Say you offer an online service and you’re getting lots of business, but some of it is other people charging double what you charge and just outsourcing to you so they’re basically making the same profit as you but without doing any work.

Do you:

1. Double all your prices (since people are apparently willing to pay that much)?

2. Say "fuck you" and start requiring proof from all future customers that they are your actual customers and you’re not being outsourced to through some self-appointed middleman?

3. Work out some sort of mutually beneficial agreement (and if so, what kind)?

4. Something else?

x 1.75 my prices and contact their customers.

I don’t know who their customers are. In essence he is bringing me customers that I wouldn’t otherwise have access to.

But fuck if my ego is gonna let someone else make what I make when I do all the work.

Maybe I should charge him a premium and let him keep the difference

My other option I guess would be to make all future clients send me an email from their domain so I know I am dealing with the end customer and not a self-appointed middleman.

A similar example:

Say someone comes to you and says "hey i want you to develop www.domain.com."

You’re like "ok, cool." I think a security measure would be to say "send me an email from ." That way, if the person you are dealing with is actually the owner, they will have no problem complying. If the person you are dealing with is outsourcing to you, they won’t be able to comply.

Hmm…

I do like increased business, however. Maybe I’ll start charging a premium for outsourcers so they get their commission or whatever and I don’t get totally screwed.

How so? Retaliatory strike from the outsourcer?

What about "hey fuck you for making what I make and you’re not doing any work you asshole?" I bet a lot of people would rather go out of business than allow that to happen.

Your kidding right?

You should be charging exactley what you want to be gettinging happily for the work. If someone is able to get double that well then good on them. Asking them to verify? what does it matter you are getting work at the rate that you set. period. If you feel uyou should be making more then charge more and keep it consistent.

Dont get your panties in a bind and loose a ton of business because your trying to make an extra buck

I do this all the time.

I’m no designer, but I often take on jobs that require design work (identity, logo, letterhead etc..) and just ship the work off to a designer that are good at what they do. The designers that do work for me know that I am sending work to them that people have contacted me for. In essence I’m making a margin on the portion of the work that they do.

Same goes for development if it is something beyond the scope of something I can accomplish on my own I will outsource portions of the project to coders.

They don’t mind it one bit because I act as a filter between the retarded clients that we all have to deal with on a day to day basis. They all – from what I can tell – enjoy taking on my projects because they know I will give them all of the information they want to one-shot the project with minimal revisions.

So obviously I have a bias against what you’re saying in this argument but if you want my opinion, I wouldn’t go directly after this persons’ clients. After all, work is work and if this person is paying you what you’re asking you really don’t have much to complain about, at the end of the day you’re getting work.

I don’t think it would be out of line for you to ask for a higher wage from this person (obviously dependent on your past experiences). Designers have asked me for more money, sometimes I give it to them and sometimes I don’t. If I don’t pay more for the project I let them know that it won’t be worth my time to manage the project and that I can ask another designer to do the work if they are not interested. 9 out of 10 times they end up taking the job anyways.

Thanks for the replies. I’ve never been in this situation before so I’m trying to see this from all perspectives.

He has access to people I don’t have access to

I’m selling to people "in the know." He’s likely selling to outsiders. I don’t know who his client base is, tho. I should ask.

Word.

Generally, in the "real world" you’d be considered the wholesaler. And actually, in the "real world" you’d be inclined to offer a discount for bulk orders.

I think you’re mostly just mad that someone has a better business plan.

I wouldn’t make customers jump through hoops to send you emails from specific domains and other stupid shit. Work is work, and it pays your bills… If you’re that worried about it, then SLOWLY increase your prices. Say it’s due to demand and that you can only handle so much work.

OR, outsource what you’re doing to someone cheaper, and do the same damn thing.

It’s not his fault you priced yourself cheap enough that he could mark it up..

This is what makes your stuff worth 1/2 of what "his stuff" is worth.

Without you his stuff is worth the same, his margin depends on what the next guy charges.

come on man… think a little

without you he will just go elsewhere.

Be happy for the work you are getting and stfu. This isn’t some pride or popularity contest..

If you’re making the amount of money you charge I don’t see what the problem is people send me design work all the time from their clients but I still make the same amount. It’s just extra business I wouldn’t have otherwise.

You’re in the position you want to be in.

You get a lot of business from a few customers. They make their money, you make your money, and you don’t have the risk of dealing with flakey customers.

Don’t fuck it up.

No…. without you, his stuff comes from someone else…

The value of "his stuff" is in his relationships with the people willing to pay for it.

i fail to see the problem.

he is paying you what you ask for, and he is giving you more work then what you get on your own.

more work @ your price = win.

i can guarantee that if you undercut him you will damage that relationship, and obviously hurt your future opportunities with him

Charge what you want to charge do the work get paid.

Word.

Generally, in the "real world" you’d be considered the wholesaler. And actually, in the "real world" you’d be inclined to offer a discount for bulk orders.

I think you’re mostly just mad that someone has a better business plan.

I wouldn’t make customers jump through hoops to send you emails from specific domains and other stupid shit. Work is work, and it pays your bills… If you’re that worried about it, then SLOWLY increase your prices. Say it’s due to demand and that you can only handle so much work.

OR, outsource what you’re doing to someone cheaper, and do the same damn thing.

It’s not his fault you priced yourself cheap enough that he could mark it up..

This is what makes your stuff worth 1/2 of what "his stuff" is worth.

Without you his stuff is worth the same, his margin depends on what the next guy charges.

come on man… think a little

without you he will just go elsewhere.

Be happy for the work you are getting and stfu. This isn’t some pride or popularity contest..

If you’re making the amount of money you charge I don’t see what the problem is people send me design work all the time from their clients but I still make the same amount. It’s just extra business I wouldn’t have otherwise.

You’re in the position you want to be in.

You get a lot of business from a few customers. They make their money, you make your money, and you don’t have the risk of dealing with flakey customers.

Don’t fuck it up.

No…. without you, his stuff comes from someone else…

The value of "his stuff" is in his relationships with the people willing to pay for it.

i fail to see the problem.

he is paying you what you ask for, and he is giving you more work then what you get on your own.

more work @ your price = win.

i can guarantee that if you undercut him you will damage that relationship, and obviously hurt your future opportunities with him

Charge what you want to charge do the work get paid.