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.