Does it cost anything to become a B2B referral partner?
Usually no. Most B2B referral programmes are free to join and pay you a commission. Fees appear mainly in software partner tiers that include training or listings.
A referral partner sends clients to another business and gets something back, usually a commission of 10–20% of the first deal or a share of recurring revenue. Companies pay because referrals are cheap clients: referral programmes lower acquisition cost by 40–60% compared to ads, as our guide to what a new customer really costs points out. If a company asks you for money just to send them clients, the model is upside down.
Paid partner programmes do exist, mostly at software companies. A higher partner tier may cost €500 to €3,000 a year and include certification, a directory listing, sales materials or a demo account. That can be worth it when the listing brings leads, but it is a marketing cost, not a condition for earning referral fees.
The real cost of being a referral partner is your reputation. Each introduction tells your client that you trust the other company. One poor recommendation can cost you more than any fee, so check how the partner treats the clients you send.
Before you sign a partner agreement
- 1Check who pays whomCommission should flow to you. A fee to join is only acceptable when you get something concrete for it, such as training or a listing.
- 2Read the payment termsLook at when commission is paid, for how long and what counts as a referred deal. The usual ranges are in what commission to pay a referral partner.
- 3Test with one clientSend one introduction and watch how it is handled before you recommend the partner widely.
- 4Agree how you hand overA short three-way call works better than forwarding an email address and hoping for the best.
If you are looking for partners rather than programmes, start with businesses that serve the same clients with a different service. Finding referral partners explains how to spot them and how to start the first conversation.