Referrals

[bluemarlin08]

Appreciate all the comments. There is more than has been disclosed that I might share at some point but not now.

 

[somarco]

I give away referrals and never ask for anything in return. Several agents from this forum have sent me gift cards for nice restaurants as a gesture of appreciation.

Works for me.

 

[briko3]

This is different than others have said, but I think you owe him only on the original prospect. Anything you get from there is yours....no split. I can't imagine that he would expect money from a whole referral tree from sending you one person.

 

[Franz Kafka]

The agent is aware of this referral and the commission on the sale is substantial.

You don't split on the referral of a referral. However, if the agent is "aware" of the big commission I would spend about 2% on a gift (e.g. $24K business > $480 gift). If the agent is not aware, he has no business to know about it. JMO

 

[dgoldenz]

You don't split on the referral of a referral. However, if the agent is "aware" of the big commission I would spend about 2% on a gift (e.g. $24K business > $480 gift). If the agent is not aware, he has no business to know about it. JMO

I agree with this, but if he does know, I wouldn't want to do anything to make him think twice about the arrangement if he's sending you big-money referrals.

 

[0b1kanobee]

I would give the split. It will keep the referrals coming. If you don't, he will find someone else or lose incentive. Always good to have a couple of bird dogs out there.

 

[justing]

I would ask him what his expectations are, and explain what mine are from referrals, maybe he does not expect anything, and maybe he does. If he does, I would work something out with him, but certainly not 50/50, that would be insane.

Also like someone already said if he did not know about the referral, there is no need for him to know. You got the referral because the client thinks you did a good job for him, not because your buddy referred him first.

 

[briko3]

"Also like someone already said if he did not know about the referral, there is no need for him to know. You got the referral because the client thinks you did a good job for him, not because your buddy referred him first."


Bingo! I also agree that depending on your relationship, you might be able to talk to him and he might straight up tell you he doesn't expect anything. Just tell him that since it's a possibility, you wanted to check to make sure. If he says there is no expectation, you'll definitely have to get him something nice anyway.

 

[VolAgent]

Also like someone already said if he did not know about the referral, there is no need for him to know. You got the referral because the client thinks you did a good job for him, not because your buddy referred him first.

But what if the referral ends up mentioning to your referrer that he also gave a referral to you? That is the last way you want him to find out about it. Just be up front and offer 10-20%. It is found money for the guy, and only strengthens the relationship.

 

[justing]

If I was associated with someone who felt they needed to know the details of all my business dealings with a client once they were referred to me, I think I could do without that relationship.