Referral Fees ?

cottonhead

Hi any advice or opinions would be really welcome.
I am soon to be starting a buisness and someone I know has offered to advertise my service on her website in return that I advertise hers - the idea being we will pay each other a fee if we get any custom as a result.
My question is what sort of fee is acceptable? Should it be a percentage of the business gained or a one off fee?

steve1980

What are the two types of business?

cottonhead

They are both training companies but one of us will be charging considerably more than the other
(different type of training) . Wanted to keep it quite freindly so was thinking something like 20% but don't know if thats fair seeing as one will earn more than the other..... perhaps a one off payment of £100 as a thank you is better ? I have no clue where to start.

steve1980

All that's going to happen is that the cheaper one of you is going to get all the business.

It's not worth a fee unless either one of you are actually going to pass customers over.

cottonhead

The idea would be that if someone approaches me for training but could also benefit from my friends services ( its a different service to mine) I would introduce them. My friend would do the same for me. Then we would pay each other a fee for the business they brought our way.