What is the standard referral fee percentage? Forum

[Anonymous User]

Just trying to get a sense of what the industry standard is or what others might have gotten for referring a case?

As I know responses will vary due to different types of cases, as well as different state laws.

Assume CA and a class action (although I'd be curious about other types of cases as well).

[Anonymous User]

Is it normally a percentage fee or do they get things like golf vacations, boats, $1,000 bottles of wine, ect?

[Anonymous User]

Is it normally a percentage fee or do they get things like golf vacations, boats, $1,000 bottles of wine, ect?

In California, It's usually a percentage fee. Otherwise it's more of a gift and not actually a referral fee, which is something different. I don't know how it's done elsewhere, seeing as many states don't allow referral fees.

[Johann]

usually a third of a third

[Anonymous User]

usually a third of a third

That can't be. For a simple referral on a class action? That seems insanely high.

[kellyfrost]

usually a third of a third

If my math is correct, is that .111111111 ?

[Anonymous User]

usually a third of a third

If my math is correct, is that .111111111 ?

It's not quite that simple. The (first) third that the poster referenced would be the third that the attorney would get in fees. So, you'd essentially be getting a third of the fees that the attorney takes in. However, usually that number is further reduced for litigation costs and expenses (think filing fees, expert witnesses, deposition expenses, etc). So, you'd be getting a third of the attorney fees recovered, less costs and expenses. However, that number seems way to high. I've heard that it is more like 15-20% but thought that even that seemed kind of high considering you aren't really doing anything but finding a case and handing it off to someone.