Our agency referral deal fell apart because we didn't write down the rules first

Three years ago, we had a great thing going with a web design firm in Phoenix. We'd send them clients for big site builds, they'd send us ongoing maintenance work. It was all just a handshake deal over coffee. Last month, they sent us a client who needed a full site rebuild, not just upkeep. We did the work, but then they wanted a 30% cut of the whole project fee, which was way more than we ever talked about. We had nothing on paper to say what kind of jobs the referral fee covered, so we had to pay it to keep the peace. Now the partnership is pretty much done. Has anyone else lost a good partner over a simple paperwork mistake?

3 comments

3 Comments

black.joel1mo ago

Yeah, that changed my mind. I used to think handshake deals were fine.

the_nina1mo ago

Three years ago I shook hands on a $12,000 landscaping job and the guy just disappeared after the first week. Left me with a half-dug yard and no way to get my money back. I remember thinking "a handshake is your word" but my word didn't pay for the new patio I needed. Now I won't even let my neighbor borrow my lawnmower without a quick text confirming the date. It sounds paranoid but one bad handshake deal really does change how you see everything.

jessicac2817d agoTop Commenter

@black.joel THAT'S exactly what happened to me but with a smaller amount. The moment someone screws you over on a handshake, you realize it's just fancy talk for "I hope you trust me." How many times did it take before you stopped doing them altogether? Was it one big deal or a bunch of small ones where people flaked out? I'm curious because it seems like everyone has their own breaking point with this stuff.