

Ask HN: Sales guy compensation - badsamaritan

I have a small SASS business.<p>My friend called me the other day and said that he found a client for me. It is a 30 people company, so I&#x27;m going to make about $300 &#x2F; month, which is more than I have from all the other clients (I only got started, okay?)<p>The thing is that he wants a 20% cut from the profits. And I don&#x27;t have to worry about a thing — he will negotiate and he will handle the documents and all that.<p>But still, I think that 20% is too much. I&#x27;m wondering though, how to determine what is the right amount? Is there any best practices on how you come up with such number?<p>I mean, he is a good guy and I think he could find some more clients like this, he&#x27;s capable. Plus he&#x27;s a friend, I want to keep the trust between us.
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bobfirestone
Think about this in absolute terms. On this deal you are stressing and risking
a potentially profitable relationship for what $30/mo. Not only should you pay
him the 20% he wants you should probably offer him 50% of the 1st month on
each deal he brings in as a bonus.

