Is a referral fee based on gross revenue, net revenue or collected fees?
A referral fee is calculated on whatever base the agreement defines: gross revenue (everything billed), net revenue (after listed deductions) or fees actually collected. SourceX uses a narrow, checkable base: partners earn 25% of the eligible platform fees SourceX collects from a referred company's licensing deals, capped at $100,000 per company, never from the company's proceeds.
The short answer: the agreement's definitions set the base
A referral fee is calculated on whatever base the referral agreement defines, and the same headline rate can produce very different payments depending on that definition. Gross revenue means the full amount billed or contracted. Net revenue means gross revenue minus the deductions the contract lists. A collected base counts only money the payer has actually received.
SourceX uses a collected base with one further narrowing: the base is SourceX's own fee, not the referred company's licensing proceeds and not the buyer's total price. Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 per referred company, and the reward becomes payable only after the buyer pays and SourceX receives its fee.
Common referral fee bases, defined
These are the six bases you are most likely to meet. The labels sound similar, so read the definition rather than the heading.
| Base | What it measures | Typical deductions or exclusions (check your contract) | When the referrer tends to be paid |
|---|---|---|---|
| Contract value or bookings | Total value of the signed contract, sometimes across its full term | Little or nothing | At or soon after signing, with a clawback if the customer cancels |
| Gross revenue | Everything invoiced to the customer in a period | Sometimes sales tax only | When invoiced, or when the payer books the revenue |
| Net revenue | Gross revenue after the deductions the contract lists | Discounts, refunds, credits, taxes, pass-through costs | After the payer closes its books for the period |
| Gross profit or margin | Revenue minus the direct cost of delivering it | Cost of goods or services, as the payer defines it | Once the period's costs are known |
| Collected revenue | Cash actually received from the customer | Anything unpaid, written off or refunded | After the customer pays |
| Payer's own collected fee (the SourceX model) | The platform fee SourceX itself receives on a deal | Anything that is not an eligible platform fee under the terms | After the buyer pays and SourceX receives its fee |
The further down the table you go, the smaller the number the rate applies to, and the closer that number sits to money that has actually changed hands.
How the SourceX reward is calculated, step by step
- The referred company and SourceX agree one all-in price for the license. SourceX's fee is included in that price, and the company pays no separate charges.
- AI labs and data buyers review the opportunity, a buyer selects the data, and the agreement is signed.
- The buyer is invoiced and pays. The company's one-time payment typically arrives within about 60 days of invoicing once the buyer has selected the data.
- SourceX receives its fee. That fee is the pool the reward is calculated from; the company's proceeds are not part of the base.
- The eligible portion of the fee, as the program terms define it, is multiplied by 25%.
- Rewards for that company accumulate across its eligible licensing deals until they reach the $100,000 cap per referred company.
- The reward becomes payable once the money has arrived. A lead, a meeting or a signed agreement alone does not trigger payment.
The referral earnings calculator shows how this formula works using the published program. Do not try to estimate a reward from a guessed license price; neither the price nor the fee is known until terms are agreed.
Why the base is SourceX's fee, not the company's proceeds
Many referral programs pay a share of what the customer spends. In data licensing that framing would mislead, because the money flows the other way: the referred company is the one being paid. If a referrer's reward came out of the company's license payment, the company would in effect be paying for its own introduction.
SourceX avoids that by paying partners from its own fee. The reward is never deducted from what the company receives, and the company sees one all-in price with nothing added for the partner. For an adviser, that changes the client conversation: you can say truthfully that your reward does not reduce their proceeds.
The base is also checkable from one side. SourceX knows what it collected, so a partner does not need to see the company's financial statements, the buyer's budget or the license agreement to understand how a reward was worked out. That suits introductions where the company's commercial terms should stay between the company, the buyer and SourceX.
Gross, net and collected: what changes for a partner
| Question a partner asks | Gross revenue base | Net revenue base | SourceX collected-fee base |
|---|---|---|---|
| Does a refund or credit reduce my reward? | Often not, until a clawback applies | Yes, if it is a listed deduction | Only money actually received counts |
| Can I check the figure? | Only with the payer's billing records | Needs the deduction schedule as well | Calculated from fees SourceX received |
| Does my reward cost the client anything? | Depends on who funds the fee | Depends on who funds the fee | No; it is a share of SourceX's fee |
| When does it become payable? | Often early | After the period closes | After the buyer pays and SourceX receives its fee |
| Is there a ceiling? | Only if the contract sets one | Only if the contract sets one | Capped at $100,000 per referred company |
For the timing side of the same choice, compare referral paid on collected revenue vs a signed contract.
Definitions to read before you sign any referral agreement
In any program, the definitions section matters more than the headline rate. Before signing, check each of these words:
- Eligible. Which fees or revenue count, and which are excluded?
- Collected or received. Is the base cash received, amounts invoiced or revenue recognized?
- Net of. If the base is net, which deductions are listed, and can the payer add new ones later?
- Per company or per account. Does a cap apply to each referred company or to everything you refer?
- Cumulative. Does the cap count all deals with the same company together?
- Attribution. What makes you the credited referrer, and is there a window?
- Later deals. Do follow-on deals with the same company count? See whether rewards apply to repeat deals.
- Payment trigger. Which event makes the reward payable?
If referral contracts are new to you, start with what a referral fee agreement is. For SourceX, these points are set by the published terms and your signed partner agreement; rely on those documents, not on any summary, including this one.
Limits and open questions
Three issues sit outside the fee base itself but still affect what you receive and when.
Accounting revenue is not cash. An agreement that defines the base as recognized revenue ties your reward to accounting rules rather than to money received. Under ASC 606, a license of intellectual property can be recognized at a point in time or over the license period, depending on whether it gives the customer a right to use or a right to access the licensor's IP, as Deloitte's revenue recognition roadmap on licensing explains. A collected-fee base sidesteps that timing question.
Rewards are income. The IRS explains in Publication 525 that an amount included in income is taxable unless the law specifically exempts it, so plan on referral payments being taxable and ask a tax adviser how that applies to you. Reporting forms are covered in whether you get a 1099 for referral fees.
Your profession may limit fees. If you hold a professional license or work inside an advisory firm, your profession's rules or your firm's policy may restrict, condition or require disclosure of referral fees. Check them before you register, and if your firm has no house rule yet, see how to set a referral fee policy for your advisory firm.
This is general information, not legal, tax or financial advice. Confirm with your own counsel, tax adviser or professional body before acting.
Next step
Read the reward definitions in the program terms, then register as a partner and introduce a US company with 50+ full-time employees at peak (contractors excluded), several years of records and an owner willing to consider a license.
- Step 1Share your linkSend your personal link to a company you know.
- Step 2Company appliesThe company applies itself at /apply.
- Step 3Buyer selects and paysThe buyer selects and pays for the data and SourceX receives its fee.
- Step 4You get your rewardYour share of SourceX fees becomes payable.
Common questions
Is the SourceX reward based on the full license price?
No. The reward is calculated on the eligible platform fees SourceX actually collects from the referred company's licensing deals, not on the total price the buyer pays or the amount the company receives. The company is quoted one all-in price with SourceX's fee included, and the partner share comes out of that fee alone, so it never reduces the company's proceeds.
Do I need the license price to understand my reward?
No. The reward does not depend on the license price or the company's proceeds. The base is the fee SourceX received, which SourceX can calculate from its own records. Keeping licensing terms between the company, the buyer and SourceX protects the company's confidentiality, and a partner does not need the company's financials or contracts to understand how a reward was worked out.
What does eligible mean in eligible platform fees?
It means the fees the program terms count toward rewards. The published terms and your signed partner agreement define which fees qualify, so read that definition rather than relying on a summary. If a deal includes something you are unsure about, ask SourceX before assuming it counts, and avoid estimating rewards from a guessed license price.
Is a reward paid once the buyer signs but before it pays?
No. A signed agreement is a milestone, not a payment trigger. The reward becomes payable only after the buyer pays and SourceX receives its fee. A lead, a qualification call or a signature on its own does not make a reward payable, and if a deal never funds, no reward is due on it. Rewards are not guaranteed.
Does the cap apply per deal or per company?
Per referred company, cumulatively. Rewards from all of that company's eligible licensing deals add up toward a single cap of $100,000, and once that total is reached, further deals with the same company do not add to your reward. The cap is set per referred company, so introducing a different qualifying company starts a separate total.
Is a net revenue base worse for referrers than a gross base?
Not necessarily. A net base applies the rate to a smaller number, but that number often reflects money the payer actually keeps, which leaves less room for disputes. What matters is whether the deductions are listed precisely, whether the payer can add new ones, and when the figure is calculated. A modest rate on a clear base can be worth more than a high rate on a vague one.
Related pages
- Referral Earnings Calculator
- Paid on signed contract vs paid on collected revenue: when a referral reward is earned
- Do referral rewards apply to repeat deals from the same company?
- What is a referral fee agreement?
- Do you get a 1099 for referral fees from a partner program?
- How to set a referral fee policy for your advisory firm
Free resources
- Operational data inventory builder — List systems, record types, years held and owners.
- AI readiness assessment — Ten questions, five dimensions, a score out of 100.
- EBITDA calculator — Reported and adjusted EBITDA from net income.
- All free tools · MCP resource center
By SourceX Partnerships Team · Published 2026-10-09 · Updated 2026-10-09
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