Referral commission grid
The ranges below are the ones we observe on Referaly, sector by sector. They are a starting point, not a truth: your right rate depends on your margin, not on the market average.
| Sector | Observed range |
|---|---|
| Real estate, seller introduction | 10 to 25 % of the agency fee |
| Real estate, buyer introduction | 5 to 15 % of the total fee |
| Mortgage and insurance broking | 20 to 40 % of the commission received |
| Wealth management | 10 to 20 % of entry fees, or a share of management fees |
| Consulting and business services | 5 to 15 % of the engagement value |
| Construction and renovation | 3 to 10 % of the project value |
| Architecture and interior design | 10 to 15 % of the fee |
| Software and subscriptions | 20 to 30 % of the first year, or a flat fee per signed client |
The method, in three questions
1. What is your margin on a typical deal? The commission comes out of what you keep, not what you invoice.
2. When do you pay? Signature, full payment, or the end of the cooling off period. That clause causes the most disputes.
3. What happens in year two? A commission that only rewards the first deal stops protecting your book after a year.
What this commission actually buys: tracking about 10,000 customers for almost three years, researchers measured that a referred customer is on average at least 16 % more valuable than a comparable customer acquired otherwise (Schmitt, Skiera and Van den Bulte, Journal of Marketing, 2011). And a reward does work: it increases the likelihood that a customer refers, especially toward weak ties (Ryu and Feick, Journal of Marketing, 2007).