Fee structure comparison

Which referral fee structure fits your deals?

Enter your deal and get a recommendation, plus all five structures side by side so you can see what the pick costs versus the alternatives.

Compare five fee structures on your deal

Deal value (annual)
$10k$500k
Rates (8% flat, 10% first-year, 7% recurring, tiered, step-down) reflect published convention. Adjust the deal to see how each scales.
Gross margin
%
Expected client lifetime
Our pick for this deal
Step-down

Clients stay about two years. Step-down pays well in year one, rewards retention in year two, then stops. Payouts on this deal range from $4,800 (flat fee) to $9,000 (step-down).

Flat fee

One-time payment of 8% of first-year value

Lowest cost
Total payout
$4,800
Cost / lifetime rev
4.0%
Margin after fee
51.0%

Percentage of first year

10% of first-year collected revenue

Total payout
$6,000
Cost / lifetime rev
5.0%
Margin after fee
50.0%

Recurring percentage

7% of collected revenue for the client lifetime

Total payout
$8,400
Cost / lifetime rev
7.0%
Margin after fee
48.0%

Tiered

10% on first $50k, 7% next $50k, 5% above $100k

Total payout
$5,700
Cost / lifetime rev
4.8%
Margin after fee
50.3%

Step-down

10% year one, 5% year two, 0% after

Recommended
Total payout
$9,000
Cost / lifetime rev
7.5%
Margin after fee
47.5%
Pick the structure. We’ll track payouts to the invoice.
How to choose

Which structure fits your business?

Flat fees

Simplest to administer. Best when deals are similar in size and you want predictable partner costs. Risk: overpays on small deals, underpays on large ones.

First-year percentage

The convention for professional services. Caps your exposure at one year of revenue and aligns the partner’s incentive with deal size. The referral fee calculator shows where your deal falls in the published ranges.

Recurring percentage

Rewards partners for sending clients who stay. Best for MSPs and SaaS where monthly revenue continues. Higher total payout, but spread over time and only on cash collected.

Tiered and step-down

Tiered rates reward larger deals; step-downs reward longer retention without paying forever. More complex to administer manually, which is why automated fee plans exist.

Related tools

Where this fits in the toolkit

Each tool answers a different question. Start with the one that matches where you are right now.

Referral fee calculator

"What’s a fair fee for this deal?"

Four inputs, a defensible dollar range. Start here if you’re negotiating a specific referral.

Commission timeline

"When do I actually pay?"

Month-by-month view of accruals, payouts, and clawback exposure. Use after you’ve picked a structure.

Agreement template

"What goes in the contract?"

A one-page template with fill-in brackets. Use the fee and structure you chose above.

Partner earnings calculator

"What does this look like from the partner’s side?"

Show partners projected annual earnings before they commit.

Sources

Structure conventions from Sakas & Company, Elinkages, Consulting Success, and Promethean Research. See the referral fee benchmarks for verified ranges by industry.

Which structure pays the most?

Recurring percentage over a long client lifetime. But total payout isn’t the only consideration. A structure that pays more also costs more, and the best choice balances partner motivation with your margin.

Can I mix structures?

Yes. Many firms use a flat fee for small introductions and a percentage for larger deals, or a percentage that steps down after year one. The fee plan builder supports all of these.

What if my deals vary a lot in size?

Percentage-based structures handle variance better than flat fees. Tiered rates specifically address this by adjusting the rate as deal size grows.

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.