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Introducer commission

How much do you normally pay to introducer? I have someone who claims to have many leads and has suggested a fee of £100 per client. Is this excessive?

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Introducer?

Is this payable on sign up, in which case it is very reasonable and low risk, or is it payable on being given a lead?

If the fee is being paid on being given a lead then I would approach with care. Some 'introducers' are realistic and genuine. Others are not and mislead both the potential client, and the accountant that is paying the fee. When one or the other steps back (because of the misrepresentation)  the introducer still wants the fee.

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reasonable
As Shirley said. If that's on sign up then yes its very reasonable.

Look at it in the context that accountancy practices sell for about one pound per pound of GRF.

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Yes, I believe it is payable upon sign up. The payable upon lead/per enquiry is £2-£5.

Ok, it is good to know that the price is reasonable. I never realise that I have to pay so much money just to get a new client. I will try to negotiate a rebate clause in case the client backs out after signing the engagement letter. What is the normal term or definition of "sign up"?

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£2-5 per lead...

...Who is this with (if you don't mind me asking)?  Sounds too good to be true.

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have you

thought about having an introducer scheme for your clients? This may produce better clients and be cheaper.

We have used Champagne (once new client signs Terms) delivered by courier (M & S in those days) and Resturant Voucher Scheme (value £50).  Both have produced good quality clients and no duffers yet.

It just needs some effort on your behalf to set it up have the advertising printed etc.and Terms and Conditions on your website.

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Introducers

We operate an introducer scheme which pays a minimum of £1000 for a new client. We have found that most accountants are very happy with this!

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