Independent TPRs: Do you have a policy on paying candidate referral fees?

I checked in with a person I placed recently to see how he was doing. In his reply, he mentioned a candidate he had referred to me on an unsolicited basis. He asked me, if I were able to place her, would he receive a referral fee?

I told him that I had spoken with her, appreciated the referral, but that she was not in my primary area of focus (frankly she was not even close). I sidestepped the question about the referral fee because it seemed moot.

He then replied and asked again, if he referred a candidate who WAS relevant and was placed by me, would he receive a referral fee?

So I put it to the RBC community of independent TPRs-- do you have formal policies on this or do you handle it on a case-by-case basis? This person's question was a first for me and I'll be interested in your thoughts.  --Chris

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We have a policy of $1000 referral fee. We don't advertise it but if asked we will. Like most of us, we get most referrals for free. But $1000 for $25,000 is a an ok deal.

Thanks for responding, Steve. That policy seems reasonable.

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