What to pay for intros to pot. customers

[dmz123]

Biz gurus

This is the closest forum that'believe best matches with my q

Can someone shed some light on
what % commision of yearly
Rev is appropriate for someone
Introducing us to

A) c-level folks of the potential customer

B) vp/director level ?

Yes, it about s/w. And someone is asking for 10% of rev commission for 3yrs
I feel its a bit whopping? Any info on current practices would be higly appreciated

Thanks in advance

[SerialEntrepreneurs.]

What is the annual sale worth and what are yor margins?

It is not unheard of to give 10%....not the best, might you might want to scale it back..10% first year, 5% 2nd year and 3% third year.

Or, maybe 5% of first year and 3% for the following years fo up to three years max.

Are these "reps" just making intros or are these "warm" leads that are ready to be closed or at least a proposal?

[dmz123]

Thanks SerialEntrepreneurs!

These are just intros (and not "warm", we have to do all the scutwork to get the customer accept the product). Not only we have to
round-up other folks in the customer's coporate-world, but we almost
do everything as if from scratch.

The main benefit as of now is, we are (pre-rev startup)
still in the process of forming a sales team, as such it makes it easier of
avoiding cold calls; thats all. As we are within week(s) to formalize a sales team,
the idea to make it easy for the sales too for the first few customers.

I offered 10% first yr, and then 5% and 5% next two years. Still the guy cribs, saying that 35% is actually what he expects Since I now know the #s,
I plan to be firm or atleast be selective.

_If_ the product sells _soon_, yes, we do have high margins. But pls note the underlines for 'if' and 'soon'.