Price of a sales referral

[KingsandQueens]

Hi,


Can anyone give me advice on what price I should pay for a business referral or even if I should?


Thanks,

K&Q

[Wendy.Rule]

It would be expected that an business referral gets a financial recognition, but it depends on how it arose and what business you are in. If it was an informal recommendation then there is no need to give recompense but it will stop all future leads :). If you decide to give the referrer something, then the amount varies, mostly in what it is worth to you. If you did not get this lead from someone else, could you have easily got it on your own?

We are spending a lot of time working through this minefield at the moment - trying to get the right balance between what is reasonable for the referrer and will incentivise them in the future to provide many leads and what we are willing to pay.

Good luck, this is not simple as it initially appears.

[NCA]

Usually we offer 5-10% of initial contract net profit. It really depends on what the referer has done to get us the lead and how influential they were in helping us close the deal. In my business its not small money. The last time the referer netted hmself over £5K.

[KingsandQueens]

Ok so the way to go seems to be paying only for the end results, not for the qualified lead.

Thanks,

K&Q