Have deal where I get 20% of all business thru website & ebay

Someone contacted client via ebay about a business deal. Do I get a cut?

[LABachlr]

I have a deal setup with a client where I get 20% of all business that goes through the client's website and ebay store. This deal was just set up a week ago. So we are still working out the kinks in the contract, which there really haven't been many, if any.

However, my client has mentioned a couple of times that we needed to "renegotiate" the contract, which we didn't. But since they felt comfortable suggesting that, then I feel the same way regarding this situation.

In any case, someone just emailed my client asking if my client would like to sell them their products wholesale, and they would modify them and resell them.

My question is, if they do that business offline, meaning the prospect does not buy the items thru ebay or my client's website, am I still entitled to my 20% seeing that if it weren't for my client's ebay presence which I set up, my client would not have gotten that contact?

And if I do get a cut, do I get a cut of that business for life? I suppose that would be stated in the contract. So, I guess my question is, is that a fair deal? If not, what would be a fair deal?

There was nothing stated in the contract about this either way. And if I don't address this issue, then there is potential for all sorts of workarounds for business deals that were initiated via ebay or via the website.

[Drastic]

>There was nothing stated in the contract about this either way.

Sounds like they won't be obligated to compensate you.

[jomaxx]

I think it would be appropriate for you to get something as a thank-you or acknowledgement of how you helped them, but it doesn't really sound like this sale went through the website in the sense that you or your partner envisioned it. Also 20% seems like too high a commission to expect on a wholesale deal.

[Feydakin]

We do a lot of work on a transaction fee based model.. The first thing about your post that scares me is the "renegotiate" at some time comment.. I can tell you when this will happen.. It will happen the first time he has to write you a very large check for just one month's service.. At that point he will forget about the time and effort put into the project to get it there, and only see the big check walking out the door.. Been there, done that.. It sucks..

It is fair to renegotiate contracts though as circumstances change.. We put a 4 year lock on everything in our contracts.. We figure that if we can't make a fair amount of money off of the project in that time we shouldn't even be doing it.. Plus, after four years the site is pretty much on autopilot mode anyway with only minor maintenance happening.. So a lowering of the percentage may not be something we would resist..

The key is to always be adding new transaction based clients so that you never find yourself without a client..

As for the other.. Don't worry about it and focus on the 20% of the other stuff you could be getting..

[tsinoy]

if you are worried about issues like this(losing potential wholesalers) maybe one option is to operate your own brand?

anyways, I have not done a whole lot with regards to this approach but what I have works well for me. It would also depend on your goals, if your goal is to build a business that you will be running in the long run then maybe its worth the time to establish your own brand? or maybe your goal is to set up something and let it run on autopilot, so you can just get the checks while you're on the beach enjoying yourself(there's of course money that will fall through the cracks with this approach.) But its a gray line some people can still do the later and still rip all the profits accordingly, depending on how sophisticated the set up is.