Agency referral fees

What is the average referral fee for agencies?

For a straightforward introduction, agencies commonly pay 5 to 10% of collected first-year revenue. Formal partner programs that help sell pay more. Here are the sourced benchmarks, then a calculator-backed example.

Published agency benchmarks

For a simple introduction, agency advisor Karl Sakas reports 5 to 10% of collected revenue as the norm, with 10% most common and 5% right behind. Twelve-month caps are standard, and step-down structures (10% year one, 5% year two, then zero) reward referrals that become long clients without paying forever.

Formal partner programs pay more because partners do more. Promethean Research reviewed 556 agency partner programs and found that among the 147 publishing a referral commission, the median was 20%, with the middle half between 17.5 and 30%. Duration often beats rate: a lower percent paid longer can out-earn a one-time spike.

How agencies run the full loop is on our agencies page.

What moves the fee

Involvement, deal size, recurrence, and payment timing all shift the range. A passed name sits at the low end; advocacy through the close sits at the high end. Our calculator turns those inputs into a defensible band with the math shown.

Worked example

Example: $50k yearly agency fees, warm intro

Ongoing service, $50,000 yearly fees, warm introduction, paid on close. Range below is computed by the same model as the calculator — not a hardcoded percentage.

$3,250 – $4,500

6.5% – 9% of first-year fees

Open calculator with agency deal type
Related tools

Model it, then put it in writing

Use the calculator for your numbers, then lock the terms.

Referral fee calculator

"What should we pay on this deal?"

Four inputs, a defensible range based on published convention. Preselected for ongoing services.

MSP referral commission

"How do recurring MSPs price this?"

MRR-style structures and a worked monthly example.

Referral fee agreement

"What goes in the contract?"

A free one-page template with brackets for rate, trigger, and clawback.

Questions

Fair questions

It is a common midpoint for a warm intro on first-year collected revenue, not a rule. Larger deals, lighter involvement, or partner programs that co-sell will move the number.

This page is for general informational purposes only and does not constitute financial, legal, or tax advice. Example ranges come from the same published-convention model as our referral fee calculator. Consult a qualified professional before making compensation decisions. Open the calculator.