new leads into your business.

In this example, 10% for a returned lead is twice as much as 5% that you can pay internally for an “organic” lead. But it`s comparable to the 10% you`d pay your seller for an outgoing lead – and the evicted lead is probably better qualified and easier to close than a pure exit. Search fees are a reward for a business contact that introduces new customers, investors or sales into the business. The Finder discovers the transaction and introduces it to other interested parties, and the Finder receives research fees for its efforts. It is assumed that both parties will never enter into a transaction without a finder and that the Finder will therefore be entitled to compensation. Low-quality leads: One of the most immediate risks of the whole agreement is what happens when sales departments are lower or under-qualified. If researchers are paid regardless of the outcome, they can explore their contacts in less depth before presenting them in your company. Have I ever compensated my own sellers on the basis of commissions? If so, is the reference party a substitute or does it simply send the lead to the seller? Is there a service/advice component of the sale? Is this a white-label type of market, where I am the service provider? From time to time, most companies face periods of slow or non-existent growth.

If this happens to you, why not try to include finder fees as part of your partner incentive program? Contracting a finder to increase turnover must be costed. If a company is too generous with its profits from new sources, it risks doing a lot more work or sending more products for much less money. Most companies would be well advised to consider recommendation incentive programs as a complement to their in-house sales/marketing services, not as drivers of new business managers, who are the principal or exclusive. Research costs are a reward and therefore an incentive to maintain business contacts and resources that pass on the needs of a company or organization to potential customers or partners. While contracts are not necessary in such agreements, the structuring and approval of the terms of research costs can be maintained by all parties on the extent of the compensation. This can be especially useful for contacts that constantly attract companies into the business.