Marc is a plumber in Nantes. He has never advertised, has no website, and yet his schedule is full 3 months in advance. His secret: 4 real estate agents and 2 property management companies regularly send him clients. In return, he pays them 5% of the net amount of work performed.
That's what a business referral network is. And it works in all sectors.
What is a business referrer (in the legal sense)?
A business referrer is a person who connects a product or service provider with a potential customer. They are neither a commercial agent (who negotiates and concludes on behalf of the principal), nor a broker (who acts on behalf of the buyer).
The distinction is important: the referrer simply transmits the contact. The sale, negotiation, and contract conclusion remain your responsibility.
Who can be your business referrer?
Think broadly. The best referrers are often those you wouldn't expect:
Trades complementary to yours — an architect for a craftsman, an accountant for a consultant, a hairdresser for an aesthetician (yes, word-of-mouth referrals in salons work).
Your satisfied former clients — the most enthusiastic are often ready to actively recommend, especially if there's a benefit in return.
Real estate professionals — agents, managers, syndics. They are in constant contact with people who have needs (work, moving, renovations, insurance).
Professional associations — chambers of commerce, entrepreneurship clubs, sector federations.
Compensation: how much and how
Common practices:
| Type of service | Usual commission |
|---|---|
| B2B services (consulting, IT) | 5 to 15% of net amount |
| Construction work | 3 to 8% of net amount |
| Product sales | 5 to 10% of gross margin |
| Real estate | fixed (€500 to €2,000) or % |
Two possible approaches:
- Percentage commission — simple, transparent, the referrer is motivated by the amount
- Fixed fee per qualified lead — you pay a fixed amount for each contact transmitted that meets your criteria, even if they don't sign. More risky for you, but it motivates the referrer to pass along even "small" leads.
The referral agreement
Essential, even among friends. Points to cover:
- Identification of parties and contract purpose
- Definition of a qualified referral — what counts as a referral? A simple name? A scheduled meeting? An accepted quote?
- Amount and commission terms — percentage, calculation basis, payment date (at client signature, upon collection, etc.)
- Validity period of the referral — if the referrer sends you a contact in January and that contact signs in September, do you still owe the commission? (Generally yes, for 6 to 12 months)
- Exclusivity or not — can the referrer also work with your competitors?
- Non-solicitation clause — the referrer must not solicit your existing clients
Pitfalls to avoid
The fake referrer who is actually a commercial agent — if your "referrer" negotiates conditions, sets prices, or signs on behalf of your company, they are legally a commercial agent. This changes everything: protected status, mandatory end-of-contract compensation, registration in the special register. Verify the reality of the relationship.
Undeclared commission — any commission paid must be invoiced by the referrer (they must have a status: self-employed, company, etc.) and declared. Cash envelopes "between friends" constitute tax fraud, period.
The greedy referrer — if the commission exceeds your margin, the business referral has no interest. Always calculate your net margin after commission before accepting a deal.
A good network of referrers is an acquisition channel that works for you while you work for your clients.