Hey guys,
Need some honest opinions on this.
I run IT company in India. A friend of mine referred us to one of the company, and we ended up closing the project. Now that client is also giving us recurring work.
The friend is asking for a straight 20% cut on the invoice value - not just for the first project, but also on all future/recurring work from that client.
I do understand that he brought the opportunity, so I’m happy to compensate him 20% for the first project. But 20% on everything else feels a bit too high from my side, especially since we handle all the work, communication, and also pay taxes on the full invoice amount here in India.
He mentioned that 20% referral is common practice in his country.
So just wanted to ask:
- What’s a fair referral structure in this case?
- Do people usually give commission on recurring work as well?
- How do you guys typically structure these deals?
Would really appreciate some real-world insights 🙏