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Old 09-15-2005, 12:13 AM   #1
Jen Reinstadler Jen Reinstadler is offline
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Kickbacks to clients?




I have a client who is more than thrilled with the portraits I've done for him. He is an artist of sorts himself, making and marketing custom knives and carved gun stocks. He says he wants to take one of the paintings he commissioned from me on the road with him as a backdrop or decoration for his booth. He's also very social, and he and his wife entertain guests about every week. He's sure that he'll be referring new clients to me, and jokingly (though not joking) commented that I ought to pay him a 10% commission for each referral.

My chest tightened when he suggested it. I don't know if it's because of some breach of protocol or something more personal. My husband doesn't like this guy at all, for reasons I won't get into too deeply. Let's just say he's eager, he's persistent, and he's dying to make a good deal.

Is his offer reasonable, or is this crossing a line?
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Old 09-15-2005, 01:04 AM   #2
Kimberly Dow Kimberly Dow is offline
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If he is unlikable, I'd steer away.

But, having said that - I have a couple folks that are odd spokemen for me...like one bookstore owner who has gotten me a couple commissions. I told her to keep up the good work and I would pay her 10%. It was my idea and it paid off.
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Old 09-15-2005, 09:15 AM   #3
Michele Rushworth Michele Rushworth is offline
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His suggestion of 10% for a finders fee is reasonable, but if you don't want to work with him just smile politely and hope he eventually gets the message.
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Old 09-15-2005, 04:43 PM   #4
Chris Saper Chris Saper is offline
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Hi Jen,

First, I think a 10% referral fee is very reasonable. But the fact that you have had such a negative visceral response to this man, as has your husband, probably has merit.

I can only speak for myself, but every time I've overridden my gut on this kind of thing I 've regretted it.
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Old 09-15-2005, 08:56 PM   #5
Marcus Lim Marcus Lim is offline
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A happy customer is always the best informal rep of your services. I think having 10% for him is a good thing, as it helps to keep your dealings professionally with him. However, i wonder if it'd be good to have him sign a contract stating the agreements made between the both of you? I hope to hear some comments on this from the floor.

As for your husband's dislike for the fella, I've learnt the merit to get to know the people that you really don't like - you never know they might be true gems in your life.
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Old 09-15-2005, 09:30 PM   #6
Chris Saper Chris Saper is offline
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Hi Marcus and Jen,

Marcus, your response is very elegant.

I think that age has made me a bit cynical, as well as having the experience of misplaced confidence - so we all bring our personal experiences to bear. Jen , you'll just have to decide what you feel Ok with. It seems, on the surface, like a no risk scenario.

I agree with Marcus, clarify everything you can up front. If he balks at anything written, that's probably a big red flag.
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Old 09-15-2005, 10:00 PM   #7
Carol Norton Carol Norton is offline
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Listen

[QUOTE=Chris Saper]

First, I think a 10% referral fee is very reasonable. But the fact that you have had such a negative visceral response to this man, as has your husband, probably has merit.

Jen, I concur 1000% with Chris' comment that overriding one's intuition (some call it "gut") can result in irrefutably wrong consequences unseen by our limited vision. Putting everything on paper is a really good thing, but NEVER, EVER go against your own gut. The % isn't the issue. Long range consequences are.

My gut/intuition has NEVER been wrong. Listen to yours. It knows.
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Old 09-15-2005, 11:06 PM   #8
Brenda Ellis Brenda Ellis is offline
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I just dropped off some cards at an upscale Bridal Boutique in the "very nice" part of town. The owner of the shop gives her customers Bridal Packages that include ads/coupons/gifts from other vendors of services a bride-to-be might be interested in.
She's asking for a $25 referral fee for each customer I get through her. I had to tell her that she should ask for 10%, and then told her that's what I would give her if I got business through her. She's got her own business and she doesn't want to be an art agent. And fair is fair.

It sounds like this guy wants to be some sort of part time "agent" for you and that smells like trouble. I don't know where he goes when he goes "on the road" but do you think that the people who will deal with him would be in the market for portraiture at your prices? And you can't control his attitude or what he says as he is out there "drumming" for you. If he's an abrasive sort of fellow, people could make a bad association between him and your art.

My clients refer me by word-of-mouth for free because the people they are referring are their friends, and they want to give a good tip to them. I think it's rather gauche of him to want to make money off of what he tells his friends.

Risk...reward...risk.....reward. Sounds like a bit of risk and no guarantee of any reward.
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Old 09-15-2005, 11:59 PM   #9
Jen Reinstadler Jen Reinstadler is offline
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Wow, so many great responses! Thanks for everyone's input!

Marcus, I wouldn't have thought of the contract with this person, we've been very much on a handshake basis so far. Boundaries have been part of my issue with him from the beginning. IF I decide to accept his proposal, I will definitely get everything in writing. Thank you.

And I also agree with you about getting to know people you don't like. I have found that I tend to dislike people who are most like me, because I see my most annoying qualities reflected back at me.

As for the man's character, he's neither unlikeable nor abrasive. He's actually very outgoing, embracing, and friendly. I actually enjoy his company in general. But he loves to barter, and that tends to get him into trouble. In his heart, I really believe that he thinks he's tailoring a deal that is perfectly balanced and mutually benficial. But from my own experience and from those of several mutual friends, he has a tendency to get what he wants from both sides of the equation (he sort of decides what he wants to give in exchange for what he wants to get). So people get offended and he doesn't know why. And he's very difficult to turn down. Yes, I initially bartered with him, but we are on a strictly cash basis now, and he's happily making installments on a third project.

So actually he would make a great rep if that's what he wanted to do. On the other hand, even his friends are a bit wary. So I still have a bit of a dilemma.

All that aside, I'm glad to hear that others of you have no issue with the 10% referral fee. Certainly, it beats the heck out of gallery commissions!
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Old 09-16-2005, 12:10 AM   #10
Jen Reinstadler Jen Reinstadler is offline
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Brenda, my husband was already riding your train. On second reading of your posting, I think you've assessed the situation quite well.

And let us know how the wedding boutique angle works out for you. I have a bridal portrait in my portfolio, and I've thought of doing the same thing myself. I even wondered about actually hanging the original in the shop, but that's all the further I've gotten...just thinking about it.
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