If I am a third party organization that arranges engagements for speakers, what is an appropriate margin for me to make on that service?
This is a follow up question about how much it costs to have a speaker come to your organization. I am actually not looking to hire a speaker for my employees, nor am I thinking about becoming a speaker myself. I am just doing some research for a colleague on this topic.
My example of the type of thing this would be is a Myers Briggs discussion leader. If I know how much I'm actually going to pay the speaker, how much do speaker's agencies and the like take home?
(Thanks so much for all the excellent responses to the original question. Tons of food for thought and helpful ideas for things to consider!!!)
20% is reasonable. Anything beyond that would make your client go to the speaker directly.
If you are a licensed broker I think it's 10-20% but unlicensed you can get in trouble for doing this too often in certain fields (Like business real estate) be on the safe side and go for 10% and if you manage to broker 2-3 deals go ahead and get licensure for tax purposes etc.
I think the question is what profit do you consider satisfactory? From my experience a 20% - 30% margin is fair and in line with other organisations.
Lindsay.. I wouldn't complicate it...as a speaker myself, I am willing to pay someone anywhere between 15-25% of my speaking fee. The only thing that differentiates if I pay them 15 or 25 is the service offerings they have. Some have little effort into securing an engagement for me - 15%...others, seek out, pitch, manage and firm up an engagement - 25%.
I wouldn't complicate it for you or the speaker by coming up with a variety of %'s...15% is 15% whether 10.00 or 10,000
I think Sunoop described it great and agree the standard would be 15% to 30%
It's all about the perceived value and your target persona. Look at all costs including your time and find a fair amount to charge.
A standard margin that is recommended is anywhere between 15% to 20% but then it also depends on the value of the deal/order .. Say if the value is less than 1000$ you could charge say 30% and if its between 1000$ to 3000$ then a charge of 20% and >3000$ could be at 15%.. But the best person to decide is you :)