referrals

Allan Adler · Guest

These are hypothetical questions.

Suppose someone X discusses with Y some work Y is not interested in doing
and Y knows someone else Z who does that kind of work. Is it reasonable
for Y to ask X for a fee for the referral, and as a condition for making it?
If so, does Y incur any liability for making the referral if Z doesn't work
for or with Y?

Another scenario is that in which Y knows a number of consultants Z1,Z2,...,Zn
and finds out from them what kind of work they do and works out an arrangement
with each of them that they will pay Y a commission for every referral Y
sends them. One day X talks to Y and Y says Z7 does that kind of work and
tells X that there is no fee for the referral because Y gets a commission
for every customer he sends to his contacts. Does Y incur any liability
for the referrals? And should the commissions be based on the size of the
contracts or on a flat rate per referral?

Next, suppose that Y decides he doesn't ever want to do any work and is
content simply making referrals. Is it correct to describe Y as a consultant
as long as he does it independently?

Another scenario is the following: Y doesn't actually know anyone but
is asked by X to look into the question of finding someone to do a certain
kind of work. Y goes out and finds out who does that kind of work, checks
out their business histories, interviews the better prospects to determine
whether he thinks they are suitable, and then makes recommendations to X.
Does Y incur any liability for the referrals and what kind of rates are
reasonable to charge for such a service?
--
Ignorantly,
Allan Adler <ara@zurich.csail.mit.edu>
* Disclaimer: I am a guest and *not* a member of the MIT CSAIL. My actions and
* comments do not reflect in any way on MIT. Also, I am nowhere near Boston.

George King · Guest

"Allan Adler" <ara@nestle.csail.mit.edu> wrote in message
news:116pqlhe4i6e0b7@news.supernews.com...
Quote:

These are hypothetical questions.

Suppose someone X discusses with Y some work Y is not interested in doing
and Y knows someone else Z who does that kind of work. Is it reasonable
for Y to ask X for a fee for the referral, and as a condition for making
it?
If so, does Y incur any liability for making the referral if Z doesn't
work
for or with Y?

Another scenario is that in which Y knows a number of consultants
Z1,Z2,...,Zn
and finds out from them what kind of work they do and works out an
arrangement
with each of them that they will pay Y a commission for every referral Y
sends them. One day X talks to Y and Y says Z7 does that kind of work and
tells X that there is no fee for the referral because Y gets a commission
for every customer he sends to his contacts. Does Y incur any liability
for the referrals? And should the commissions be based on the size of the
contracts or on a flat rate per referral?

Next, suppose that Y decides he doesn't ever want to do any work and is
content simply making referrals. Is it correct to describe Y as a
consultant
as long as he does it independently?

Another scenario is the following: Y doesn't actually know anyone but
is asked by X to look into the question of finding someone to do a certain
kind of work. Y goes out and finds out who does that kind of work, checks
out their business histories, interviews the better prospects to determine
whether he thinks they are suitable, and then makes recommendations to X.
Does Y incur any liability for the referrals and what kind of rates are
reasonable to charge for such a service?
--
Ignorantly,
Allan Adler <ara@zurich.csail.mit.edu
* Disclaimer: I am a guest and *not* a member of the MIT CSAIL. My actions
and
* comments do not reflect in any way on MIT. Also, I am nowhere near
Boston.

Scenario 1 - a: sure, b: see a lawyer
Scenario 2 - a: see a lawyer, b: whatever you can work out with the Zs
Scenario 3 - a: if you don't mind being called a consultant
Scenario 4 - a: see a lawyer, b: whatever you can work out with X

It's no joke about seeing a lawyer - the relationships you describe could,
under
some jurisdictions, be regarded as creating an agency. Agency imposes both
duties and liabilities for the contracting parties - and you have two
contracts:
one with the seeker and a second one with the provider. A lawyer will help
you
limit your liability in each case.

George King
G.E. King Marketing

Jon Morris · Guest

If you take a fee for the referral and it doesn't work out, it might damage
your relationship with the person to whom you referred the person too.

I miss out on a little bit of income when referring people because I make it
down that there "isn't anything in it for me" upfront. I find this makes a
referral more genuine.

I was in a national networking group and people were referring me to others
and vice versa all the time (mostly for fees) and after a few bad referals
in the group, peoples reputations were spinning down the drain...

So unless the amount of money you could earn as some sort of commish, don't
bet your name on it.

My 2 cents :)

Jonathan L Morris
jonathanlmorris@yahoo.com

"George King" <news@geking.com> wrote in message
news:116pugns40o959f@news.supernews.com...
Quote:
"Allan Adler" <ara@nestle.csail.mit.edu> wrote in message
news:116pqlhe4i6e0b7@news.supernews.com...

These are hypothetical questions.

Suppose someone X discusses with Y some work Y is not interested in doing
and Y knows someone else Z who does that kind of work. Is it reasonable
for Y to ask X for a fee for the referral, and as a condition for making
it?
If so, does Y incur any liability for making the referral if Z doesn't
work
for or with Y?

Another scenario is that in which Y knows a number of consultants
Z1,Z2,...,Zn
and finds out from them what kind of work they do and works out an
arrangement
with each of them that they will pay Y a commission for every referral Y
sends them. One day X talks to Y and Y says Z7 does that kind of work and
tells X that there is no fee for the referral because Y gets a commission
for every customer he sends to his contacts. Does Y incur any liability
for the referrals? And should the commissions be based on the size of the
contracts or on a flat rate per referral?

Next, suppose that Y decides he doesn't ever want to do any work and is
content simply making referrals. Is it correct to describe Y as a
consultant
as long as he does it independently?

Another scenario is the following: Y doesn't actually know anyone but
is asked by X to look into the question of finding someone to do a
certain
kind of work. Y goes out and finds out who does that kind of work, checks
out their business histories, interviews the better prospects to
determine
whether he thinks they are suitable, and then makes recommendations to X.
Does Y incur any liability for the referrals and what kind of rates are
reasonable to charge for such a service?
--
Ignorantly,
Allan Adler <ara@zurich.csail.mit.edu
* Disclaimer: I am a guest and *not* a member of the MIT CSAIL. My
actions
and
* comments do not reflect in any way on MIT. Also, I am nowhere near
Boston.

Scenario 1 - a: sure, b: see a lawyer
Scenario 2 - a: see a lawyer, b: whatever you can work out with the Zs
Scenario 3 - a: if you don't mind being called a consultant
Scenario 4 - a: see a lawyer, b: whatever you can work out with X

It's no joke about seeing a lawyer - the relationships you describe could,
under
some jurisdictions, be regarded as creating an agency. Agency imposes
both
duties and liabilities for the contracting parties - and you have two
contracts:
one with the seeker and a second one with the provider. A lawyer will
help
you
limit your liability in each case.

George King
G.E. King Marketing