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What Is An Acceptible Finders Fee For Referrals
Posted 27 January 2008 - 08:03 AM
I'm wondering if any SEO provider out there pays a finders fee to their referral source? I've been receiving leads from a woman who owns a website design company and she wants me to pay her 20% for all jobs (including additional jobs that evolve from the same client). I feel that 20% is quite high and I would then have to charge the clients 20% more in order to make any money on the deal.
Has anyone else run in to this type of situation? How do you handle referral fees - if at all?
Patti Fousek, aka: SEO Gal
Posted 27 January 2008 - 09:40 AM
That seems kind of steep. In fact, I've never had anyone charge me a fee for referring a client to me or vice versa. However, I did notice on your site (providing it is the one in your signature link) that you have an offer that states, "Refer a paid client to us and receive 20% off the service of your choice." Maybe this designer feels she is entitled to a similar bonus. I'm not saying it's right, but some people think this way.
Posted 27 January 2008 - 09:59 AM
Posted 27 January 2008 - 11:22 AM
Yep, if the leads were higher quality, it might be worth 20%, but you've already figured out it isn't. So figure out what amount you could offer and offer her that. She'll either keep referring or she won't.
Posted 30 January 2008 - 02:50 PM
FYI such colleagues that offer the bigger referrals in my case are Usability Experts, Information Architects, etc.
Posted 31 January 2008 - 09:04 AM
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