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How To Make Money With Finder's Fees Agreements - Getting Paid for Work You Don't Do - YouTube
Channel: Philip VanDusen
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hey everybody welcome back let's talk
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about finders fees in particular how you
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can make money with finders fees I
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always say it's not really that hard
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working the work what's hard is getting
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the work if you can get work if you can
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generate projects you can always find
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somebody to work the work so if you
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generate work if you generate new
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clients new business for you or for
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other people you deserve to get paid so
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what are finders fees well simply find
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your speeds are when you get paid for
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sending other people work essentially
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it's a legal agreement to get paid a
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percentage of whatever they're billable
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fees are if you send them project work
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so for example I had a client who was a
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celebrity chef and she needed some PR
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work done my agency doesn't do PR but I
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know a lot of people who do so I made an
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arrangement with a PR consultant that if
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she was put on retainer to do work for
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my client that I would receive or
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percentage of her billable fees so she
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did the work but I get a percentage so
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when do you use a finder's fee generally
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you use them when you have developed a
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piece of business or project or have a
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client who needs something that you
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don't do you need to find someone who
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does it and because that external vendor
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that you're going to hook them up with
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is essentially getting work completely
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out of the blue they are paying you for
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the privilege of having work served up
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to them now if you do know the vendor
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that you're referring the work to pretty
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well you can do one of three things you
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can either refer the work to them for
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free which is good karma and you know
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that's that's the way partnerships work
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sometimes or good relationships between
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different types of service providers
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work you can just for them that work and
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not expect a finer speed but you could
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also have them do the work through you
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so essentially work under the banner of
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your agency or your creative
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professional business and act as a
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subcontractor and you will manage the
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project
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and bill the client and they will do the
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work through you or you can use a
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finder's fee and they will do the work
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independently interact with the client
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directly and just pay you a percentage
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of what their billable rates are so how
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do you set up a finder's fee agreement
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well you start with a conversation
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between you and the vendor that you want
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to give the work to you say look I have
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this piece of business it's work that I
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don't do I'd love to forward you this
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piece of business it's gonna be a great
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billable project for you you didn't have
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to go out and find it would you be
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willing to engage in a finder's fee
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agreement with me if they say yes that's
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fantastic then you go to the legal form
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process if they say no that's cool too
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you don't have to give them the business
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go out and find someone who is willing
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to engage in a finder's fee with you if
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they say yes what you have to do is you
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have to work with a lawyer or there are
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downloadable contracts free online that
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stipulate the terms of a finder's fee
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it generally names the parties involved
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so the client who the project is from
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the vendor who you're talking to and you
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who's going to get paid a percentage of
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those fees it lays out that terms of the
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agreement so the percentage that you're
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going to get paid generally this ranges
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anywhere from 10 to 20 percent it also
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lays out the time or the cadence how
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often you will be paid monthly quarterly
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yearly whatever that is and then also
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the duration of the length of the
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contract
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is this going to be in effect for six
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months 12 months a year all these things
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are negotiable between you and the
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vendor that you're giving that piece of
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work to now there's something else that
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you should be aware of too and that's
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called a non-compete agreement and these
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work very much in the same way but
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slightly differently
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generally here's an example you use a
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partner on a project that you're doing
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you need some your client needs some
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video editing so you bring in a
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subcontractor who's going to do that
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video editing for your client you hire
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them as a partner and then they work
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under the name of your agency they work
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under your agency banner but they get
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introduced to the client during that
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project and may have interactions
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directly with that client a non-compete
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Bremen is a contract that says
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essentially I'm going to give you
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exposure to my client and you're gonna
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work this project with me but you can't
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then go around me and work with a client
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directly and get paid directly you're
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going to work through my agency but the
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work has to go through you and your
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agency so you can make some money you
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end up marking up their work of that
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partner of yours and including it in the
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project that you're doing for your
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client there usually is a duration set
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out for this contract can be six months
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twelve months 24 months after that
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period of time when the contract lapses
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your subcontractor is allowed to work
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with that client directly or that client
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can go to your subcontractor directly
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and they can work without you being
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involved but a non-compete agreement
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will set out a period of time where your
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subcontractor can't work with your
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client directly and essentially cutting
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you out of that process the pros of
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finder's fee agreements are pretty
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significant both for you and for the
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company or vendor that you find to be
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able to do the work it basically comes
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down in the fact if you can find some
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work you get paid whether you can do
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that work or not it's mutually
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beneficial the vendor that you're
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forwarding the work to is going to get
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more work they're going to be happy
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they're just gonna have to pay you a
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percentage what they make and generally
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they're happy to do it now there are
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some cons to finder's fee agreements
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they take a level of trust in the vendor
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that you're forwarding the work to
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because you're not going to have direct
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visibility to the work they are doing
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for that client or what ultimately
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they're billable rates have been so you
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have to have a level of trust that they
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are going to return the payment to you
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which is the percentage that you are due
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as a finder's fee for the work that
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they're doing from that client it's kind
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of sometimes notoriously hard to track
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and you may have to chase down payment
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you may have to get back in touch with
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that vendor and say hey did you ever do
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work for that client afore and if so
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what were the billable rates and can you
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forward me find finder's fee for example
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when I had that celebrity chef and I put
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her in touch with a PR person they
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good news is that I had a very good
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relationship with my client the
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celebrity chef so I was able to ask her
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hey did you ever engage with that PR
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person and if so how you know how long
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have you been working with her and you
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know how much was she charging you you
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may not have the freedom with the client
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to get that kind of information you may
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have to rely on the vendor to have them
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tell you and report back about the work
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that they've done for that client that
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you forwarded them so that's the
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downside of finder's fee agreements now
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keep in mind that no one has to engage
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in finder's fee agreements if it's
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uncomfortable for you then you don't
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have to do it but for the most part
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people are more than willing to do it
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because they're happy to get work
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totally out of the blue and they're more
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than happy to pay your percentage of
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that work because they didn't have to do
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the work in getting it and a lot of
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times they are then sending setting up a
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long term relationship with that
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external client and you're only going to
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be getting a paid a percentage for a
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period of time not the entire engagement
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it's a mature and it's an upstanding way
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of doing business and it protects you
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legally it also sets clear expectations
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around your relationships with whatever
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business partners that you're forwarding
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work to and it limits conflicts and
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resentments when it comes to sharing
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work and sharing clients between
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companies and agencies and it protects
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you and it protects your business
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relationships so that's it I hope you
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enjoyed this video on how you can make
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money with finders fees and if you did
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please hit subscribe below so you can
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alerted when I post something new or
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when I go live and visit me at Phillip
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Van Dusen dot-com if you need help with
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your brand strategy or brand design or
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your professional creative career make
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sure to reach out to me and let's see
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what we can do to take you to the next
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level and with that thanks again for
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watching bye for now
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you
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