How much for referrals?

[Gobbledegeek]

Do any of you guys offer web design referrals? If so, what sort of scheme and how much? I have been approached by a client who says he can pass on a steady flow of new clients and would like to negotiate a referral fee/scheme.

I have no idea what would be a fair price or whether one offers a flat fee per sale or a percentage commission. Another option would be to offer a period of free hosting per sale a percentage discount on any further services he orders.

Your thought and suggestions would be helpful, thanks.

 

[meghatronic]

Keep it simple if you want paid referrals. It depends how well you know your clients, how much they pay you and how many profitable referrals they give you. A friend of mine did voucher offers for popular stores.

 

[rewindurmind]

It all depends what the visitor (referral) actually does, usually one would offer a percentage of commission.

 

[blade007]

in business terms it would be the lowest percentage possible - but that winds people up - although it's better for you.

If a site was worth say £700, then he's going to want about £100 for passing that work on ... after all, you don't have to look or advertise for that work and you are using his client clique, therefore cutting your costs.

so I'd say about 15% seems about right, maybe 10% if you are really lucky.

 

[Gobbledegeek]

Thanks for the replies guys. Having done some further research it appears that the majority offer a percentage of around 15% but I am wary of going down this road for fear of the hard sell tactic in order to boost commission. Coercing potential clients into paying for more than the need or can afford, would only damage our reputation in the long term.

I'm thinking more along the lines of a token flat fee on a sliding scale, in addition to offering services such as 1 month of free hosting for instance or a discount on their next product or service.

I'm stiil looking for the best solution so any suggestions are welcome.