The Value Of Referrals, Finder’s Fees And Affiliate Commissions

In the world of professional sales, a sophisticated organization knows exactly what a "prospect" is worth. In fact, that's one of the key components to a great marketing budget.

In the world of smaller businesses, owners may or may not be so sure of the exact value of a potential customer. Still, everyone seems to agree that referrals are important to getting more clients.

How much are you willing to pay?

If you've ever bought real estate, you know it's standard practice for a real estate agent to share the sales commission with others: the broker and perhaps another broker who originated the lead. Even a 6% shared sales commission can be worth thousands of dollars! Learn more about building commissioning by hiring commissioning firms.

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However, in the world of private equity, the SEC strongly discourages search engine fees and limits them to a few, highly registered and highly regulated individuals.

If you find yourself in any of these fields, you should probably go to your registered broker/manager for more details!

Finder Fees or Affiliate Commissions in Online Businesses

Unlike the two examples above, in the world of Internet marketing, the use of affiliates to help sell products is widespread and unregulated. (If you're not in the habit of doing so, start looking for links that say "affiliate program" or something similar on sites you visit regularly. These links are most often found in the footer of the home page.)

Paying affiliates to increase sales is not only recommended for online businesses, being an affiliate is a business model in itself.

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