Question

Topic: Advertising/PR

Commission To Get A New Customer

Posted by Anonymous on 5/4/2015 at 4:36 PM ET 250 Points
Could you please tell me how much the commision should be for bringing a new customer to a pr agency?

The seller is a senior executive, responsible for an area in PR agency

Thank you in advance por your help!!
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RESPONSES

  • Posted by mgoodman on 5/4/2015 at 8:42 PM Moderator
    It should be whatever it takes to motivate the salesperson, as long as it doesn't exceed the net revenue from that client. Any less and you won't really have the salesperson's full attention. Any more and you won't make any money on that client.
  • Posted by Peter (henna gaijin) on 5/5/2015 at 2:32 PM Member
    Is the person getting the commission an employee, or are they outside and getting a finder's fee?

    If employee, then you should look at other PR agencies and find out what they pay. Compensation is always a mixture of salary and commission, so you have to look at both.

    Bit more complex if it is someone outside.
  • Posted on 5/5/2015 at 2:52 PM Author
    Thank you very much for the answer!!

    The person is a free lance.
    20 or 10 % of the total amount billed to the customer?

    What do you think?

    Thank you in advance!!
  • Posted by jstiles on 5/5/2015 at 3:47 PM Accepted
    I sometimes refer contacts to specialists in other disciplines, and they reciprocate. Often the reciprocity is enough, but for larger new clients wwe customarily pay a 10% finders or referral fee.

    There are many ways you can structure this and your situation may differ, but for what its worth this is what my circle has been doing for years.

    ~best of luck!
  • Posted on 5/6/2015 at 4:37 AM Author
    Thank you very much!!

    Your answer is very useful.
  • Posted by mgoodman on 5/6/2015 at 12:10 PM Accepted
    The common range is between 10% and 25% -- occasionally as high as 33%. It depends on whether you want to aggressively encourage future referrals, or whether the payment is more of a "thank you."

    Also consider whether the client is likely to be a long-term client, or if it's just a quick one-time-only project. Generally you would pay a greater [one-time] referral fee if you anticipated a long-term client relationship.
  • Posted on 5/13/2015 at 4:59 AM Author


    Thank you very much to all for your comments. You are helping us a lot.
    During our negotiations with the freelance another question has arisen: the free lance commission should be calculated on the turnover made by the client or on the net amount (the total amount less the payment of suppliers used for the project)

    Warmest regards!!
  • Posted by mgoodman on 5/13/2015 at 6:43 AM Accepted
    Calculate based on the total sale to the client. Your other expenses are not the responsibility of the referring freelancer.
  • Posted on 5/14/2015 at 4:41 AM Author
    Than you again all of you for your support.

    This is a great community.

    Warmest regards,
    MS.
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