I want to hire a few contractors to help me get leads for my business.

I am planning on paying the contractors commission only. i.e. I get $X in sales from there referral and they get a fixed % of $X.

Of course I want to get as many new and repeat clients as possible. My issue is: how do I make the agreement fair for my contractors and give them a strong incentive, but at the same time not have to keep paying for repeat business from a client that was previously referred?

There are three basic situations:

• Individual one time or first time sale - Obviously I will pay for this.
• Repeat business from the same client - This is what I want to avoid having to pay for in perpetuity.
• Bulk Sale - I will pay for this even if it involves previous clients assuming the contractor initiates / prompts the sale and the quantity is above a specified amount.

I want to hire a few contractors to help get leads for my business.

I am planning on paying the contractors commission only. (i.e. I get $X in sales from there referral and they get a fixed % of $X.)

Of course, the goal to get as many new and repeat clients as possible. My issue is this:

How do I make the agreement fair for my contractors and give them strong incentives to work hard without having to continue paying for returning business from previously referred clients?

There are three basic situations:

1.Individual one-time or first-time sale - Obviously, I will pay for this.

2.Repeat business from the same client - I want to avoid having to pay recurring commissions on.

3.Bulk Sale - I will pay for this even if it involves previous clients assuming the contractor initiates/prompts the sale and the quantity is above a specified amount.