Marketing Company Start-Up Question

[nednj36]

What is the name of your state? NJ

I am poised to form a Marketing/Advertising Consulting Company Specializing in business development for mortgage brokers. The consultative approach will be print media, internet marketing, call center solutions and sales force development & efficiency evaluation.

Here is my main question:

Can I receive compensation from both the companies that I consult and the fulfillment companies that I set them up with? For example, I develop a business plan to increase sales & ROI and charge a fee of $3,500. I then coordinate internet solutions, call center and direct mail campaigns for the client and receive compensation from the internet company, direct mail company and call center company for a total of $5,000. Is this legal? If it is, do I need to disclose to my client that I'm receiving compensation from the vendors that I'm placing them with.

Thanks

 

[TomD1974]

I would NOT seek direct payment from any of the vendors in exchange for directing business their way. That is very bad form. Instead, it would be advisable to tell the vendor(s) of your intention to "partner" with them, and seek a discount. It makes no diff to the vendor and you'll still get your profit at the end of the day. This is done all the time.

Be prepared to be very honest with your broker customers that you use preferred vendors and make them aware that they can, at their option, direct you to use XYZ vendor, but that the pricing may be different. There is certainly no red flag there - even if you had no agreements, the pricing among vendors WOULD be different and your customer would understand that.

To go even further, you can use these agreements with vendors as a marketing tool - because, for example, you send so much of your business to vendor XYZ, you can save your broker customer money (pass a little of your discount back to the customer when you use the preferred vendor)