What percentage is the reasonable referral fee (or marketing fee)?

Replying to [jeddahprojects]:Depends on the type of service provided, difficulty level in obtaining the results and furthermore the percentage the competitors will offer for the deal you have in hand, total project value and such parameters. I might say a 2% and a fixed rate applied to deals less than USD 20000 or so ... you may arrange a reasonable fee in some respects ...

The best fee to charge is such that you are getting paid! or better say the clients served are ready to pay for..

Good luck!

Replying to [A1Erdem]:2%.that is a great one

Replying to [jeddahprojects]:business it's hard. soo, if buyers, trading company or brokers and sellers can be deal about fee. why not?

Replying to [jeddahprojects]:Horses for courses I suppose.

We charge out fees at a fixed rate, that are cheaper than Accountants/Solicitors and which are a lot less than suppliers trying to enter a new market or deal at long distance with a customer themselves.

We do this as we do not want to have to handle stock ourselves. Our fees are payable irrespective of outcomes, so we sacrifice "margin" for "cash-flow".

I think these days; unless you are a reseller, the old model of high commssion middle man is dying. I think reselling is too risky and you can end up having to mind loads of stock, which not only locks up money but also has an ongoing cost for storage, handling etc (not cheap in the UK).

I think you will see our business model catch on more and more over the next few years.

Replying to [A1Erdem]:

To all,

Thanks to your response. I appreciate everyone of you.

Good luck,

Quoting from [jeddahprojects]:



What percentage is the reasonable referral fee (or marketing fee)?

jeddahprojects, the information you see is not a marketing fee, it is the commision you are willing to pay a middleman weather broker or, agent for his service of providing you with buyers or sellers.  It also depends on the percieved marketability of the products involved.  The rate on electronics is about 2750 per 100K and most agents have a minimum fee, or may not deal with total dollar amounts less than 50K.  If you get into the garment and leather this fee usually runs 3500 per 100K as there is a greater profit margin available than with electronics.   The only way to declare this a true marketing fee is if this agent is dedicated to bringing you a constant flow of buyers or sellers and not from a one-off point of view.

If your dealing with scrap metal the only member I believe that deals in that on the boards that I know of is MioBoy.

Best regards,

Ranger

Replying to [jeddahprojects]:There is no hard and fast rule for referral fee.
I operate as Marketing consultant to a number of companies.Metal scrap companies think 0.5%, or half percent is big, because turnover is in millions of dollars.Automobile parts companies do not object to 10% of their cost as reasonable fees.
Sixer

Replying to [jeddahprojects]:If I were you, I would not take 2%. I work at the fixed rate or at least 10% again depending on the job.