Referral fee for refering buyers

[Wave-Particle]

What do you think about paying a referral fee to someone who has referred a buyer to you who ends up buying your domain. Terms of the agreement could be something like this...

- In order to qualify for a referral fee a buyer has to confirm that they were referred by the individual upon first contact.

- The referral agreement should expire after a certain amount of time has passed.

- Depending on the sale amount, the referral fee could be fixed or a percentage.

What do you think a fair percentage would be that would motivate the referrer to spread the word to their contacts on a sale that was greater than 100k? I'm think about doing this with one of my premium domains either in combination with a broker, or without a broker and using an escrow service.

 

[Venga]

In real estate 3-6 percent seem to be common. Sedo has a referral program offering 25% of Sedo's commission, which normally comes down to 2.5 percent of the sales price. It´s probably more unusual to sell a domain name for >$100K than a property, so you may want to increase that, especially the less you are sure that name is so rare and attractive that it will fetch >100K easily.

 

[Wave-Particle]

I did not know Sedo does this, but it makes sense. Thanks for the info. I will check out how they setup this type of agreement.