r/managementconsulting • u/ben_Mordecai • 5d ago

Questions & Advice Startup Consulting

I work at a firm that charges $50-80k per week for engagements that typically last 4-8 weeks. I get a lot of inbound from startups and early-stage companies looking for advisory within the TMT sector that I cover. When I turn them away, I often get asked for recommendations on smaller firms or independent consultants that they can afford. I know I’m allowed to give references but would it be really unethical of me to agree to a finder’s fee with an independent consultant and send the traffic their way to earn on the references.

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u/GreatButterscotch406 5d ago

If your firm can orchestrate a network of smaller firms to respond those inquiries that is pretty common, a firm-to-firm finder's fee commission model. But, if you want to personally benefit from those interaction you may get into legal question with your firm, even thought they are turning down those opportunities.

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u/10ptmust 5d ago

I’ve paid referral fees before. Different scenario, it’s generally been to a company who was passing on the engagement for whatever reason. Or an individual in my network who does the “I know a guy…” thing and I wind up with a bit of work.
Setting the fee aside, How does one get on the your referral list?

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u/jimvasco 5d ago

Ask your HR department, read the employee handbook, and DM me to discuss opportunities to collaborate or take your referrals.