Referrals bring you clients who trust you before the first call. A study in the Journal of Marketing found that a referred customer is on average at least 16% more valuable than a comparable customer acquired otherwise, and McKinsey measures that word of mouth is the primary factor behind 20 to 50% of purchasing decisions. Going from the odd referral to a steady flow of clients takes a few habits: knowing who refers you, agreeing on what they earn, and keeping each partner informed. This guide sets out a method that works in any trade, then what changes for real estate agents, insurance agents, financial advisors, contractors and mortgage brokers.

Key point: referrals become a steady source of clients when you know who refers you, agree in writing on what they earn, make it quick for them to pass on a contact, and tell them what happened next.

The method in five steps

  1. List who already meets your future clients. Look at your last ten clients and note who sent each one. Past clients, professionals who serve the same people and local partners tend to come up. They are your first referral partners.
  2. Agree on what you pay, in writing. A percentage of the sale, a fixed amount per signed client, or nothing for partners who cannot be paid. A referral agreement sets the basis, the rate and when the fee falls due. For ranges by sector, see the referral commission grid.
  3. Make passing on a contact take a minute. A link sent by text, a QR code shown at a meeting, a short form or an app: the partner should not have to call you or write an email.
  4. Report back on every referral. Tell the partner when you called the client, sent a quote, and closed or lost the sale, so they know what their introduction led to.
  5. Pay on time, then ask again at the right moment. Pay the commission as agreed, and ask for the next introduction when a client is happy, for example at the handover or the signature. Our guide on how to ask for referrals gives wording you can use.

Real estate agents

Your best listings come from past clients, other agents and local partners such as notaries, lawyers, mortgage brokers and builders. Past clients know neighbours who plan to sell, and other agents pass on buyers or sellers outside their area.

Between agents, the referral fee is usually a share of the agency commission: the sale price, times the commission, times the referrer's share. Our real estate referral fee calculator runs it with your figures. A referral that brings you a seller and one that brings you a buyer can pay differently: write one commission per case into the agreement.

Some US states forbid paying an unlicensed person for a referral. For those partners, use an agreement with no commission: the client is still tracked under their name.

With Referaly: referral software for real estate agents.

Insurance agents and brokers

New clients often come through someone: the estate agent handing over keys, the car dealer delivering a car, the accountant setting up a company. Existing clients are a second source, for example after you handled a claim or a renewal well.

In the EU, passing on the details of a potential client who agrees to be contacted is not insurance distribution (Insurance Distribution Directive 2016/97, article 2). If the partner presents a policy, compares offers or helps the client sign, that is regulated distribution. Outside the EU, check your regulator's rules (in the UK, the FCA). Write the partner's role into their agreement and check the fee with your insurer or network.

With Referaly: referral and introducer software for insurance agents and brokers.

Financial advisors and wealth managers

Many clients choose an adviser on the word of their accountant, their lawyer, their notary or a friend. Those professionals are your main referral partners, and referrals often flow both ways.

Your biggest clients are not always your best referrers: measure separately what a client is worth as a buyer and what their introductions are worth. When the referrer is a regulated professional, a written framework matters even more: a named referral agreement, accepted and dated, with the remuneration stated, or no commission when their rules forbid it. Check the rules of your regulator or professional body before you agree a fee.

With Referaly: referral software for wealth managers.

Contractors and builders

Your projects come from an architect, another trade, a happy client or an estate agency. A finished job is the best moment to ask: the client is pleased, and the neighbours have seen the work.

Write the commission down before the quote: the rate, what it applies to and when it is paid. A client can then refer a neighbour from their phone with a link sent by text. Our page on how much construction referral fees pay gives the calculation and the ranges we observe.

With Referaly: referral software for building contractors.

Mortgage brokers

Your files come from introducers who trust you: estate agents, notaries and accountants. Each of them wants to see where the files they sent stand and what they will earn, without calling you.

Some introducers work in a regulated profession and cannot always be paid. For them, use an agreement with no commission: the file is still tracked under their name. For the others, check the rules on introducer fees in your country, then write the fee into the agreement. Our page on how much mortgage broker referral fees pay covers the calculation and the regulations.

With Referaly: referral and introducer software for mortgage brokers.

Five habits that lose referrals

  • Saying nothing to the partner between the introduction and the sale.
  • Agreeing on a fee by phone, with nobody sure of the rate six months later.
  • Paying the commission late, or only after the partner asks for it.
  • Asking everyone for "any referrals" instead of describing the client you want.
  • Keeping referrals in a notebook or a spreadsheet nobody updates, so nobody knows who brought which client.

Tools that help

A spreadsheet is enough for three or four partners. Beyond that, referral software keeps the agreement, the leads and the commissions in one place. Referaly does this for businesses that pay referral partners a commission:

  • a referral agreement for each partner, accepted online and time stamped;
  • three ways to pass on a contact: the iOS and Android app, a web form, or entry by you;
  • tracking that the partner can see, and the commission calculated when the sale closes, then paid from the app or marked as paid;
  • free for your partners, and for you a 30-day free trial, then €49.90 excl. VAT a month.

To compare tools, read our referral software buyer's guide. To build the network itself, see how to build an effective referral network.

Frequently asked questions

How do I get more clients through referrals?

Name the people who already send you clients, agree in writing on what they earn, give them a quick way to pass on a contact, and tell them what happened to each one. Then ask for the next introduction when a client is happy.

How much should I pay for a referral?

It depends on your trade and the size of the sale. A percentage of the sale suits large sales of varying size, and a fixed amount per signed client is simpler for regular ones. Our referral commission grid gives the ranges we observe by sector.

Can I pay someone for a referral?

Paying a referral fee between businesses is common practice, set out in a written referral agreement. Regulated trades such as real estate, insurance, financial advice and mortgage broking have their own rules on who can be paid and how: check them in your country before you agree a fee. For partners who cannot be paid, an agreement with no commission still tracks the client under their name.

When is the best time to ask for a referral?

When the client has just seen the result: the keys handed over, the loan approved, the work finished, the claim paid. Ask for a specific introduction rather than for any referral.

Do I need software to manage referrals?

Not for a handful of partners. Once you have more than a few, or pay commissions, software keeps a record of who introduced whom and what you owe. Referaly starts with a 30-day free trial, and your partners use it for free.

Sources

Pages checked as of October 26, 2026. If something has changed, write to us and we will correct the page.