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Web Design and Development Referral Rates?

What is a fair referral rate to give back to someone sending you customers?

     
5:48 pm on Feb 11, 2012 (gmt 0)

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What is a fair referral rate to give back to someone sending you customers? What would be considered industry standard? What about the context of the referral (initial work versus long term, etc)?

- John
7:25 pm on Feb 11, 2012 (gmt 0)

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John, hate to say, but it is rather subjective. When I get referrals from a customer and it is a large job, i.e. a new site or major overhaul, I usually give them one year's free web hosting, assuming I host their site. Otherwise, I generally give $50-$150, again depending on the job. A third option I have done is send them a gift card to a chain restaurant which is safe to assume is in their area: Olive Garden, TGI Friday's, etc.

Marshall
7:41 pm on Feb 11, 2012 (gmt 0)

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Okay I'm thinking more along the lines of...from $x - $y z%, greater than $x up to $y then z%, etc.

- John
5:41 pm on Feb 21, 2012 (gmt 0)

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I own an SEO company and give out a flat 20% (recurring monthly commission) referral fee to anyone who refers me new clients for both SEO and online reputation management.

I expect the same from the coding companies that I use when I send them my clients to get website coding work done.

20% recurring monthly is a fair number. 20% is also a fair number if it's a one-time project.
3:42 am on Feb 22, 2012 (gmt 0)

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Thank you BaseballGuy, that is the sort of input that helps me greatly by giving me a general idea of what other people are doing.

- John
3:53 am on Feb 22, 2012 (gmt 0)

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Yes, however....try to negotiate better if possible. If I could get away with a 10% commission, I would.

20% on a few thousand dollars every month adds up really quickly.
4:04 am on Feb 22, 2012 (gmt 0)

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Someone recently shared with me that at certain points different amounts of money exchange. In example if a job is less than say 500 you would accept everything up front or just not do the job. As the price rises you accept smaller/more increments over time subjective to the price of the overall project. There are going to be people who have the merit to be able to give you repeat business referrals and some people who just so happen to be in the right place at the right time though on their own merit. How would you deal with competent merit versus one-time-lucky-person lack of merit?

- John
4:25 am on Feb 29, 2012 (gmt 0)

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I paid 20% or I would do work on their web site(s) at no charge to compensate.
 

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