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Author Topic: Charging for Referrals (?)  (Read 769 times)

PHInventor

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Charging for Referrals (?)
« on: 07-12-11 at 05:50 pm »

Let's say you have hired an accountant, attorney, consultant, etc. to work on your business development plans. 

As the work proceeds, you ask this person for a referral to someone in another area (e.g., you ask an attorney for an accountant; ask an accountant for an attorney; etc.). 

The person then comes back with a few names and says, "I talked to so and so and he's expecting your call." 

Do you expect this person to charge you for the time spent "researching" this string of referrals?  Or do you expect that because of their network of contacts, they should simply provide the name or names at no charge to you, and expect that their reward for the referral will be the goodwill from the referred-to party?
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JimIvey

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Re: Charging for Referrals (?)
« Reply #1 on: 07-12-11 at 06:38 pm »

Do you expect this person to charge you for the time spent "researching" this string of referrals? 

I don't.

However, I tried to think of a circumstance in which charging for time researching professionals would be properly billable to the client.  If the accountant is a forensic accountant needed for litigation in support of a case managed by the attorney, checking out credentials and such would be properly billable as the accountant needs to fit the particulars of the case.  If the consultant is a professional witness needed for similar litigation, the research is properly billable.

I have a hard time imagining other circumstances under which billing for time looking up referrals would be appropriate.

Regards.
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