If I am bringing in a client to a firm just as a just a regular employee, would it be fair to ask for a percentage cut from the project and if so, how much? What compensation should I deserve? Sorry for the lack of information. But say around 14k for entire project (arch gets 9k), and high volume. Was wondering if anyone had similar experiences to this.
Non Sequitur
Dec 13, 22 7:02 pm
no. This has been asked here several times before. You don’t know how office expenses and profits are managed so you can’t pocket part of the fee just like that. What you should do is leverage this new client to justify a higher salary or further your involvement/responsibilities.
natematt
Dec 13, 22 7:12 pm
What do you mean "14k for the entire project (Arch gets 9k)"?
If it's a project that is of general positive impact to the office, i'd expect indirect benefit, not a percentage cut, what NON is saying.
thisisnotmyname
Dec 13, 22 7:59 pm
Yeah, really, what does the OP mean here? If the office is grossing a massive $9,000.00 fee, a 10% profit for the firm is going to be all of $900!
natematt
Dec 15, 22 3:16 pm
I was finding it hard to imagine a project with 9k in architectural fees. Like what is this, a stamp on a drawing? That's like 60 hours at a dirt cheap firm...
Chad Miller
Dec 15, 22 3:32 pm
Depends on where you are. It would be around 85 hours for me.
natematt
Dec 15, 22 4:46 pm
Sure, and your level, and your firm's business model. I guess with the average architect in the us making around 35/hour, assuming a 3x multiplier target.... you should get about 85 hours. I'll resend my "dirt cheap" comment. It would not be 60 hours of my time though, and 85 hours is not much time for architecture work on a project regardless....
poop876
Dec 14, 22 9:41 am
So if you run over budget, would it mean you get it taken out of your paycheck?
whistler
Dec 14, 22 7:01 pm
I would say a $9 k arch fee is a liability rather than credit. Who can do anything for that amount and why would you???
thisisnotmyname
Dec 15, 22 1:51 pm
Well, noobs don't always understand the economics of a practice, and lots of firms keep their staff in the dark on the business side of things, for various reasons. The schools don't teach it much either. I can easily picture a person with no business knowledge demanding a $4,500 cut of a $9,000 fee and feeling fully justified.
Chad Miller
Dec 15, 22 2:01 pm
You'd have to have no business knowledge and have failed all types of math to feel fully justified in asking for that. You all got trolled.
thisisnotmyname
Dec 15, 22 2:40 pm
I think maybe I've had a rough life because in our early days, I had an employee make this exact demand. They presented us with a bunch of piddly, barely-profitable jobs and acted like they were quite the rainmaker. When advised we could not split the pint-size fees (less than 10k USD) with them 50-50, they got all huffy and quiet quit. Then we asked them to leave.
Everyday Architect
Dec 15, 22 2:47 pm
I think I know the answer already, but just to clarify, the $10k they wanted to split 50-50 was the total fee and not the anticipated profit, correct?
thisisnotmyname
Dec 15, 22 4:20 pm
Bingo! Half the total fee because they "brought the jobs in". Also, the employee wasn't licensed, so they could not have done the projects on their own.
Chad Miller
Dec 15, 22 4:26 pm
Sounds like you should of done a better job mentoring the employee . . . .
thisisnotmyname
Dec 15, 22 4:42 pm
Well, I did patiently walk them through the projected labor cost of doing the stuff, our overhead multiplier etc., but they still wanted a big cut of the fee. They really didn't seem to comprehend what I was showing them or perhaps thought I was trying to trick them somehow. It was a challenge employing this person. We hire much more carefully now.
Chad Miller
Dec 15, 22 4:49 pm
I was going to add '"although they could just be that they were ::derp::" but I got a phone call and couldn't edit my post.
Sorry you had a tough time with that particular staff member. No matter how careful and diligent you may be in the hiring process it happens to everyone.
If I am bringing in a client to a firm just as a just a regular employee, would it be fair to ask for a percentage cut from the project and if so, how much? What compensation should I deserve? Sorry for the lack of information. But say around 14k for entire project (arch gets 9k), and high volume. Was wondering if anyone had similar experiences to this.
no. This has been asked here several times before. You don’t know how office expenses and profits are managed so you can’t pocket part of the fee just like that. What you should do is leverage this new client to justify a higher salary or further your involvement/responsibilities.
What do you mean "14k for the entire project (Arch gets 9k)"?
If it's a project that is of general positive impact to the office, i'd expect indirect benefit, not a percentage cut, what NON is saying.
Yeah, really, what does the OP mean here? If the office is grossing a massive $9,000.00 fee, a 10% profit for the firm is going to be all of $900!
I was finding it hard to imagine a project with 9k in architectural fees. Like what is this, a stamp on a drawing? That's like 60 hours at a dirt cheap firm...
Depends on where you are. It would be around 85 hours for me.
Sure, and your level, and your firm's business model. I guess with the average architect in the us making around 35/hour, assuming a 3x multiplier target.... you should get about 85 hours. I'll resend my "dirt cheap" comment. It would not be 60 hours of my time though, and 85 hours is not much time for architecture work on a project regardless....
So if you run over budget, would it mean you get it taken out of your paycheck?
I would say a $9 k arch fee is a liability rather than credit. Who can do anything for that amount and why would you???
Well, noobs don't always understand the economics of a practice, and lots of firms keep their staff in the dark on the business side of things, for various reasons. The schools don't teach it much either. I can easily picture a person with no business knowledge demanding a $4,500 cut of a $9,000 fee and feeling fully justified.
You'd have to have no business knowledge and have failed all types of math to feel fully justified in asking for that. You all got trolled.
I think maybe I've had a rough life because in our early days, I had an employee make this exact demand. They presented us with a bunch of piddly, barely-profitable jobs and acted like they were quite the rainmaker. When advised we could not split the pint-size fees (less than 10k USD) with them 50-50, they got all huffy and quiet quit. Then we asked them to leave.
I think I know the answer already, but just to clarify, the $10k they wanted to split 50-50 was the total fee and not the anticipated profit, correct?
Bingo! Half the total fee because they "brought the jobs in". Also, the employee wasn't licensed, so they could not have done the projects on their own.
Sounds like you should of done a better job mentoring the employee . . . .
Well, I did patiently walk them through the projected labor cost of doing the stuff, our overhead multiplier etc., but they still wanted a big cut of the fee. They really didn't seem to comprehend what I was showing them or perhaps thought I was trying to trick them somehow. It was a challenge employing this person. We hire much more carefully now.
I was going to add '"although they could just be that they were ::derp::" but I got a phone call and couldn't edit my post.
Sorry you had a tough time with that particular staff member. No matter how careful and diligent you may be in the hiring process it happens to everyone.