Question

Topic: Career/Training

Rules Of Introduction Fees And Contracts

Posted by Anonymous on 8/29/2009 at 11:50 AM ET 125 Points
I am working into introducing a wine company from Australia to a company in Dubai which is wishing to hav e a letter from the owner naming them the exclusive distributers of their wine in the UAE. They have already found importers interested and will also do the legal work into bringing the wine into the country.

I am also bringing different new business into this Dubai company which he is interested to and important partners.

We are working on a contract in wish I would prefer to have specified the percentages I ll earn for each deal or each container sold, however, I am struggling to find out the reasonable amount to ask them. Or rather would be safer for me just to stabilish an Introduction fee.

I will also have to ask my contact, the wine owner for a contract for the amounts sold through my introduction. Also how could I put it on the paper and define the percentage.

What is the general rule for this type of business.

Thanks
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RESPONSES

  • Posted by matthewmnex on 8/31/2009 at 9:26 PM Accepted
    It all depends upon the work you are doing and the real value that you bring to the business.

    Are you looking for a commission? or an introduction fee?

    Are you going to work as a broker or intermediary? Meaning, will you be the primary point of contact with the buey in the middle east to secure orders every month and then manage the fulfillment of he orders from the supplier? THis means you are a broker and you can ask for a small commission on each sale.

    However, more likely, the buyer will just order directly from the seller each month once the relationship has been established.

    In this case, you don' do any work so you don't deserve a commission. You can ask for an introduction fee from the seller and if he feels that the introduction was valuable to him and if he is feeling generous, then maybe he will give you a nice thank you fee.

    Don't expect too much however, fees are paid for work - if all you did was make a phone call and send an email, then you didn't do too much work :)

    In the end it all comes down to WHO actually MAKES THE SALE.

    If you were the one who presented the products, negotiated the prices and closed the deal, then you made the sale an deserve the commission.

    If you just made the introduction, and the seller had to MAKE THE SALE himself, then, your introduction is only worth a small thank you fee.

    Good luck with it and remember to always keep it in perspective, nothing is for free :))

    Matthew
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