referral/finders fee vs ongoing success fee

Discussion in 'Growing and Managing a Business' started by colione98, Jan 4, 2012.

  1. colione98

    colione98
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    Hey guys

    My father's company is involved in a multitude of projects such as construction/rebuilding in haiti, procurement, and oil drilling. I have a business of my own dealing with sports apparel, gear, sports nutrition, and footwear. My father has a few of my uncles of mine working for him but they are not entrepreneurs so they basically seek sources, push paper and complete quote requests and orders for clients. They are paid salary. He does not partner up just for the sake of partnering.

    My father wants to go into the shoe exporting business with me because of my knowledge, exclusive contacts, and how he sees I run my own business. Keep in mind that I have never been in business as a partner or otherwise with my father nor have processed a business deal together with him.

    My idea is to introduce my father to one of my many contacts- this one in particular because of his pricing, inventory, familiarity with caribbean regulations and he is my ONLY option. However, my contact deals with electronics, construction equipment, temporary housing unites for haiti, generators, solor panels, etc... All these sources that can and will interest my father.

    Here is the thing- he may want to sideline the shoes which I suspect he will want to at first because there are opportunities to make money by moving smaller electronic products, generators and or construction equipment that will be readily useful to the clients in haiti and the caribbean. Unfortunately I have no knowledge in construction equipment or generators to offer. Also, I am not a partner.

    However, even though I know I have to speak to my father at some time and have to establish my role, I don't want to be like my uncles and just collect a paycheck for completing the required documents in areas that I don't know of. I want to be able to receive compensation for the future deals that don't even have to do with footwear. Why? Because projects will be ongoing and in need of the multitude of sources and products mentioned above due to projects given to my father's company from the U.N. and the shoes may go to the waistline.

    Side note: We will not be carrying inventory- we will be playing the middle man for interested clients so no upfront or out of pocket purchases will be made. Nor will i, myself have to fork out funds.

    So far, I know there is such a thing as finder's fee, success fee, and commission. But considering my contact offers more than just one product, is there such a standard for "ongoing success fees or future deal fees"? Should i ask for a partnership and if so, what kind? But like I said, considering I don't really know about construction, I probably will not contribute much.....

    Is it reasonable to ask for future deal fees? And how do I approach him so I have some sense of how to navigate the conversation? I don't think it would be good discuss % points for future deals this with my contact (im not trying backdoor my father).

    Your thoughts..

    Thanks in advance....
     
  2. colione98

    colione98
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    anyone?
     

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