February 28, 2012 2:14am CST
A friend of my boss sent him a contract. The contents of the contract said that he would introduce "customer" for our company. Then he will be entitled to a commission of about 2% of the total contract value. This is perfectly reasonable. However, there are other terms that I think it is not reasonable. His commission will be similar if the "customer" introduces someone to us. And we must pay all fees for him if he must go with 'customer' to visit our factory. My boss does not talk about these with me. He will accept these conditions. How do people think? These conditions are normal or not?
• United States
29 Feb 12
Your boss need to ignore him or ask him to go fly kite with his own contract term quickly, the contract not only sound ridiculous but also full of nonsense, every piece of business transaction refer by his recommended customer, friends, relative and whatever need to include his commission too, he will be a billionaire in a matter of month, or even week in that case.
• United States
2 Mar 12
Referral fees are sometimes done. Whether or not your boss accepts the contract will depend on whether or not your boss trusts the friend and values his relationship with him a lot, and secondarily on whether or not he believes that his friend will collect that money or not... If he believes that his friend promises things but does not follow through, he may not feel at all frightened about signing such a contract as he would not have to worry about his friend collecting any money. Or, if he believes his friend will send him customers which will give him lots of business, he may think that having those customers while helping his friend out is a good deal.