How much should I pay to Referral Partners?


Key Principles/Ideas:

1. What is your CAC (Cost of Customer Acquisition)? That should be a guide to what you pay to Referral Partners.

2. It’s okay to pay a little more IF the Referral Partner helps you to reduce conversion TIME (time to close) and has a markedly higher conversion RATE.

3. Make sure it’s clear with your partner as to what is a “Referral.” Are these high conversion conversations, or are they just giving you a list of people they know?