Referral fees for sale of horses

[Dorrie & Frank]

Have you ever sold a horse and paid a referral fee for the lead? What percentage? Should it be done? We've considered refferal fees but have had some folks look at us like we're tetched - you know - :new_shocked: So I thought I'd ask ya'll what you thought about paying a refferal fee if some sends a buyer your way. Need to know - deal or no deal! (my current appointment TV - I know I need a life!)

 

[Annetta]

I know there is a whole 'nother world out there when it comes to paying commission to the buyers agent, the seller's agent. Sometimes the barn owner expects a commission when a horse from his barn gets sold--if he had something to do with selling the horse I can see it, but to pay him a commission just because the horse was boarded there, no....I know horses that have sold for far more--even double--what the seller actually got for the horse!

Referral fees fit right in there with all of that. In my view, if you're a big name trainer and you send some high powered, big money clients to my door to buy a high priced horse, then I would have no problem paying a finders fee to you IF I had talked to you first, told you about/showed you some horses I have for sale & suggested that maybe you could send some buyers my way. If, however, you are a friend or a neighbor & you have a buyer that wants something you don't have & you suggest to him that he might try neighbor Netta's place down the road, no, I wouldn't be too inclined to pay you a referral fee. I've had a friend send a buyer here & likewise I've sent buyers on to her and requesting or paying a referral fee to each other just isn't something we've even considered.

Then of course I've had people come to look at horses and they're wanting something that doesn't cost more than $300, maybe $400 tops, papers not required. I send them a few miles over to the people that raise & sell unregistered horses. Somehow I think those breeders would be less than impressed if I were to tell them I've sent them x many customers, how about my referral fee?? :lol:

 

[Michelle@wescofarms]

We have paid 10-15-20% (and received the same) from other breeders that we work with cooperatively. It's an honor system, and has to be a direct referral. The higher amount usually involves more actual work to get the referral. The 10% is for a direct name/contact that buys.

I paid on three horses sold to a buyer, from another breeder's referral, even though the buyer had bought from me before! She had orginiated from a direct 'call Michelle about this horse', so I felt it was a referral and paid happily!

 

[Marnie]

I guess maybe I'm from the old school. I would never pay referrel fees or except them. To me it's a matter of you scratch my back, I scratch yours. I've referred people to others plenty of times and have been offered fees on occasion but to me, it was like a slap in the face. I think people need to help each other without expecting money for it. JMO.

 

[mountain_waif]

.....

 

[MyBarakah]

Hi,

I guess I would never do a refferal fee unless I was asked or asked someone....

Right now I have my dressage horse (my last big horse) for sale. He's a exceptionally nice 5yr.old gelding that I've raised as a baby and have been the only one who has trained/rode him.... He has gotten very high scores in dressage..... I do not want anything to do with helping in getting him sold...... too hard for me.... He's at my mom's right now so I do not have to see him. But her dressage instructor is working him and will be selling him for me. I told her I wanted $$$ for him and then she can have anything over that, which would be a couple thousand over what I want for him (which is extremly reasonable)....... but I really like her and if she can get him that "perfect/right" home, it's worth it to me!!

He's the first one I've ever had someone else ride/sell my horse for me...... But I just don't have the time nor do not want to deal with it!!

In that case..... it's important to pay a fee!

:

I have in the past sold horses for friends/people I knew and once the horse was sold, they gave me a commision... But I never asked for any money and that was on thier own free will...

 

[Cathy_H]

If I just sent someone to another farm or someone was just refered to us I would not expect to pay or receive a commission.......... If I did the leg work, took the person to the farm, gave info, showed pictures, sent email, showed the person the horse then I would expect to pay & receive a commission........ Having said that I think if a horse sold for thousands then I would be glad to pay the commission & probably expect to receive one also........................... I did tell someone at a clinic last week that if he sold our yearling colt I would give him 10%. If he refers someone & they come here without him & buys the horse then I will send him the commission.............. I often refer people to a friend out of my area, she sold one from my referral & she sent me a nice present. I didn't expect anything though as we are friends & I trust her to do buyers right.

 

[Cathy_H]

If I just sent someone to another farm or someone was just refered to us I would not expect to pay or receive a commission.......... If I did the leg work, took the person to the farm, gave info, showed pictures, sent email, showed the person the horse then I would expect to pay & receive a commission........ Having said that I think if a horse sold for thousands then I would be glad to pay the commission & probably expect to receive one also........................... I did tell someone at a clinic last week that if he sold our yearling colt I would give him 10%. If he refers someone & they come here without him & buys the horse then I will send him the commission.............. I often refer people to a friend out of my area, she sold one from my referral & she sent me a nice present. I didn't expect anything though as we are friends & I trust her to do buyers right.

 

[Reble]

I had never heard of this before untill, my friend's husband put money in my hand after I referred someone to their farm and sold a horse.

Tryed to refuse in a public place, but would not take no for answer. I do know we have been good friends for many years now.

I guess if the one believes you have helped them in a great sale. They feel like giving a referal fee, than let them and return the gesture in another way.

I have sold puppies and got referrals many times, I thank them and tell them if they ever want a puppy I would give them a deal.

Tell them instead of a referral fee, will give you a better deal, if you are interested in buying one of my horses.

: :saludando:

 

[Dorrie & Frank]

We usually pay 10 - 15% referral fees, depending on the price of the horse, on the honor system and I've had some folks look at me like I was crazy! :new_shocked: I wasn't sure if it was standard operating procedure or I was a bit off my rocker

: I can see that it is a bit controversial. We figure that if someone helped send a good new home for one of our horses that the fee is the least we can do and it might help our referrer to support their horses. :xbud:

 

[anita]

I pay happily refferal fee 10% or more. Its a kind of honor, politeness, kindness and good manners.

Anita

Little Texas Miniature Horses

Sulphur Springs TX

[email protected]

 

[Reble]

We usually pay 10 - 15% referral fees, depending on the price of the horse, on the honor system and I've had some folks look at me like I was crazy! :new_shocked: I wasn't sure if it was standard operating procedure or I was a bit off my rocker

: I can see that it is a bit controversial. We figure that if someone helped send a good new home for one of our horses that the fee is the least we can do and it might help our referrer to support their horses. :xbud:

Sounds good to me, if you want to get others to help sale your minis.

Nothing wrong with that, just the same as paying out for advertising.

 

[Michelle@wescofarms]

I guess I should clarify my response to referral fees.

I do help promote and sell my friends horse all the time, without any money changing hands or with any expectation of a fee. And I routinely send people to other breeders in other parts of the country and/or locally if I can't meet their needs - rarely do I get even a thank you though for that!

But, I do also deal with breeders that treat their farm/ranch as a business (as I do) and as such do compensate and receive compensation for referrals. Coming from real estate where referrral fees were common and often in the many thousands of dollars, I don't see anything wrong with giving and receiving referral fees. I don't ask for a fee though, unless I have to do a bit of leg work to get the buyer, seller and horse together.

I've also given and received other forms of compensation in lieu of money.

It really depends on how you chose to network and run your business.

 

[jayd3000]

I Use to do this but i called it a brokage fee..If someone was looking for a certain animal I would fine the contacts then set the price up and shipping or pick up.. Then I would charge 10% of the price of the animal. then there would be more fees if they needed special lic. or permits to keep the animal..