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Thread: How much would you pay or do you expect for referral fees?

  1. #41
    Post Impressionist Array vangogh's Avatar
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    No worries. Maybe how we answered originally help you think this through to where you have a more solid grasp on a business model. I do think 10-15 percent seems reasonable for what you're now thinking. One question you may want to ask is where are you adding value to the process. Are you more helping the client find speakers of helping speakers find gigs. Whoever you're helping more is really who should be paying your costs.
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  3. #42
    Get In Where You Fit In Array Harold Mansfield's Avatar
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    By far the client is served more. I'm hoping to capitolize on a few short comings that my clients keep reminding me of when they look for services outside of what I offer, and I'm tired of sending people out into the world to fend for themselves.

  4. #43
    Post Impressionist Array vangogh's Avatar
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    Makes sense to have the client pay your fee then. Thought that's where you were adding more value, but figured I would ask.
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  5. #44
    Get In Where You Fit In Array Harold Mansfield's Avatar
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    Quote Originally Posted by vangogh View Post
    Makes sense to have the client pay your fee then. Thought that's where you were adding more value, but figured I would ask.
    Yeah. That's how I've always seen it done. I guess the old limo driver in me had me confusing the two models. As a limo driver we just paid straight cash kickbacks. It's actually extortion on the street level.
    But when it's company doing business with another company, the other booking company usually takes theirs off the top.
    And that's the model I'm most interested in after seeing that example.

    As a local limo company in Vegas, there are a lot of companies to choose from and tourist don't know one from another, but a site like Orbitz can offer all of the travel services that you need in one place and thereby attracts more eyes. Plus they have credibility. Even if people understand that they are an affiliate, they still trust that they only do business or offer reputable services.

    So the partnership makes sense.
    Last edited by Harold Mansfield; 05-04-2013 at 12:40 AM. Reason: misppelled "sense".

  6. #45
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    I think the fees businesses pay do vary. I am looking into a referral system and we will be looking at 75 flat fee. That comes down to what we do as being something that requires no selling on the refers part. We are looking at offering credits too. The credits will be worth a lot more than the referral fee. I think if you doing something like this its best to keep it simple.

    Sean

  7. #46
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    It's all in the relationship. Who it is, how often they refer you, and how big the deals are. I pay fees all the time and I get fees, it's networking at it's basic level. Share the wealth, we all gotta make a living. I float from 3% to 20% depending on the margins and the relationship status. Bigger deals tend to have smaller margins so weigh it out and find what you are comfortable with and will it be enough to entice them to refer you again and again? Only you can determine the number.

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