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Associate Rates, Margins, Client Introduction Fees - what % to pay?

 
#1 Associate Rates, Margins, Client Introduction Fees - what % to pay?
15/02/2017 01:54

DiAirey

Hi,

I'm new to this forum and looking to gather a bit of intelligence on what consultants pay when using associates. I've a limited company and don't employ others directly but when I have a lot of work on I sometimes use associates to deliver on my behalf. I tend to pay maybe 65-70% of what I am charging them on to the client organisation and I was wondering what others do in similar situations.

Also, if another consultant or business passes on a client do you pay a percentage of any resulting business (I've not been in this situation yet)?

I am currently collaborating with a couple of other consultants on some training and workshop offerings. We haven't set up a formal partnership yet and I am the only one with a limited company so at the moment any work we generate is going through my business and we are thinking to pay ourselves equal day rates. But should I be looking at retaining a certain percentage to cover any resulting corporation tax implications? And if one of us brings a client to the collective table we were wondering about paying a finder fee.

It would be great if anyone has any insights to share,

Thanks

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