Paying Referral Fees to Designers as a Creative Subcontractor - Should You Do It
Below is a MRR and PLR article in category Business -> subcategory Entrepreneurs.
Should You Pay Referral Fees to Designers as a Creative Subcontractor?
Summary
Are you a creative professional offering referrals to designers without any compensation? Do designers expect a cut of your project just for sending business your way? Learn how to navigate these situations and increase your income by adding more services for your valued clients.Article
Dear Kirstin,
As a faux finisher who also creates murals, my clients frequently ask me to recommend designers. I typically provide the names of professionals I trust. Should I inform the designer of these referrals?
?" Arlene, Baltimore, MD
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Hi Arlene,
Absolutely! Not only should you let the designer know you’ve referred a client, but consider requesting a referral fee or a percentage of any successful contract.
In the creative industry, it's common for designers to receive a percentage from projects involving murals or faux finishes. However, this expectation isn't always reciprocated. The person who has the client’s trust holds significant influence. If your clients trust you enough to seek recommendations, you deserve a reward for sharing that trust.
If a designer declines to offer a referral fee, don’t hesitate to collaborate with others who appreciate the value of a "hot referral." There are many professionals out there who are happy to provide compensation for advantageous leads.
Acquiring new clients is costly and time-consuming, requiring substantial effort in marketing and sales. A "hot referral" that leads to immediate business is invaluable, and the referring party should be compensated. Think of it not as a loss, but as an opportunity to gain new business. Without that referral, the business wouldn't exist.
Most successful companies across all industries earn part of their revenue through referral fees, and you should, too.
Best,
Kirstin
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