KiasuParents - Parenting in Singapore

Anyone has any idea how the referral fee works? A friend has rented a room from a centre to teach some programmes. The owner wants 35% of her fee if he refers some kids to her wonder is 35% a reasonable rate?

Just as a reference, if I am not wrong, cc also takes 30 to 40 per cent of the course fee.

FantasyLandDreams wrote:Just as a reference, if I am not wrong, cc also takes 30 to 40 per cent of the course fee.

Yes cc and RC take 35% of the fee, that is why nobody wants yo teach there

the question is can she get a better deal elsewhere in terms of fixed cost, variable cost, deposit, startup cost (including renovation), and admin cost? CC provides the space, the utilities, reno already done, admin staff already there to take the load off your shoulder. They leverage on their economies of scale, and you are paying them for space, services and lowered risk to yourself.

Whenever I walk past an empty shop, I shudder for the owner thinking of the monthly cost of maintaining that empty space.

ammonite wrote:the question is can she get a better deal elsewhere in terms of fixed cost, variable cost, deposit, startup cost (including renovation), and admin cost? CC provides the space, the utilities, reno already done, admin staff already there to take the load off your shoulder. They leverage on their economies of scale, and you are paying them for space, services and lowered risk to yourself.

Whenever I walk past an empty shop, I shudder for the owner thinking of the monthly cost of maintaining that empty space.

Oh she only rents a room from a centre
, she doesn't need s centre to run her class. The owner is smart to rent out a room and asking for referral fee if he recommend kids to her

recommend kids to her is like free marketing,
i guess 35% is variable cost in additional to a min fixed cost of using the room of that centre?

how about your friend's own clientele? does the owner charge any thing?

Is 35% continuous or only off the 1st month? Usually most tuition agencies will ask for 50% of the 1st month. Continuous usually will fall between 10%-30%. It really depends on your friend. Does she require any recommendations?

meinteel wrote:Is 35% continuous or only off the 1st month? Usually most tuition agencies will ask for 50% of the 1st month. Continuous usually will fall between 10%-30%. It really depends on your friend. Does she require any recommendations?

She just found out from her friend that the market rate is between 20-30% and is just one time and don't need to pay rent. The owner volunteer to recommend and asking for rent too! This is a faster cash for the owner

I dont think it will be 1 time and don't need to pay rent. If so, please recommend me a few centres that I can engage with. I would be very interested to get a free place. Haha

kitty2 wrote:

meinteel wrote:Is 35% continuous or only off the 1st month? Usually most tuition agencies will ask for 50% of the 1st month. Continuous usually will fall between 10%-30%. It really depends on your friend. Does she require any recommendations?

She just found out from her friend that the market rate is between 20-30% and is just one time and don't need to pay rent. The owner volunteer to recommend and asking for rent too! This is a faster cash for the owner

The owner's main revenue model is rent. It's not based on revenue sharing of the business. So his proposition is simply that... a business proposition. No compulsion. It's up to your friend to decide if his referrals are worth the 35% finders' fee, or it is better for your friend just to advertise herself. Personally, I think it is very high.