Finder's Fee

Hello! Let me first give a huge THANK YOU to all those who have taken time to post and give info and advice to those of us just starting out. I appreciate the things you've written & topics discussed here It's helped tremendously!!  

My scenario is this- I'm an Esty renting a room from an established massage therapist, with an established business. She wants to charge me a Finder's Fee for all her clients that come to me. I am using all my own products and equipment. I'm an independent contractor and pay monthly rent. Any suggestions on what would be fair?? 

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Permalink Reply by Shelley Hancock on October 29, 2012 at 7:21am

I had renters years ago (massage therapists) and never ask for a finders fee. I was delighted to send clients their way because if they are successful, then they will continue to rent from me and I have that steady income coming in. If you do agree upon this with her, it really shouldn't be a huge sum. Do you get the feeling that she is really going to promote you to her clients? Some people talk a good one and when it comes right down to it, it never happens.

Here's another scenario....ask her to lower the rent and then you'll give her a nice percentage (the first appointment only) for each client she sends to you. This gives her incentive to send people your way! The more she sends, the more $$ she makes and perhaps her rent income from you will even be higher than her asking price. This may backfire on her if she doesn't step up to the plate sending you clients but then it works to your benefit.

Permalink Reply by Chris Paige on October 30, 2012 at 1:07pm

Thanks Shelley! I spoke with her and we agreed that I'll pay $25 more monthly in rent and neither of us will bother with referral fees nor would she ask me for more $$ for advertising & marketing. It was a bit of give and take on both out ends, but I'm satisfied w/ outcome :)

Permalink Reply by Claire Barnes on October 29, 2012 at 10:35am

Firstly...I agree completely with Shelley on this one, she made some good points and secondly "Thank you" for saying Thank you to those who help and give advice to others.  A lot of the time you give advice and the person just goes 'poof' with little gratitude shown for the time that people took to respond.  You are sweet for acknowledging people's time.  What comes around goes around and you will do great in this industry with such a caring attitude!

Permalink Reply by Chris Paige on October 30, 2012 at 1:11pm

Thanks for the response! Being a mom of adult children, I'm so familiar w/ 'little gratitude shown'. Lol! The forum here has really answered many questions and I am grateful!! Thanks for the compliment! Today I needed it!! 

Permalink Reply by NBSkinCare on October 29, 2012 at 2:42pm

I kind of think a finder's fee is ridiculous.

Are you gonna charge her for you referring your clients to her?!

Whatever happened to women encouraging and helping other women grow their business?!

I work with a massage therapist and I happily send clients her info when they inquire about a massage or mention needing some extra TLC.  and I know the massage therapist does the same for me. 

If you do come up with a finder's fee agreement, make sure the massage person understands that you plan to charge her as well!

Permalink Reply by NBSkinCare on October 29, 2012 at 2:43pm

sorry, I might be a little on the grumpy side, LOL.  Not directed at the original post, of course.  :)

Permalink Reply by Chris Paige on October 30, 2012 at 1:17pm

I felt that it was asking a bit much too... However, I could tell that she was very protective of the business she worked hard to build up and wasn't prepared to simply hand over her client's to me as I don't have a clientele built up yet. We talked about it and I explained that I'm adding to her business not taking away from it. She responded well and were moving forward... Now, I have to ask her why cleaning the bathroom has been added to my rental agreement...

Permalink Reply by Deborah Kenney on October 30, 2012 at 4:58pm

I was feeling happy that things worked out so well, then read the last line! I guess some people have to have the last "word".

Permalink Reply by J.L. on November 14, 2012 at 7:41pm

Hey Chris, I have a feeling more things are going to come from this massage therapist. I would, when you have free time....., look into other options for your space. Always have options, always know what else is out there. This way, when your "lease/agreement" is up, you have an escape route and more leverage  This woman seems shady to me... 

Permalink Reply by iskyn for me on November 15, 2012 at 6:12pm

.. hmm I would venture to say that her finder's fee is your rent !  Perhaps if business is steady and she is truly promoting you than you may wish to  offer her a product or a service provided by you.

Best Wishes :)

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