Here’s some positive news for a change. NPAworldwide is ahead of its year-to-date plan on the volume of splits being made in the network. I’m pleased to see that many are experiencing a boom in business as the world returns to work, and that we’re sharing jobs and candidates with each other! With all of this activity, now is probably also a good time to share a reminder about split fee arrangements between members.
The presumed arrangement is 47.5% of the fee to each partner and 5% of the fee to NPAworldwide. Typically the importer will pay the 5% to NPA and send the exporter 47.5%. If there are reasons members wish to vary from this formula, it must be agreed to in advance (before any candidates are submitted) AND in writing. The variance can only be applied to the split between partners; NPA will always require 5% brokerage. There may be times when it makes sense for one partner to receive more of the fee – if it’s an international deal and the exporter is doing the lion’s share of the work in the client’s location, for example, but these should be occasional exceptions. In addition to split fee percentage adjustments, there can be a host of other points to be considered. We’ve tried to account for these points in the NPAworldwide Operations Manual, Section E. Financial Obligations. I congratulate those who are experiencing success in the network!