OT: Shooting referral commission

NickHope wrote on 2/17/2009, 4:46 AM
I find myself passing on an increasing number of requests for shooting, mostly in Thailand, that I can't or don't want to do. Producers find me on recommendation or through web searches etc.. Until now I've typically replied to the producer with my list of local guys who I know can do a good job.

However I'm not getting referrals back and it's now got the point where I feel I should probably be asking for a referral fee.

Is this normal and how does it typically work in the industry? What percentage of the fee would typically be given for a referral?

Thanks!

Comments

musicvid10 wrote on 2/17/2009, 9:09 PM
[I]". . . that I can't or don't want to do."[/i]
That suggests that the referrals should be done pro bono.

"However I'm not getting referrals back . . ."
That suggests the shooters you are passing referrals to are jerks and the customers you pass on are not satisfied, which affects your reputation. See below.

"What percentage of the fee would typically be given for a referral?"
That would reflect the amount of actual work you did in hooking up the customer.
$25 - $50 US bucks max?

Bottom line: A referral should be given with the same level of professionalism you would require if you were doing the job yourself. I was burned recently by a shooter who ducked out at the last second and sent a "friend" who was not only inexperienced, but stoned. The result was unusable footage from a production in which I had over $40,000 invested. When I handed over a check and got the raw tapes, I had no idea how bad they were. Do you think I will be calling either of them in the future? The customer's impression of the shoot is the customer's impression of you. There is no separation in their mind.

I get the impression from your posts that you are very professional and competent.
For you to assume that anyone with a camcorder and a website shares those qualities is dangerous to say the least. Just my POV as a knowledgeable consumer of video services, you understand.
rmack350 wrote on 2/17/2009, 9:30 PM
I don't know about your neck of the woods but here in the San Francisco Bay area people don't get referral fees. This isn't real estate where everyone who touches a deal gets a cut.

Usually, the way to get a buck out of these things is to keep your hand on it. You could handle the billing and subcontract the job (which is a hassle), or you could just keep on the phone. Call the client to see how the recommendation went. Call the shooter to see how the job went.

In the days when I worked freelance my motto was "the more you work, the more you'll work." It seems like 80% of my jobs came while I was on a job.

People call the first acceptable person who comes to mind, so calling that client up to check how your reference turned out is a good way to make contact, and if the person who got the referral actually makes referrals then you need to be more on their mind than some other camera operator who's standing next to them in a hotel ballroom or conference center.

Rob Mack
musicvid10 wrote on 2/17/2009, 10:02 PM
Nicely said, Rob.
In fact, nicer than I did.
If you can tell, I am still burning over one incident that occurred months ago.
rmack350 wrote on 2/17/2009, 10:51 PM
Yeah, I can tell.

I think we pretty much said the same things, but coming from different directions.

Rob
NickHope wrote on 2/18/2009, 10:02 AM
Thanks very much for your opinions guys.

>> For you to assume that anyone with a camcorder and a website shares those qualities is dangerous to say the least. <<

Musicvid, I absolutely don't assume that. There are many people with camcorders in my area but my list of shooters who I know to do quality work and who I might consider referring local jobs to literally numbers 5.

>> "What percentage of the fee would typically be given for a referral?"

But what about the enormous amount of money and hard work that went into getting to the position where I'm the one getting the enquiry? Hard work on SEO, hard work on previous jobs etc.? Surely there's a value to attach to this?

>> ...The customer's impression of the shoot is the customer's impression of you. There is no separation in their mind. <<

This is a very good point that I hadn't previously grasped, and may actually lead me to decline passing on suggestions of other shooters rather than "trying to be helpful". Certainly I should follow up some of the referrals I've already made to see if the customers were happy before I recommend the same people again.

Incidentally I already ran this past one of the shooters on my list and he tells me that a "finder's fee" of 15-25% is normal for a simple, "no-strings attached" referral.
musicvid10 wrote on 2/18/2009, 10:28 AM
(Duplicate post deleted).
AlanC wrote on 2/18/2009, 10:34 AM
Is that 15-25% of their profit or 15-25% of the job total. If it's the latter then it would probably price them out of getting the job. If it's off their profit then it may not be worth them doing the job if their pricing competitively.
musicvid10 wrote on 2/18/2009, 10:37 AM
"Certainly I should follow up some of the referrals I've already made to see if the customers were happy before I recommend the same people again."

That pretty much says it, afiac. And sorry to sound a bit cynical in my first response; no reflection on you, it's just that I lost so much credibility because someone I was told I could trust made a reckless referral.

"But what about the enormous amount of money and hard work that went into getting to the position where I'm the one getting the enquiry? Hard work on SEO, hard work on previous jobs etc.? Surely there's a value to attach to this?"

There is value in that, but it is intangible value. IOW, the referral point being the same, there is no added value to the customer if the referral came from a highly qualified source, or whether they are paying a premium for the referral, directly or indirectly. The policy of not charging for "blue sky" is one that will enhance your reputation and customer base stability in the long run.

One alternative to you, of course, is to hire one or two trusted shooters as contract professionals on a per-shoot basis. In that case, the terms of your agreement could be almost anything you wanted, from punctuality to quality benchmarks, and you could retain a contractor's fee without giving up control over the final product. A pre-conditional non-compete agreement is often part of that scenario. If a subcontractor doesn't keep their agreement with you, you can fire them or take legal recourse. OTOH if you and the customer like them, you can use them again.

BTW, I always benefit from reading your technical advice and refreshing POV on these forums.
NickHope wrote on 2/18/2009, 11:05 AM
>> Is that 15-25% of their profit or 15-25% of the job total. If it's the latter then it would probably price them out of getting the job. If it's off their profit then it may not be worth them doing the job if their pricing competitively. <<

Alan, I must admit it sounded rather high! Certainly more than I initially had in mind.

Musicvid, you didn't sound cynical and I totally welcome all opinions on my "video business" OT threads. That's exactly why I'm here. Having switched to this from an entirely different career, and being in a fairly remote location, it's often hard to know what video business "norms" are, and the knowledgebase in this forum is invaluable in helping me catch up.

Anyway thanks for the helpful opinions. With a ton of editing projects backed up, I certainly don't want to get into hiring or sub-contracting on a more official basis. I just don't have the time.