Referrel fee

[Questionguy101]

Is it ok to pay referrel fee to someone who referred you a tax client? What about if that person is neither a CPA, EA nor a licensed tax preparer?

[Chief]

Referral Fee

I do and think nothing of it. If I get three referrals from a client, I will do their return free of charge for that year. IT PAYS.

[Beth]

Referrals

How much do you pay?

I am just starting my own practice this year, and have set up to provide a $10 gift card to a prominet retailer for any referral I get that become paid clients. Not sure how well that will work yet, but do know that referrals will be critical. Also am doing a postcard mailer to new area residents in a specific income target range to get started.

Others just starting- what have you done and what works?

[TheGoodnShawn]

Referrals

...are a must! 90% of my clients were referred to me. I like to help motivate them. This year I will have a referral program which will give a referral fee for each client, and a seperate referral bonus for the person who refers the most clients to me who are able to file.

Shawn
Atlanta, GA

[Girard Van De Lay]

Referral fee

I give a $25 referral fee for any new paying client. When I first started out it was $10 and I would only get a few a year now that I have raised the fee I get quite a few a year. The way I look at referrals is that it is a one time expense and I should be able to keep the client i n following years. When you are building a practice it is just one of the things you do.

[Jiggers]

Referral Fees????

Ever since I opened my office over 20 years ago, I have never given any referral fees. I have picked up all my referrals from good, quality, caring service. I go out of the way to help clients. I bill them, but I give what I consider top notch service. That includes answering and responding to phone calls.

I am at the point of not really wanting referrals! In fact, I always "fire" a few clients that are a P*I*T*A 's each year.

[AZ-Tax]

Does Cir 230 Cover Referral Fee?

I know this thread goes back to 2007 but just curious if EA's are allowed to pay a referral fee to someone (not EA, CPA or RTRP) that refers an EA's business? I didnt see anything in Cir 230 about this. Both on the insurance and securities side this is prohibited unless the person you are paying a referral to is equally license.

[OtisMozzetti]

...
I am at the point of not really wanting referrals! In fact, I always "fire" a few clients that are a P*I*T*A 's each year.

I've heard it said that the ideal way to "fire" the PITA's is to charge them in full for the amount of hassle which they require in order to be serviced.

[kpangelinan]

I do and think nothing of it. If I get three referrals from a client, I will do their return free of charge for that year. IT PAYS.

I've done this exact same thing and it works great.

Ever since I opened my office over 20 years ago, I have never given any referral fees. I have picked up all my referrals from good, quality, caring service. I go out of the way to help clients. I bill them, but I give what I consider top notch service. That includes answering and responding to phone calls.

I am at the point of not really wanting referrals! In fact, I always "fire" a few clients that are a P*I*T*A 's each year.

I have always and will always give some type of referral fee. It's just a way of saying thanks and the last few years we've mailed out movie passes from our local movie theater for referrals and has been received extremely well. Even though we are maxed out on returns, there are always enough FIREABLE clients to always except referrals, who incidentally almost always become my best and most loyal clients.

I've heard it said that the ideal way to "fire" the PITA's is to charge them in full for the amount of hassle which they require in order to be serviced.

There's many ways to fire these clients and we use a combination. Sometimes, in a small town, options are limited and fire clients have burnt bridges with all the other accountants so raising rates won't matter to them.....I have had a few of those and had to flat out refuse to service them.

[ChEAr$]

Like my friend jiggers, I have never paid for a client. One low fee for all; equality before the law, a democratic tradition.
In fact I've never ever had a client ask if I did.
Same with so called "discounts", anathema to me.

Somehow such referral fees and discounts just don't seem professional.

[gboykin]

Same philosophy as jiggers and Harlan.

No referral fee, no discounts, just low prices.