We will pay a 5% finder fee but only if the person is NOT receiving a commission from the buyer. No double dipping. And if we pay them the fee we have to issue a 1099 so we will need a Social Security #.
[QUOTE=Tiki;6520606]
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.[/QUOTE]
That’s the approach I’ve used unless I’ve entered into a written agreement with a broker as seller.
Keep in mind if you are being asked to pay a referral or a commission the person involved should be a Pro. If they do not have Professional status with USEF collecting a fee is cause for sanctions from USEF including loss of Amateur status, a fine, a possible suspension and the inability to reapply for Amateur status for a year.
- Person is a Pro but not a broker nor someone that regularly sells horses.
- I have a longstanding relationship with this person.
- Person did not ask for a fee.
- Person has no relationship with buyer - never met them before.
- Person got call from her vet because the buyer was in town to buy a horse and that horse failed the PPE. Vet calls person to ask if there are any horses in the area they could look at.
- Person calls me to ask a few questions about my horse for sale.
- Person calls vet back and gives vet my contact info.
- Buyer calls me, comes to see horse, loves him, vets him. buys him.
Interesting that the opinions range from “seller should not pay fee, buyer should” to “seller should pay $500.”
I think I’d send her something. And I would send the vet a nice gift card for dinner, for taking the iniative to call trainers to see if there were other options while the person was looking!
That person sounds super-ethical. I am a “don’t expect a fee” person but I would definitely send a couple hundred or a gift certificate to the fanciest restaurant in town, wine of the month club for a year, something you know the person would enjoy. It is an investment in the future for your business, as well as being a nice thing to do.
[QUOTE=HorseShopping;6522108]
- Person is a Pro but not a broker nor someone that regularly sells horses.
- I have a longstanding relationship with this person.
- Person did not ask for a fee.
- Person has no relationship with buyer - never met them before.
- Person got call from her vet because the buyer was in town to buy a horse and that horse failed the PPE. Vet calls person to ask if there are any horses in the area they could look at.
- Person calls me to ask a few questions about my horse for sale.
- Person calls vet back and gives vet my contact info.
- Buyer calls me, comes to see horse, loves him, vets him. buys him.
Interesting that the opinions range from “seller should not pay fee, buyer should” to “seller should pay $500.”[/QUOTE]
Only one question matters. Do you want the person who contacted you to do so again in the future?
Tim
Yes, this person is super ethical. She reviewed a video of a horse I was going to go see and I called her after my test ride to get her opinion. Didn’t expect a dime and didn’t want anything because she knew she would be making money from lessons and training.
I am most defnitely sending her a “thank you” check. I was thinking $150 plus taking her out to dinner some time but was curious what others thought. When she texted to inquire about the PPE and I texted back that he passed and I had a check in hand, her reply was “you owe me dinner.”
I plan on sending the check when he gets on the van to go to his new home (which is probably next week.) Buyer’s check will have cleared by then! 
I would never expect payment for a referral but some people do. This is a tricky area especially if you don’t know the person well enough to know their expectations. It sounds like you know her well enough hence the “you owe me dinner” reply. I think taking her out to dinner and presenting her with a thank you note with a cheque for a nominal fee will probably be most appreciated!
I think if it is someone I work with regularly (you mentioned that you had a long standing relationship with them) say it is one of my service providers, farrier, vet, grain provider… something like that… And no fee was discussed… I would be more compelled to give a “gift” or gift certificate and mention it is a thank you for helping sell the horse… The amount of which you can decide whatever amount is comfortable for you.
Basically if it wasn’t a broker/trainer/known fee situation and you are just looking to do something nice to encourage them helping again and to say thanks its open to you to pick an amount and a gift card or gift basket or something is the easiest way to do that without seeming like you are throwing them a potentially chintzy seeming amount of cash…
Just my thought…
I’ve sent many people to others that have resulted in sales, nobody ever offered or paid me a dime. That said, a token of appreciation would have been very much appreciated… a hundred or more dollars, a bottle of wine and a thank you note, or even just a reciprocal referral… I never got a thing!
