How to manage offline referral fees?

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Say you pass a client to someone who can help them with SEO, Social Media, or anything else you don't do in house. If you wanted to collect a flat $100 or 10% ongoing, how would you set this up? I think manual Paypal transactions would work for the fixed fees but am not sure about ongoing fees that cancel if/when the client stops with the referee
#fees #manage #offline #referral
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  • Profile picture of the author Claude Whitacre
    Originally Posted by Delta223 View Post

    Say you pass a client to someone who can help them with SEO, Social Media, or anything else you don't do in house. If you wanted to collect a flat $100 or 10% ongoing, how would you set this up? I think manual Paypal transactions would work for the fixed fees but am not sure about ongoing fees that cancel if/when the client stops with the referee

    You can set up monthly fees with Paypal, and the referee simply notifies you when the client stops paying,.
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  • Profile picture of the author animal44
    I would operate as the front end. i.e. collect the fees and pay the service providers. Having control of the money simplifies things for you.

    Bad idea to base any business on receiving payments via Paypal. They have a tendency to freeze your account for months for "unusual or suspicious activity". It can be a pain to sort out. Always have some clients on some other payment method and/or build up reserve funds. (good plan to have plenty of reserve funds anyway).
    Bank transfers are probably the most reliable. Even then, it would be prudent to have multiple accounts with different banks with clients paying to different accounts. Cross border transfers can get expensive, so need to ensure your fee covers the extra and/or get good at negotiating with your bank.
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  • Profile picture of the author acnescars
    Is this process is working properly? Because only two have replied to this thread. That is why i am asking.
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