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Referral fee

Hi everyone. I have recently gotten a couple of referrals from a
store that carries my work. The first person they sent me with no
strings attached. The second referral came with a request for a
referral fee - a percentage of the sale. I have no idea what that fee
should be. Any suggestions, advice would be appreciated!

Referral fees are generally 10%. I work at a jewelry store that has
been in business 60 years and we have atleast one referral from
another store a week. These salespersons expect to get their
commission and you better believe that if you don’t give them their
entitlement you will get no more referrals. This is also called a
birddog fee and its just good fair old fashion business Scott Isaacs
Berry’s Jewelry Co. Cad/cam designs

Stephanie, This is a tough question to answer as there is no industry
standard for such a fee. We usually send a gift certificate for a
restaurant in our area to someone who regularly refers customers. I
think you should probably ask the store first what they think you
should be paying them. That way you don’t offer more than they would
have asked for and if it seems too high you can always negotiate it

Daniel R. Spirer, G.G.
Spirer Somes Jewelers
1794 Massachusetts Ave
Cambridge, MA 02140

Hi Stephanie:

When I did commissions for custom instalations, I often got referrals
to private clients from interior decorators. It was traditional to
kick back a 14% (of gross) commission to the agent. I don’t know if
thats similar in other arts.

David L. Huffman