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3rd Party ServiceMarketingPricing

Large Complex 3rd Party Job: Referral Fee or Make the Spread?8059

WGAN Forum
DanSmigrod private msg quote post Address this user
Hi All,

A WGAN Member - whom asked for a referral of a 3rd party service provider - asked me today (Friday, 19 October 2018) if s/he should:

1. Simply refer the business to the potential client
2. Quote the work and make the difference between what s/he charges his/her client and pays the 3rd party service

The backstory is that this WGAN Member has a trusted relationship to do Matterport 3D Tours, but is being asked to provide a large, complex service that s/he has not done before and does not have the expertise.

I answered the question by suggesting two options:

1. Ask the 3rd party service provider for 10 percent for one or two years of all business generated from the trusted introduction. (This way, s/he could step out of the role of account management and the business risk associated with the large project that s/he does not have expertise.)

2. Own the client relationship - that's golden. Ask the 3rd party service provider for a quote and mark it up by 20 to 40 percent based on the account management and business risk. This may spark additional business from the client that you would not have known about had you referred the business.

I consider either option viable depending the preference of the WGAN Member.

What would you have recommended (or do)?


Post 1 IP   flag post
Club Member
Portland, Oregon
HelloPado private msg quote post Address this user
I've enjoyed being the 3rd party a few times now and i feel like it's a win/win. The original MSP fosters the relationship that they created and I get a fairly simple "scan only" job.
Relationships are what we do as providers but i understand how it can be difficult to bring an unknown variable (3rd party) into a trusted relationship.
As long as it is fair to both parties, i can see either option working well.
Post 2 IP   flag post
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