Law firm referral fees

What are the rules for law firm referral fees?

Between lawyers, fee division is an ethics question first. ABA Model Rule 1.5(e) sets the conditions; your state bar’s version controls. There is no bar-set “typical percentage.”

ABA Model Rule 1.5(e)

Between lawyers, yes — under conditions. ABA Model Rule 1.5(e) permits dividing a fee only when the split is proportional to work performed or each lawyer assumes joint responsibility, the client agrees to the arrangement including each lawyer’s share in writing, and the total fee is reasonable.

Paying referral fees to non-lawyers is separately restricted in most jurisdictions. Documentation is the compliance: firms treat tracking referred matters as an ethics requirement, not an operations preference.

Why there is no “typical attorney referral fee”

The model rule does not publish a percentage. State bars adapt the rule, and the compliant split depends on work, responsibility, and written consent — not a market midpoint. Use counsel and your jurisdiction’s rules before any fee-sharing arrangement.

Worked example

Modeling example (not a legal benchmark)

Professional engagement, $50,000 fee, warm introduction, paid on close. Numbers come from the calculator’s professional-services model.

$3,250 – $4,500

6.5% – 9% of first-year fees

This is a professional-services modeling example from our published-convention calculator. It is not “the typical attorney referral fee,” not ethics guidance, and not a substitute for your state bar’s version of Rule 1.5(e).

Open calculator with professional deal type
Related tools

Related tools

After the ethics path is clear, model numbers and put compliant terms in writing.

Referral fee calculator

"Model a professional engagement"

Preselected for professional engagements. Use only after you understand your jurisdiction’s rules.

Referral fee agreement

"What belongs in writing?"

A one-page template for non-regulated business referrals — law firms still need bar-aware counsel.

Average agency referral fee

"How do other industries quote fees?"

Sourced agency benchmarks where market percentages are published.

Questions

Fair questions

Usually restricted. Most jurisdictions separately limit sharing legal fees with non-lawyers. Confirm your state bar rules before any arrangement.

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.