| ||Ask HN: A friend introduced me to a client, now he wants a 25% cut|
26 points by thrwwwy123 28 days ago | hide | past | web | favorite | 39 comments |
|I work as an independent software consultant in a somewhat specialized area. A friend recently introduced me to the founders of a company that are looking for help in this area. It's interesting work and I want to pursue it. However, my friend is insisting that I bill his company at my rate of $X/hr, and he bill them at $1.25X/hr. The client appears to be fine with the rate he quoted them.|
I understand that business is all about relationships, and I want my friend to be compensated for the value that he's provided. However, this seems pretty steep to me, especially if it turns into a long term engagement. In my experience, recruiters usually charge a one time fee, but his reasoning is that he's more of a staffing agency than a recruiter.
While theoretically I should be content with earning my rate, this has also made me realize that I should be charging more.
One possibility I'm thinking about is that we engage under his terms for a short term initial contract, after which point I start billing the client directly, either at my current rate or at his. However, I'm not sure how this might be received by both the client and my friend, nor what the norms are in this type of situation.
What does HN think? What is the value that a staffing agency provides to justify their cut? Is my friend being reasonable?
| Apply to YC