Things happen fast in consulting. A prospective client calls at 10:30 a.m. and wants a proposal by 3:00. Or, you're booked solid, but need to create a project team overnight. Even though you're rushed, it's dangerous to move forward without a paper trail. If you're bringing in partners, subcontractors, or employees, be sure every part of your agreement is documented. That can prevent weeks or months of litigation—or just plain bad feelings.
I get many requests for work I don't want to do. Either I'm bored because I've "been there, done that," or it's outside my area of expertise. If I like the client, and the project interests me, I'll bring in a superstar partner or subcontractor and take a finder's fee, usually 20%.
That was the case here, where the client wanted to roll out a national teambuilding, and I didn't want to travel. One of my friends who thrives on travel is a top expert in teambuilding. Here is the agreement I created to prevent conflicts or disagreements between us.
September 9, 20—
Fee Split for LAM Asia
- Scope of Project. LAM Asia initially wants two half-day programs, but we expect to roll out the teambuilding program nationally to many other regions.
- Fee Split. 20% of total of any and all gross revenue will go to CareerLab for this project; 80% of all collected fees will go to Audrea Endsley. This formula applies to both consulting and testing & assessment, if it is incorporated later.
- Expenses. Out of pocket expenses like printing, copying, will be invoiced separately, and reimbursed at cost without markup.
- Billing. The project will be delivered under the CareerLab name. CareerLab will invoice LAM Asia, and Audrea Endsley (Endsley & Associates) will invoice CareerLab.
- Payment. CareerLab will pay Endsley & Associates invoiced amounts within 10 days of collecting from LAM Asia.
- Duration. After the first year of the teambuilding engagement, all teambuilding revenues will go to Audrea Endsley, and CareerLab will not be compensated for teambuilding.
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Bill Frank
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Audrea Endsley
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Date