  We discuss nonperturbative contributions to the inclusive rare $B$ decays
$B\to X_s\gamma$ and $B\to X_s\ell^+\ell^-$. We employ an operator product
expansion and the heavy quark effective theory to compute the leading
corrections to the decay rate found in the free quark decay model, which is
exact in the limit $m_b\to\infty$. These corrections are of relative order
$1/m_b^2$, and may be parameterised in terms of two low-energy parameters. We
also discuss the corrections to other observables, such as the average photon
energy in $B\to X_s\gamma$ and the lepton invariant mass spectrum in $B\to
X_s\ell^+\ell^-$.
