Client Referral Commission?

3 replies
Hi,

One of my client's is going to recommend his brother to me for local SEO. Of course, the client wants a monthly referral commission. I'm fine with that. Generally, what percentage of the monthly fee do you guys offer? 10-20%? His brother works in a pretty small city, so I'll only be charging about $200 or so.
#client #commission #referral
  • Profile picture of the author gtlovesellipsis
    It can vary as much as from 3% to 25% .... For larger transactions commission is obviously less..

    In your case, I'd say 10-15% should be good.
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  • Profile picture of the author Seantrepreneur
    I agree that 10-15% is enough. I would even stick to 10% if I were you. If he is happy with your services he was most likely going to refer his brother in the first place so 10% seems good enough.

    Sean
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  • Profile picture of the author PaulFL
    I pay 10% and send an occasional gift card or other physical gift (Omaha steaks are well-received) as a thank you.

    I used to be in the incentives business and developed and managed some large employee and customer incentive and reward programs. The behavioral research shows that a gift has 3x the dollar value of a cash reward. ie. or every dollar you spend in merchandise, you'd need to spend $3 in cash.

    Of course, your commission agreement is based on cash but if you want to kick things up notch, send the occasional gift. If you have the budget, gift cards branded with your logo are a nice touch as well.
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