Starting a Medical Billing Business > Starting Your Own Medical Billing Business

Sales commission---what is reasonable???

(1/2) > >>

nickdylan:
My question is somewhat confusing, please bear with me.  I brought a unique idea to a large med billing company (60+ billers) and we are entering into contract where I will have exclusivity for all marketing/sales of this "niche" service I propose to prospective clients.  Is there a "industry rate" to expect, or any formula to calculate which I could use as a baseline?  The companies billing from this venture alone will be between $90k-$250k per month out of the gate @ approx. 8%-10%.  They are producing all marketing and support material.  Thank you in advance!   

Michele:
It sounds like you can't be very specific or you risk losing your idea, but I really can't tell what service you are asking me to give you an industry rate or baseline for.  You don't mean for actual billing do you?

Michele

nickdylan:
I'm sorry for confusing you.  They will be doing the actual billing @ a 8-10% service fee.  I will be representing the company as a sales associate, so I will be compensated a percentage of the 8-10% that they charge for services.  They professed that 2% was the "norm" for this type of arrangement. Maybe the situation is unique to you or anyone for that matter, but I thought I just check before entering into contract. 
I have visited your site since June of '08, and I think you provide people a great service.  I had originally planned to form my own company and build from there, however, the value of a 15 year established company, fully staffed and software systems in place, seemed like the more logic approach at the given time.  Best Regards.

Pay_My_Claims:
Marketing...hummmmmm be careful of the Anti-Kickback law.

nickdylan:
Thank you.  I think Stark is more a worry than Anti Kickback, but not in this case.  Termed contract, stated fee structure, etc., presented to all parties in advance covers most of the problems the way I understand it.  In addition, I will be employed by the billing firm.  Best.

Navigation

[0] Message Index

[#] Next page