thrwwwy123

Thank you!

Thank you very much for the detailed response, this is extremely helpful.

> But if he is literally just making an intro and then now saying you have to sub-contract from him that is odd to me and for me and has red flags all over the place.

This is indeed the case. But the work is interesting, and I believe my friend is just inexperienced. How do you suggest I proceed?

> Is his company big enough you can feel confident he'll pay you timely and properly?

As far as I know this is among his company's first engagements of this kind. I don't believe he is able to pay until the client pays him.

> If things go south, is his company large enough to compensate or protect you during a legal suit? Is he carrying all the proper insurance?

These are great questions, thanks. I will follow up with him regarding legal and insurance.

> For people I don't know or that are just acquittances, I'll do intros but I do take a referral fee paid as they are paid from the client.

I think this kind of arrangement would make more sense under the circumstances. What is the fee you normally take? Do you have any advice for how I can convince my friend that this is the better option for both of us?

> Don't compare to staffing agencies, that isn't an accurate representation unless that is the business your friend is in.

I believe that is the business he wants to be in. Can you please clarify why this isn't an accurate representation?

Thanks again, you've been very helpful already!

> To your next point, what you're describing about going direct to the client is not only likely a breach of contract, but also generally a dick move.

We haven't signed anything yet. I wouldn't go direct to the client immediately, but rather let him have his cut on the initial engagement. After that point, I feel like I would have more of a relationship with them than he does.

> Also, no, recruiters often don't charge a one-time fee anymore - they will often get an initial fee plus a percentage of the employee's salary if they stay for a full year.

Just to clarify: this isn't a full time engagement, but a short term hourly contract, with potential to extend to long term if things work out.

> If you want to get 100% of billable with no sales/subcontracting commission, find your own client.

This is what I'm struggling with. What does it mean to find a client? Is it the case that as soon as there is someone performing an introduction of any sort, they are entitled to an ongoing fee?

> That is a reasonable margin, but only when your friend is willing to earn it.

Can you please clarify what you mean by this? Are you saying that his 25% is reasonable as long as he takes on the risk of paying me, regardless of whether the client pays or not?

> Paying for value now will serve you later.

Can you please also clarify what you mean by this?

Regarding who the business relationship is between: I've never worked with the client before. But as far as I know, neither has he, beyond introducing me to them.

Thank you for the perspective, and for the suggestion regarding terms!

Regarding 25% being cheap, can you clarify what is standard in this type of situation?

Just to clarify, are you suggesting that I offer the client to bill them directly at a lower rate right off the bat?

My friend would not receive this well, since he would get nothing from the introduction, and he probably not refer me to something similar in the future.

Do you think my friend is being unreasonable?