It’s another day, and another question from inside The Coaching Jungle Facebook group:
“What do you think is a reasonable percentage of fees for feeding of leads from a referral partner?”
First off, let me get it out of the way and say that I think it’s a good idea to compensate those who send you business.
Referrals are often pre-sold clients handed to you on a silver platter, saving you a lot of time and energy.
When you reward your referrers, they’re more-likely to remember you and send you more in the future.
Assuming you back up what you promise to do for the client and the referral isn’t just about making money, I think it’s a smart practice.
Regarding how much to pay out for referrals, there’s no one right answer, but I’ll share what I’ve done for years and has worked well for me …
I pay out 20% for referrals that I have to work with directly, like 1:1 clients, or people who join my mastermind.
I pay 50% affiliate fees for my online/DIY programs, because I’m not working with that person directly so it’s less hand-holding for me than a 1:1 client.
I’ve always gone with the 20% fee and feel like it’s fair for all involved, but it’s your business and your decision on what to pay out for yours.
Anyways, if you’re looking to grow your coaching business, my Coaching Jungle Mastermind is the place to be … and you can earn additional revenue by referring others into it as well.