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I do a nice business for promotional products and wearables for parties, events and college/high school groups. I work with a lot of event planners and college kids who throw business my way and want to come up with some kind of commission structure or finders fee as an incentive for them to continue working with us.
However, I am completely confused how to go about this.

I started giving them a 10% commission, but I usually work with a 40% markup, so a $1000 order would normally mean a $400 profit and that would mean I give away $100 which is 25% of my profit, which doesn't seem too fair for someone that just refers someone to me or just sends art to their customer once we send it to them. Plus, my margin is lower on larger orders...

Another thought was a more general scale of $250-$500 would be $25 commission, 500-1000 is $50 and $1000-$2500 up is $100. I would still be giving away a lot, but it would cover me a little more once I get up into my higher profits.

Does anyone have experience with this? I would think that college kids would be happier with a smaller commission than an event planner, but I'd like to make this as easy as possible for all my referring parties. Thanks so much!!
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