Referral fee?
Thread poster: Srini Venkataraman

Srini Venkataraman
United States
Local time: 14:02
Member (2012)
Tamil to English
+ ...
Dec 16, 2013

I completed a work for Agency A ( 3rd or 4th job). A referred me to Agency B. Completed B's work and got paid in one week. Now A's invoice is overdue by 1 month ( normally payment is due in 2 weeks). Sent first reminder @1 week after due date.Should be this treated as referral fee? Should I harp on this overdue whenever A gives me a new job?

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Sheila Wilson  Identity Verified
Spain
Local time: 20:02
Member (2007)
English
+ ...
What was agreed? Dec 16, 2013

Srini Venkataraman wrote:

I completed a work for Agency A ( 3rd or 4th job). A referred me to Agency B. Completed B's work and got paid in one week. Now A's invoice is overdue by 1 month ( normally payment is due in 2 weeks). Sent first reminder @1 week after due date.Should be this treated as referral fee? Should I harp on this overdue whenever A gives me a new job?

No way can it be treated as a referral fee if that wasn't what was agreed at the time. Any fee should have been negotiated before you were even given the contact details. It's too late for them to demand one at this stage.

Even if a fee was agreed to, it doesn't replace payment of an invoice. To guarantee that you are taxed correctly and don't give the impression that you are trying to hide income, you should separate the two: (1) you receive payment for your work, (2) you pay them a fee, even if it's exactly equal to the invoice amount.

You did the right thing, IMO, by sending them a reminder after 1 week. If they didn't respond then you need to send them another. In the absence of any payment (and particularly if there isn't even an acknowledgement of the debt), why would you possibly want to do more work for them? You are simply risking losing more money. Personally, I would respond to any further requests for work with a request for immediate payment; work to commence on receipt.


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Srini Venkataraman
United States
Local time: 14:02
Member (2012)
Tamil to English
+ ...
TOPIC STARTER
referral fee? Dec 16, 2013

On checking the dates, A had acknowledged receipt of 1st reminder. I had sent a 2nd reminder @ 3rd week. No response recd nor any more reminders sent. A did not demand referral fee, my query was whether it may be construed as a referral fee by him? I am aware that these are 2 diff transactions and the first is for the work performed whereas referral needs a mutual consent about the amount, if at all it is wothwhile. Your stand that "further work to be done only on receipt of pending amount"- that's what I think I will also do. Thanks for clarifying.

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