For a broker-to-broker client referral, 25% of the receiving side’s gross commission is a common starting point. Calculate from the brokerage commission, not the property price, and confirm licensing, disclosure, and state-law requirements before the introduction.
The Consumer Federation of America reports that 25% of the commission collected by the receiving agent is typical, with most fees falling between 20% and 35%. The rate is negotiated, not fixed. On a $10,000 receiving-side commission, a 25% referral fee is $2,500.
That is different from a consumer home-sale commission. The referrer is not taking 25% of the sale price; one brokerage pays another from the commission earned after a referred transaction closes. For the general definition and payment triggers, read what a referral commission is.
RESPA generally permits cooperative and referral fees between real estate licensees. The National Association of REALTORS® explains that the exception does not extend to paying mortgage brokers or other settlement-service providers merely for referrals. State licensing rules and required disclosures still apply.
Put the brokerages, client, percentage, commission basis, payment trigger, and expiration in writing before the handoff. For non-real-estate ranges, use the referral fee percentage guide.
Professional engagement, $10,000 fee, warm introduction, paid on close. This comparison uses the generic calculator model on the brokerage fee — never the property price.
$650 – $900
6.5% – 9% of first-year fees
The range below is the calculator’s general professional-services range, not the real-estate convention above. A negotiated 25% broker referral on the same $10,000 receiving-side commission would be $2,500. Confirm the permitted structure with your broker and counsel.
Use the vertical rule first, then compare general benchmarks and document the deal.
"What exactly are we paying for?"
Definition, calculation methods, payment triggers, duration, and exclusions.
"How does real estate differ?"
General professional-services ranges and the regulated-industry boundary.
"What belongs in writing?"
A one-page starting point for rate, basis, trigger, and clawback terms; adapt it with real-estate counsel.
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.