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It is customary in ALL forms of business that if you want to grow your own business then the best way is to ask other successful business owners to refer new clients to you. In exchange for this you should always offer a 20% referral fee back to them as a "thank you". This will also give them more incentive to get you even more future business, and then it snowballs from there and new referrals just keep flooding in. Soon your small business flourishes and grows! For example isn't it worth paying someone $20 for you to make $80 that you wouldn't otherwise have? Or even to pay someone $200 for putting $800 into your own pocket that you otherwise would have been without?

Those contractors out there who have not figured out how important it is to pay these 20% commissions or referral fees usually go out of business or starve very quickly because all the other contractors or service providers out there ARE smart enough to offer to pay these fees to get all the business in their community. Get on board or you'll be out of work soon guys!

And should you ever get business in due to a business referral and fail to pay what you owe, watch out guys, it always comes back to bite you! What goes around comes around and word gets out in the community and soon NO ONE will use you, not the referring person and not his or her clients, ever again. This is the kiss of death in the small business world or for independent contractors. Remember the phrase "pay a little to get a lot" and you should be good!

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Q: Designers typical referral fee from contractors?
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