Accounting & Bookkeeping & Small Business Forum

[Guest]

I was recently contacted by a financial consultant who runs his own business. He was interested in forming, I guess you would call it, an alliance between us. He said that basically if either one of us found work for the other there would be a finder's fee charged or a commission given based upon how much the client broght in to the other person. I was wondering if anyone else had an experience with this kind of setup and had any advice to give. I am a little worried about such a setup since I have just started my business and do have many clients yet.

[Guest]

Before you jump into anything like that make sure that this persons business integrity is in tact. You do not want to be associated with anyone that has less than professional practices. If this person is on the up and up then go for it. It can't hurt to have a small network going. I hope this helps.

[Guest]

Regardless of what it is called a finders fee, a commission, or a referral what he is proposing is ILLEGAL. He not only could lose his license and be fined, but he could take you down with him. My advice is avoid him like you would the plague.

[Guest]

RICHARD this is in essence selling a client from one business to another and this is NOT illegal. There are a lot of companies that charge a finders fee so if it were illegal a lot of business would be going down. He just chose to word it finders fee instead of telling him that he would sell him the contact for a small fee. Get a degree in law before giving people legal advice.