Introduction fees for business opportunites (nothing to do with agencies)

[Wanderer]

I'm looking at a contract where I could be introducing some technology which I think the client will really like.

If they do take this on then there is a good opportunity for a third party to provide a juicy amount of fairly high margin consultancy work related to it. Now, my own consulting company could potentially take this on but at the minute I just don't have the resources to cover it. I definitely don't want my client to think that some commission/referral/kickback fee from a consultancy firm is the prime motivation for introducing them to this technology (it's definitely not) but the business man in me doesn't want to just gift this piece of consultancy work to a third party company on a plate either.

So, I'm wondering if there is a way that I can take a referral fee or commission on this.

Some options:

• Proverbial brown paper envelope down an alley. I know it does happen but it absolutely won't happen in my case for legal and ethical reasons.
• Gift this work to a consultancy on the understanding that they "owe me one" and they will return the favour some day but with no written agreement or contractual obligation.
• Arrange a formal commission type agreement whereby I get a margin on any consultancy work they supply to my client. Would this grate with the client and/or consultancy or it that fair business dealing?

Any thoughts?

[Support Monkey]

I'm looking at a contract where I could be introducing some technology which I think the client will really like.

Some options:

• Proverbial brown paper envelope down an alley. I know it does happen but it absolutely won't happen in my case for legal and ethical reasons.
• Gift this work to a consultancy on the understanding that they "owe me one" and they will return the favour some day but with no written agreement or contractual obligation.
• Arrange a formal commission type agreement whereby I get a margin on any consultancy work they supply to my client. Would this grate with the and/or consultancy or it that fair business dealing?

Any thoughts?

Number 3 your a business doing business with another business this happens all the time, don't even think about option 1 or 2, especially 2 the "owe me one" will be quickly forgotten

[kingcook]

Some options:

• Proverbial brown paper envelope down an alley. I know it does happen but it absolutely won't happen in my case for legal and ethical reasons.
• Gift this work to a consultancy on the understanding that they "owe me one" and they will return the favour some day but with no written agreement or contractual obligation.
  
• Arrange a formal commission type agreement whereby I get a margin on any consultancy work they supply to my client. Would this grate with the client and/or consultancy or it that fair business dealing?

Any thoughts?

^ This ^

You run a business. One of it's primary purposes is to make money. If you're worried that the client may find out about this deal then add something into the contract between your limited company and the 3rd party forbidding any discussions about contractual terms.

And if the client do find out about this anyway, you haven't done anything wrong.

[d000hg]

#4 cut the client PM in on it

[eek]

#4 cut the client PM in on it

That opens you up to the bribery act 2010 so don't do that

[d000hg]

That opens you up to the bribery act 2010 so don't do that

Make sure to give eek a cut to keep him(?) quiet.

[BlueSharp]

Pitch to the client what you want to do and why they should pay you the consultancy work. Best outcome would be to get the client to pay you for the third parties work and then add your margin to the third party fees.