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Sales charge %
I am freelancing for Google Ads, but some of my clients come from one of my buddies who has a SEO company. As he is only one person in his company he is busy enough with SEO and is not interested in PPC, so if any of his clients want to run PPC campaigns he instantly routs them to me. For every client he delivers to me he wants to charge 30% sales on whatever I earn from client. Now it has come to a point he is even offering PPC services and then sending these clients to me.
I think 30% is way too much but have little experience with this so I would love to hear some opinions from yall?
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4 Replies
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30% seems high for a commission, but he’s also sending you clients, which you would have had to go find on your own otherwise. You’re basically paying for leads on a commission basis, which is a crappy model, imo. So pick your poison – pay the commission, go find your own clients, or negotiate a better deal. Preferably a one-time fee. Make sure you have leverage.
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The most I’ll do is 10-15% of my comission fee on spend for the first 6 months. Nothing on setup costs. My partners deserve a cut for sending me the business, just like when I send them business I should get a cut, but it needs to be reasonable and there NEEDS to be an end to the term of the payout.
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It depends. Are you handling these clients under his agency name or as yourself, separate from his agency? 15-20% is normal commission for agency sales.
Either way you shouldn’t look at it like “I paid him $1500 in 3 months”. He added revenue to your pocket that you otherwise wouldn’t make. As long as you’re not getting paid peanuts or working with sub $1000/mo clients.
I’d get him to lower it, if not, just build referrals off these clients and it will pay off. Also look into a contract to limit how long he gets paid for. I’ve done that with sales people.
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Yep definitely, I usually ask for 10% on small projects and 20% on projects for 20.000 eu
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