Referal fees

[makscorp]

Hi Guys, Im new here.

Wonder if anyone can help.

As I am a contractor, i am in the frtunate position of knowing somebody who is looking to leave there permanent post and becoming a contractor. My agency are very eager to snap this person up, even though they dont know them. I have just shown them there skill set.

I have asked for a introducer fee/referral fee, which they are considering.

I feel these agencies make £'s an hour out of us, so if we contractors can make some money back from them, then why not!!

I do have the option of going to the client direct, but i thought rather than getting into that mess, if the agency pay me a good amount, i can split it with this person i know who is looking to become a contractor.

Anyone done this before?

[Lucifer Box]

The agency will desperately find some way to cheat you. Agree an amount in writing for yourself, signed by a senior representative of the agency on headed paper, blah, blah, blah.. Obviously it will be on successful completion of 'x' weeks or whatever. If you want to split it with your contact (assuming you get it) that's up to you.

Make it quite clear though, no signed agreement, no contact info.

[Flubster]

I'm getting constantly hounded my agencies offering anything upto £300 worth of vouchers for either positions I'm aware off or contractors not currently on their books that they can try and place.

[Sockpuppet]

I feel these agencies make £'s an hour out of us, so if we contractors can make some money back from them, then why not!!

Hmm... maybe its just logistics but all the agencies that I work for offer me money if I dont want to position and can refer someone to it. Anywhere from £100 (laughable) to £500 (more reasonable) for passing it onto the right person.

[Lucifer Box]

I'm getting constantly hounded my agencies offering anything upto £300 worth of vouchers for either positions I'm aware off or contractors not currently on their books that they can try and place.

Vouchers? Feck orf! Cash or nowt.

Vouchers for what anyway? Woolworths? Farepak?

[Lucifer Box]

Hmm... maybe its just logistics but all the agencies that I work for offer me money if I dont want to position and can refer someone to it. Anywhere from £100 (laughable) to £500 (more reasonable) for passing it onto the right person.

Do they pay? Many agencies offer but, unsurprisingly, rather fewer pay.

[Flubster]

I've got £800 worth of M&S, Virgin and Next vouchers all ready to be sent to family and friends for Xmas. All sent within the last 4 months.

[makscorp]

Thankyou for your replies so far.

I will see what they offer first. I think £500+ is more reasonable, considering the amount of money they make from contracotrs.

I also like the idea of, no signed agreement, no contract info.

Any other experiences, or advice welcome and appreciated.

[Ruprect]

I've got £800 worth of M&S, Virgin and Next vouchers all ready to be sent to family and friends for Xmas. All sent within the last 4 months.

All declared in the company's annual reports of course...

[ratewhore]

I did this a few years back. The agency offered my a hundred quids worth of vouchers and refused a referral fee or split margin (apparently their margins were so low they couldn't split them - yeah right!!).

Anyway, I ended up running a couple of guys for 2 years through my limited in the end and I made a lot of money by doing it this way, much more than I would have done if I had accepted a referral fee. They went with a brolly and I invoiced the agent for all of us (on separate invoices though. Their systems couldn't cope with multiple contractors on one invoice! ).

IR35 helpful? Possibly, possibly not. But, I would recommend running your mate through your company just for the dosh you will make...