Referral fee calculator

Referral fee calculator

Four inputs, a defensible range. The math is published at the bottom of the page.

Deal type
Service fees
$50,000
$1k$10M
Connector involvement
Fee paid on
Paying on the closed deal is the convention — and the recommended default.
Fair referral fee
$5,000

A warm intro on a $50,000 ongoing service contract: convention says 10% of first-year fees, paid on close.

Start free

Track these referrals and pay this fee automatically.

“We love it. The platform allows us to properly vet and manage our providers, ensuring our clients receive the highest quality services available.”
Catalyst 501RJ Muto and Laura Lian Williams · Co-Founders, Catalyst 501

Keep this fee estimate.

Handy when you put it in writing with a partner.

We may follow up with relevant guidance about referral monetization. One-click unsubscribe. See our Privacy Policy and Terms of Service.

Methodology

Where these numbers come from

The base ranges are published convention, not our opinion.

Base ranges by deal type

Ongoing services commonly run 10% of first-year fees. One-time projects commonly run 15% of project price. Professional engagements commonly run 10–15% of ongoing revenue. Software subscriptions commonly run 15–30% of year-one revenue.

Deal size

Percentages decline as deals grow. A $2M contract does not take ten times the effort of a $200k one, and referral fees follow effort more than value.

Involvement and timing

A passed name earns the low end of the range; advocacy through the close earns the top. This tracks how referral partnerships actually price: common tiers run around 10% for a warm lead and 20% for a fully qualified opportunity, rising further when the referrer works the deal. Earlier payment triggers are discounted — paying before the deal closes transfers risk to the payer.

The first-year cap

Referral fees are conventionally capped at first-year revenue. Retention beyond year one reflects delivery, not the introduction.

One tax practicality: in the US, referral payments of $600 or more to an individual in a year generally require a 1099-NEC.

Sources

Base ranges are recommended asks by offering type, informed by published market conventions from Referaly, Sakas & Company, ReferralHero, Referral Rock, RefGrow, SaaStr, and the Journal of Accountancy. The 30% close-rate assumption in the payment-trigger adjustment is consistent with our Referral ROI calculator.

Next steps

Agency referral fees → What agencies typically pay for a warm intro, with sources.Industry benchmarks hub → Agencies, consultants, MSPs, and law firms in one sourced post.MSP commission structures → How MSPs price referral fees on MRR, with a worked example.MSP referral fees guide → Client, partner, and white-label tiers in depth.Law firm referral fee rules → ABA Model Rule 1.5(e) conditions before you model a number.Real estate brokerage referral fees → Receiving-side commission math and the RESPA boundary.Compare structures → See how flat, percentage, recurring, and tiered options stack up on this deal.Model the payout schedule → See when commissions accrue, when they pay out, and clawback exposure month by month.Put it in writing → A free one-page agreement template with brackets for the numbers you just chose.

In some fields — legal, accounting, real estate, healthcare, insurance, securities — referral fees are restricted, capped, or require written disclosure. State bar rules, AICPA ethics rules, RESPA, and the Anti-Kickback Statute are the usual culprits. For broker-to-broker math and the RESPA boundary, read the real estate referral fee guide. This tool models market conventions, not compliance. Talk to counsel.

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.