Others may disagree but my view is that rather than focus on the hit you're taking on this particular transaction you just want to keep generating business and goodwill and know that you'll come out ahead in the end. I've kicked and screamed over some fees I've had to pay out over the years but much time later come to realize that some of those transactions grew into large parts of my business because that client - that I took despite the pain of the fees paid out - has referred numerous friends to me. It's all good.
Work hard for the client. If they are happy with your services, they will hopefully refer some friends and family to you, and you don't have to pay a referral fee for those!
B&B Realty Group - Keller Williams Elite Dallas TX
If you don't want to work with the client, and as long as you are not in escrow, you can resign your position and move on. But as long as you are working with the client (whom you may not have picked up were it not for the referral) then you should honor your agreement.
Fred Yancy, Broker