What is an appropriate fee for someone that referred buyers to you? Basically, the person got a phone call from someone looking for a horse, knew you had a horse that fit the criteria and referred the buyers to you.
depends on the price of the horse, but usually 500
Really? $500 for making 2 phone calls? Horse sold for less than $10K.
[QUOTE=HorseShopping;6519376]
Really? $500 for making 2 phone calls? Horse sold for less than $10K.[/QUOTE]
Why did you ask if you didn’t want people to tell you what they get? You obviously have in mind what you think is fair so do what you are comfortable with. It’s less important of you do not count on selling horses/referrals for your livelihood.
Of course, I want to hear what people think. I was just surprised and was expressing that surprise. I guess I wasn’t expecting 2/3 of what would be full commission (10%.) Full commission is usually earned by marketing the horse, showing the horse to prospective buyers, etc. It is a darn good deal to get 2/3 of that amount by spending 15 minutes on the phone.
I am not a full-time seller of horses and have never paid a referral fee - that is why I asked. I have a long-standing relationship with this person and they did not ask for a fee. However, I do intend to pay them something. Just trying to figure out what is fair to everyone.
Edited to add: If my horse had sold for $15-25K, I would gladly pony up $500 for a referral fee. horsechick did say it depended on the sale price so that is why I clarified that the price was less than $10K. Just wondering if $500 is still appropriate since that is 2/3 of a full commission amount.
I usually give a referral fee of $100 for my horses under $5000. $5k-$10k maybe about 5%? Just taking a guess at what I think would sound fair.
ETA: I posted after your comment and I agree about the 10% full commission thing. I was surprised at their $500 response also and thinking that a 10% commission involved a lot more work then a few phone calls.
Depends on the price of the horse. You should work that out prior to any other conversations with potential buyers. Be honest and keep lines of communication open.
Cheers
[QUOTE=HyperionStudLLC;6519652]
Depends on the price of the horse. You should work that out prior to any other conversations with potential buyers. Be honest and keep lines of communication open.
Cheers[/QUOTE]
Again, this person has not asked for a fee but I think something is appropriate. This was all very sudden and out of the blue. So, for a horse that sold for 4 figures (more than $5K, less than $10K), what would you consider appropriate?
[QUOTE=HorseShopping;6519662]
Again, this person has not asked for a fee but I think something is appropriate. This was all very sudden and out of the blue. So, for a horse that sold for 4 figures (more than $5K, less than $10K), what would you consider appropriate?[/QUOTE]
IMO If its more of a “courtesy thank you” then I would offer to give them $150.00 for their referral, but you really should decide for yourself what you think is fair. Every case is different and I don’t know your relationship with this person.
Cheers
I never ask for or expect any fee when I refer people to a horse-fo-sale. I expect your friend is the same. I think HyperionStud’s suggestion is a good one - a “thank-you”, not a “fee for a contracted service”.
I’ve always paid a “bird dog” fee of $150 up to $5000, $250 up to $10,000, and $500 over $10,000.
Ditto. However, the person doing the referral may expect more. This is a hazy area and takes tact to work through.
Like Hyperion said, it should have been discussed before selling the horse. However, some of us do this for a business, and if we send you OUR client, we expect a commission. Otherwise, we won’t send you a client. I believe 5% for just a referral, and 10% for anything more then just handing off a name and #. Do you not want that person referring horse buyers to you in the future?
Tim
Say your horse sold for $7,500 then I would charge $350 for a referral.
Well according to the majority vote here
Commission question - what is owing in this case?
you don’t owe a penny 
Even IF
- person making the phone call is a professional
- horse sells for 25K
- you had marketed the horse without interest for sufficient time to have substantially reduced the asking price
:rolleyes:
Disappointing how few OP’s update on controversial topics :winkgrin:
If I got a call from agent A, and they said they were sending me a client (that I didn’t already know about). If the client purchased the horse they would get $750. During that call I would make sure they were not getting paid by the client too.
If I got a call from a perspective client (that I didn’t already know about) and they purchased the horse, and they said they heard of me through Agent A. I would pay Agent A 5% or $375.
All different scenarios exist, but the seller must know what their exposure is prior to selling the horse. It is paramount that the agent not be hired by said client, and isn’t getting paid for such services. If that is the case, I will not pay a commission. It is illegal to double dip in many states, and it will become the norm everywhere.
Tim
if the referrring person is a pro, I would expect professional behaviour and that is either asking in advance if I am approached can I refer to you ? And/or in case the person has someone litereally standing on his doorsteps I would expect the pro to call and ask me if this is o.k. and telling me whom he/she is sending. If that kind of professional behaviour is missing - well I am insecure about a professional payment. It is also different if the referring person is doing more than a phonecall… say makes video footage etc.
And coming back to one of the posters: how should OP discuss that in advance if the person just send someone over and OP never expected business coming from that side ?
Settle the referral fee in advance if you want compensated. I think it is pretty common to refer for free if you don’t have the right horse in your barn…that’s just good customer service to me. It’s not like I am losing a sale or anything. “I don’t have anything like that right now, you should call so-and-so…, she’s got a nice [fill in the blank] I believe is for sale” is just common professional courtesy. People really expect to be paid for that now? Geez. “Let me call so-and-so and see if she’s got anything” is not exactly compensation-worthy either IMO.
[QUOTE=fordtraktor;6520371]
Settle the referral fee in advance if you want compensated. I think it is pretty common to refer for free if you don’t have the right horse in your barn…that’s just good customer service to me. It’s not like I am losing a sale or anything. “I don’t have anything like that right now, you should call so-and-so…, she’s got a nice [fill in the blank] I believe is for sale” is just common professional courtesy. People really expect to be paid for that now? Geez. “Let me call so-and-so and see if she’s got anything” is not exactly compensation-worthy either IMO.[/QUOTE]
I agree. I had a woman approach me at a show and ask if our horse was for sale… he had been advertised so this was no secret. She had clients with her. After the clients looked at the horse at the show ( while we were showing) and once more at home, the woman called me and said she expected a finder’s fee if they purchased the horse. I had never had any contact with this woman previously and the potential buyers were her clients. Actually think that is considered dual agency in the TB world and has come to be highly frowned upon. So IMHO unless you have a business relationship with the “finder” I think any fee is optional. THis is one of the situations that leaves a very negative impression of the horse world to the newbies.
As a veterinarian I rarely if ever charge for a phone consultation - a reference on a sale horse would be akin to that for training professional if the trainer had any previous relationship with either party.
If the referring party wants a commission, then it should be a finder’s fee with the buyer, not a commission from the seller IMHO.
