Enter one deal’s numbers and see when each commission dollar accrues, clears clawback, and hits the partner’s account.
A referred client pays $4,000 a month for a year. The fee is 10%, paid quarterly on collected revenue, with a 30-day collection delay and a 90-day clawback.
| Example | |
|---|---|
| Monthly revenue collected | $4,000 |
| Rate and term | 10% for 12 months |
| Cadence | Quarterly, on collected revenue |
| Delay and clawback | 30-day collection delay, 90-day clawback |
| First payout | Month 6, $2,000 |
| Total commission | $4,800 |
Example only. These figures are made up so you can see the shape of the result.
Commissions on collected revenue mean you never pay out on money that hasn’t arrived. The trade-off is that partners wait longer for their first check. A 30-day delay on quarterly payouts means the first payment arrives roughly 4 months after the introduction.
If a referred client cancels in the first 90 days, the commissions from that period are deducted from future payments rather than clawed back. This protects your margin without creating an adversarial dynamic with partners.
Monthly payouts are faster for partners but create 12 reconciliation events per year per partner. Quarterly payouts bundle three months of commissions into one check and one statement, which is operationally simpler for firms under 50 partners.
The timeline above is one deal. A firm with 20 active referral partners and overlapping deal timelines has hundreds of these running simultaneously, each at a different stage. — which is exactly the workload commission automation replaces.
The timeline shows _when_ commissions pay. These tools answer the questions that come before and after.
"What’s a fair fee?"
Decide on the rate before you model the payout schedule.
"Flat, percentage, or recurring?"
Compare five structures on the same deal. The timeline here shows what the winning structure looks like month by month.
"How do I put this in writing?"
A one-page agreement with blanks for the rate, cadence, and clawback terms you chose above.
"Is this worth it?"
Estimate how much referral revenue you’re leaking without a system in place.
Payment timing conventions from Sakas & Company and Elinkages. The collected-revenue trigger is consistent with Introzy’s fee engine. See the referral fee agreement template for putting these terms in writing.
This tool is for general informational purposes only and does not constitute financial, legal, or tax advice. Results are estimates based on the inputs you provide and published industry conventions. Consult a qualified professional before making compensation decisions.