Would it be nice to... not expect a referral fee, not ask for a referral fee, but receive one anyway? Regardless, a returned referral would all I would ever ask for.

You've got good karma girl, keep it up!

Good to hear how busy you are, Jackie!  Recently, I have received two referrals, neither of which have panned out.  Only one of the referrers specifically asked for a referral fee, which I would have been happy to pay had I gotten the job (no word back from the potential client - and I've kept the referrer updated on this!).  Should I have asked the other referrer if she was expecting a referral fee?   I wonder; nothing was said, perhaps I should have offered? 

Time to review - what do others do?  I, personally, would feel uncomfortable passing along a lead or referral and expecting/asking for a referral fee.  Goods things have always come back to me.  But then I understand your excellent point about the time and expense of marketing...looking forward to this debate!  Julie

Cari - Once or twice, maybe, repeatedly sending business to another with absolutely no return is just not fair play or good sense (as I see it).  The truth of the matter is, this person is spending big marketing dollars nationally  for her business that in turn leads to business for others...I'd call that "good karma". 

The fact is I do not spend marketing dollars outside of my area - a strategic decision.  What are the possibilities of me being able to reciprocate in referrals on a national level consistently?  Everyone of us is in business to make a profit at the business, some to supplement their family incomes...how does the person that spends those initial marketing dollars profit if there is no fair play and why should they refer to the individual that may be a terrific stager looking to grow their business if s/he is not willing to compensate the original referer (if only out of the goodness of their heart)?  I'm imagining business schools across the world making our industry a laughing stock!

Jackie 

Hi Julie!  Did you make it to Framingham?  

I have been busy and not so busy - depending on the moment.  I'm sure you know how it is, when it rains it pours.

Regarding local referral fees - I've never been referred a client outside of this situation, I have been the  refer-er, but have never asked for a fee.  I believe local markets differ though in that there is a greater chance of fair  play (or other fair turn) by organic opportunity ie: painters, plumbers, electricians, general contractors, Realtors(r), insurance agents, banks, etc. ... or "karma".

Jackie 

No - I thought I would get this staging job for $1.8 million house, but they decided to drop the price instead (see a previous blog post) - THEN I would have to go to Framingham...oh well...we'll see the place soon!  Julie

Here in the Los Angeles area, many Stagers icluding myself, have built a rather strong "network" of tossing eachother business when it's out of our area, or we are simply too busy to take on another property at that time.  I have even added an additional page to my website of "Partners" with direct links to Stagers whom we have partnered with who service areas which we do not.  My company also stratigically only markets to the SoCal area, not nationally.

This topic was actually brought up at a local RESA meeting a couple months ago,  the concencus was, "stratch my back, and I happily scratch yours",  but the referral "fee" was left at the discretion of the individual Stagers, as one comment mentioned, not all referrals pan out. 

Connie - it sounds (reads) like y'all have a terrific and close knit local network; it's one we're working on here.

Sure, not all referrals work out; but of those that do, if they're consistent and out of area, how should the refer-er be compensated, if at all?  Or, would it be better for them to open shop with their own stagers in the neighborhood?  Me?  I'd gladly pay a one time referral fee knowing if I do a great job I'll get additional business from that one referral.

Jackie 

Julie - missed your follow up, up there.  I saw your post and commented that I thought it unusual that a luxury property owner would decide to price drop $70K below asking in lieu of staging. 

Jackie

Jackie, I have often referred two other people in the past on homes I was unable to consult on for one reason or another and never asked (or was offered a referral fee) which was fine.  Nor did I ever once receive a referral from them.  I would have to think in two years time they must have at one time or another gotten a contact and were unable to go.  I do refer to someone else who also refers to me when the occasion arises, it would be nice to have a network, however.

Carole - Hello, my friend!  And this too, even these smaller referrals that are not appreciated by acknowledgment and either reciprocated or compensated with a referral fee highlights (for me) the wrongness of it all.  There is goodwill (by the refer-er) and then there is greed (by the perpetual acceptance of the referral).  When and where do we as an industry decide that fair turn is indeed fair turn.  I don't think our eyes have to stray too far, we are too closely aligned with the real estate industry and they do recognize, honor and reward the labors of someone else's work.

Jackie 

I think it depends on the stager.  I belong to a network of stagers and redesigners and we discussed not asking for a referral fee but have spoken with others that expect one.  In that case I pay if I get job out of it and I would then expect a referral from them as that was what they asked of me.  Honestly, I have no idea what is the best way to go about this situation.

Jackie BFF, for what its worth, I prefer not to get involved with referral fees, coming or going.  Reason, even though we all spend money marketing, some more than others, when we refer a client its because we either can't do the job, don't have the time, or don't want the job.  Why should I pay someone or visa versa for giving something that was impossible to achieve by the other?  I like the old fashioned "professional courtesy" approach to doing business.  As you said, its karma, what goes around comes around.  Helping our fellow business women is all part of doing business.

Sandra - Thanks for stopping in.  I'm with you in that "I would then expect a referral from them as that as what they asked of me".  I know of very few (um...none) that do anything for "free" in the business world, why are we as "professional" stagers asking our cohorts to do it?!

Terry - BFF!  We talked about this long ago :) Locally, I've gladly given referrals, but this is at someone else's expense and to my benefit...why would I not at least offer if knowing as I did, I could in all probability never reciprocate?

Ultimately, each stager is their own island; and each island will have to provide for themselves...or collaborate.

Jackie 

I always ask what they would like as a referral fee should I get paid work out of said job.  ?They have a always been reasonable and I don't mind paying esp if they are from out of my area and unlikely to get the same from me.

Jackie, it is true that the staging industry is part of the real estate industry however, not quite thinking like the real estate industry in some areas.  Realtors commonly give and receive referrals and pay each other a referral fee for that privilege.  The point is really not that we don't like each other enough to do it for free, but that our time is worth something and acknowledging that is a good will sort of thing.  AND, the time the referring person has spent on the client relationship and then entrusts them to another is quite a compliment.  In reality, it is additional business we would not have had except for the respect and referral of the referring person.  We are getting business because of their direct endorsement.  A personal recommendation makes that client much more than a cold call.  I have no hesitation paying a referral fee. 

And have confidence when giving a referral that I have hand picked just the right person for my client.  There is alot of peace of mind in that.  Stagers just need to think like a business about the business of staging. 

Kathleen - Smart business woman, you.   Thanks for weighing in.

Terrylynn - Well said!  Thank you!!

Jackie 

Jackie, you are most welcome.  Just my opinion of course, but thinking about it, it makes sense that this wold be how it evolves for the professional staging industry in a business world sense of things.  Have a good week.

Jackie: I get a lot of calls for work that is too far for us to travel to or we are too busy to take on. I always refer those jobs to other stagers I have gotten to know (and trust) from meeting at roundtables, stagers mixers, or on Active Rain, etc. I do not ask for a referral fee. Most of these people refer jobs to me in turn, if something comes up that is out of their area or they are too busy to take on. Not all the referrals pan out, but sometimes they do. All I ask is to be updated if they got the job and how it went. Connie Tebyani and I pass a lot of jobs and info back and forth - since our areas overlap a little and we were both in the LA Times Article we tend to be called by the same people. There is plenty of work for everyone.

I recently referred a job to another stager. I don't know if she got the job or not, but she sent me a huge floral arrangement. It was completely unnecessary, but greatly appreciated. It was very thoughtful of her, and makes it more likely that her name will pop into my head first the next time I get a referral in her area.

I refer a lot of other suppliers for work, like landscapers, painters, carpet sales, etc. Some of them give me a referral fee, some don't. I don't ask for one, but always appreciate it when it happens. Mostly I just like to be able to refer competent, trustworthy people who do a good job for my clients. My clients are happy, and happy clients are more likely to refer me to their friends and associates.