[lookout123]

HLJ,

1) although you only have the agreement with him always give people 2 referral choices thus removing the onus from you if the experience is not up to the client's expectations.
2) i would suggest that although you might make less money, ask for a flat referral fee rather than a production related fee. If clients find out you are paid more if the work takes longer they might incorrectly conclude that you are sending them to the guy who works slower just to pad your own pocket - credibility goes up in smoke.

3) i don't believe this is an ethical dilemma at all. If it works for you, then go for it. I personally choose to decline all referral fees and make that clear to my clients because i have found they appreciate that i have a choice but have chosen to only work for them. I work 100% referral myself and it has worked very well. i make very clear to clients that i don't accept pay for anything i do other than my practice - referrals, coaching, corporate HR consulting are all done out of good will. that discussion results in higher profits from increased referrals so it isn't like i'm a saint or anything.