Typical agent to agent referrals are at 20-25% of the net earned commissions. But as in all business, it is up to an agreement at the time the stage is set. Referral from a friend or a client, is a measure of goodwill between the parties. If the referring party is happy with prior service, why expect a reward for a referreal which only provides the referred party with recommended good service? So, any gift by the agent is a measure of goodwill. Financial expectations and demands for referral better be declined. These often end in disagreement and discontent. By the way, the IRS recognises only a $25.00 as an allowed business gift!! I know, since I got audited and hit on these referrals.
Dec 22, 2009