I agree with Anthony, a finder's fee or percentage of the invoice would likely scare people away. An alternative to that would be to get your client to assign the task to your company, and you can then subcontract it out to whatever GIS firm you would like. You then would get invoiced by the subcontractor for services rendered, you then pass on your invoiced cost plus your reasonable markup to your client.
Dan
-----Original Message----- From: gislist-bounces@lists.geocomm.com [mailto:gislist-bounces@lists.geocomm.com] On Behalf Of Anthony Quartararo Sent: Thursday, April 27, 2006 9:23 AM To: 'Krishan Sharma': 'Steve' Cc: gislist@lists.thinkburst.com Subject: Re: [gislist] GIS Consulting Fees
If someone ever came to me and said " I want a finder's fee and a percentage of every invoice you send the client for the term of the contract" I would tell them to go "pound sand" and never do business with that person again. You get one or the other, and it is up to you to assess what is better for you in the long term. Remember, there is a principle in the real-estate market, that says "the value of a property is what someone is willing to pay for it", so you can look at this problem and ask for a healthy finder's fee, or a generous percentage for the term of the contract, you risk leaving money on the table, or looking too greedy. That's called "consulting" and its not always black and white, but, one specific word of advice - if you hand off to another firm because most of the work is really not in your area of expertise, go for the finder's fee and make sure they remember you for future work: but, if the project is in your area of expertise, but just too big for you to handle alone, ask for a part in the project, a major part, and if that is not available for whatever reasons, get a nice percentage but have it based on total contract value AND all future related work, and make sure you get paid monthly or quarterly, and get guaranteed access to the accounting/contract invoices to ensure transparency. Cheers.
Best Regards, Anthony Quartararo Spatial NetWorks, Inc.
-----Original Message----- From: gislist-bounces@lists.geocomm.com [mailto:gislist-bounces@lists.geocomm.com] On Behalf Of Krishan Sharma Sent: Wednesday, April 26, 2006 1:02 AM To: Steve Cc: gislist@lists.thinkburst.com Subject: Re: [gislist] GIS Consulting Fees
On 4/25/06, Steve <steve95060@yahoo.com> wrote: > > Hello, > Here is a question for GIS Consultants- what is the going rate or > percentage fee when it comes to a "finders fee"- I have a large client
> who has a need- I find a large company that can build a custom > application to fulfill my clients need. I have the large company sign
> an NDA, and put want to put my client in contact with the large > company- Do I ask for a set fee from the large company if they do > business with my client, or set up a percentage fee for the project? > > Thanks, > Steve Laine > Laine-Consulting > > > --------------------------------- > Yahoo! Mail goes everywhere you do. Get it on your phone. > _______________________________________________ > gislist mailing list > gislist@lists.geocomm.com > http://lists.geocomm.com/mailman/listinfo/gislist > > _________________________________ > This list is brought to you by > The GeoCommunity > http://www.geocomm.com/ >
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Hi, Steve,
Yes you must ask for both, first finders fee and the percentage on the net invoice billing not on profit, I'm going through this exercises everyday. call me any time.
Thanks & regards, ********************* With best wishes, Krishan Sharma, Ph.D. (USA) www.gisextechnologies.com Mobile: 987-029-4791
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