MSP economics are recurring, so referral fees are usually priced on MRR for a capped window — commonly 5 to 10% for the first 12 to 24 months, paid only while the client pays.
A widely cited pattern is 5 to 10% of monthly recurring revenue for the first 12 to 24 months, paid only while the referred client’s payments actually arrive. If the client churns in month three, payments stop — which keeps referrers motivated to send fits, not volume.
See how MSPs prove and pay intros through closed contracts.
Our referral fee model treats ongoing services on a first-year basis. Enter monthly MRR and it annualizes before applying the involvement band — the same math as selecting Ongoing service in the calculator.
Ongoing service, $8,000 monthly (first-year basis $96,000), warm introduction, paid on close. Range below is computed by the calculator model — not a hardcoded percentage.
$6,240 – $8,640
6.5% – 9% of first-year fees
Model the fee, then compare payout timing and put it in writing.
"What is fair on this MRR?"
Preselected for ongoing services. Change the monthly amount and involvement to match your deal.
"How do agencies compare?"
Sourced agency benchmarks and a yearly worked example.
"When does the money land?"
Month-by-month payouts, collection delays, and clawback exposure.
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.