Forum Moderators: LifeinAsia
Thanks
My guess on appropriate cut:
Sales commission (you refer, he does everything): 10% - 25%
Subcontract (you take the job, he does all the work): 25% - 60%
Needless to say, there is a lot of variation depending on how involved you are, the pricing, etc. Don't get locked into a low hourly rate with the client early in the process. I've had contractors who wouldn't work for less than a specific hourly rate, and in those cases I had to raise the rate to the customer to allow sufficient margin. In cases where I gave the customer a number early on, it created a margin squeeze if the subcontractor (or the eventual provider) was more expensive than anticipated.