Referral Fee Calculator
Work out a fair referral fee on any deal in seconds. Enter the deal value, the commission rate paid on the deal, and the share of that commission that goes to the referrer.
Works for the full range, from a $5k client referral up to a $500k introduction fee on a $50M property deal. Brokers, agents, accountants, lawyers, advisers, site finders, JV introducers.
This is general information, not legal or financial advice.
This calculator does arithmetic on the numbers you enter. It is an illustration only - not a benchmark, not a valuation, and not a recommendation about what you should charge or accept. Referral and commission arrangements can be regulated depending on your industry and your state. Get your own professional advice before acting on anything here.
- Commission rate = what you earn on the deal. E.g. 2% on a property sale, or a 1.5% site introduction fee on a $20M site.
- Referral rate = the share of your commission that goes to whoever sent the deal. E.g. 20% of your commission.
Sale price, loan amount, contract size, or equity raised.
What you earn on the deal. 2% in property, 10% in broking, 20-30% in agency.
Share of your commission to the referrer. 20% is most common in property and broking. 25-50% for pre-qualified site finder introductions.
Estimates only, based on the figures you enter. General information, not legal, financial or tax advice. Referral fees are regulated in some professions - check the rules that apply to yours.
Want the full breakdown emailed to you?
We will send your result and how to put this referral in place inside Socii - the built-in agreement template and the tracking that makes sure you actually get paid. Socii is a private, members-only network, so our team will also review your details for membership.
How to use this calculator
- 1. Enter the deal value - the transaction the deal sits on (sale price, loan amount, contract size, or equity raised).
- 2. Enter your commission rate - the percentage you earn on the deal as the originator. For success-fee deals use the success-fee %.
- 3. Pick the referral rate - the share of your commission that goes to the referrer. The result updates as you type.
How referral fees actually work
A referral fee is a share of the commission earned on a deal, paid to whoever introduced the deal. It is not a percentage of the deal value itself, it is a percentage of what the originator earns from the deal.
On a $1,000,000 property sale at a 2% commission, the originator earns $20,000. A 20% referral fee on that is $4,000. The originator keeps $16,000. The same logic applies to mortgage broking, financial advice, accounting referrals, legal work passed across firms, and most B2B service introductions.
The number that sits in the 20% to 25% range is so common because it covers the referrer's time without making the originator feel the work isn't worth doing. Higher percentages (30%+) usually imply the referrer also helped close the deal, not just opened the door.
For bigger deals, the structure changes
Site introductions and JV introductions are usually paid as a fixed dollar fee or a % of the underlying transaction, not a slice of a commission.
- Site introduction fees: 1% to 2% of land value, or flat $50k to $500k on $5M to $50M sites. Paid on unconditional contract or settlement. See the site introduction fee calculator.
- JV / equity partner introductions: Often paid as a profit-share slice or a carry above hurdle. See the JV profit share calculator.
Three things to document
- What counts as a referral. Is it any warm introduction, or only ones that convert? For property deals, is it an introduction to the site, or to a developer who actually transacts? Be specific.
- When the fee is paid. On settlement, on first invoice paid, on DA approval, or on capital drawn down. Tie it to cleared funds, not the signing of paperwork.
- Clawback. What happens if the deal falls over inside 90 days. Most agreements reverse the referral fee in that window.
At Socii, every referral between members is tracked and paid through a written agreement, so there is no chasing, no awkwardness, and no disputes. See how it works.
Frequently asked
What is a fair referral fee?
Across professional services, referral fees typically run 10% to 35% of the commission earned on the deal. Property, mortgage broking, and financial advice commonly sit at 20% to 25%. Legal services are often 10% to 15% due to regulator rules. For site introductions to property developers, fees commonly run 1% to 2% of the land value, or a flat $50k to $500k on $5M to $50M sites.
Is the referral fee a percentage of the deal value or the commission?
Almost always a percentage of the commission earned on the deal, not the deal value itself. So on a $1,000,000 property sale at a 2% commission, the commission pool is $20,000. A 20% referral fee from that pool is $4,000. For large site introductions, the structure is often flipped: the introducer is paid directly out of the deal proceeds as a flat fee or a % of the underlying transaction, not a slice of a commission.
Are referral fees legal?
Yes, in most professions and jurisdictions, but they must be disclosed to the client and documented in a written agreement. Some regulated professions have specific rules. Always check the rules for your profession and state.
Should referral fees be one-off or ongoing?
Both are common. A one-off referral fee is paid on the initial deal. An ongoing or trail referral fee is paid on each renewal, repeat deal, or related work the referred client generates. Trail arrangements are common in mortgage broking, financial planning, and insurance. In property and capital, follow-on deals from the same introducer often pay a reduced second-deal fee.
Do I need a written referral agreement?
Yes. Verbal arrangements are how disputes happen, and large-deal disputes are expensive. A simple written agreement covering the commission base, the referral percentage, what counts as a qualifying referral, payment timing, and any clawback for cancelled deals protects both parties.
Built by Socii Book Pty Ltd (ACN 695 597 141), a private deals club for dealmakers. The numbers above are the same math we run inside the club.
People also ask
What is a fair referral fee percentage?
For Australian professional services the typical band is 10% to 25% of the first-year fees referred. Real estate agents commonly pay 20% to 30% of commission to a referrer. Mortgage brokers pay 0.2% to 0.5% of the loan amount. Property site introducers receive 1% to 2% of land value or a flat $50k to $500k. The right number depends on how much work the referrer did and how the relationship is structured.
Are referral fees legal in Australia?
Yes, with industry-specific rules. Real estate and mortgage broking referral fees must be disclosed to the client in writing. Financial advice referrals trigger AFSL obligations. Legal practitioners can pay and receive referral fees but must follow their state Legal Practice Act disclosure rules. Most B2B referral fees outside regulated industries are unrestricted, provided they are documented and tax-treated correctly.
How do you ask for a referral fee without sounding awkward?
Lead with the structure, not the money. "When I introduce a deal, I work to a 20% referral fee on first-year fees - is that something you can work with?" frames it as how you operate, not as a special ask. Document the agreement before the introduction. Most professionals expect it.
Do referral fees need to be in writing?
Practically yes, even though oral contracts are legally binding. The party who profits has every incentive to deny verbal terms. A one-paragraph email exchange with explicit acceptance is the minimum. A signed two-page introducer agreement is the safe path. Socii documents every introduction with an embedded agreement step so the paper trail is automatic.
Is GST charged on referral fees in Australia?
Yes, if the receiving party is GST-registered. The fee carries 10% GST on top of the headline amount. The paying party claims it back as input tax credit if the underlying business is GST-taxable. Most professional referrers invoice through a sole trader ABN or company structure that handles GST automatically.
Related free tools
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Project the annual and 5-year revenue your professional referral network can produce.
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