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View Full Version : Is This A Fair Price?


kleankutslawn
02-28-2008, 10:37 PM
I have a guy in the real estate industry that aproached me today about doing some commercial marketing for me,i have known him for years & he has sent me alot of leads.The problem is he wants 25% of the gross off of every account he gets for my business.Is this a fair price?If not what is?

TREEGUARD
02-28-2008, 10:43 PM
That's way too much 10% no more it's a finders fee thats all.

kleankutslawn
02-28-2008, 10:47 PM
thats is the same price i came up with.He started talking about the time he will have to spend with each potenial client.

Weekes
02-28-2008, 10:50 PM
10% for one season is my going rate. Any more and you get no profit.

kleankutslawn
02-28-2008, 10:56 PM
is it normally enough money left to see a good profit?

TomberLawn
02-28-2008, 11:08 PM
Real estate must be doing pretty bad if somebody wants to leech off of a lawn care guy like this. Whatever properties he could get you, you could get yourself if you tried. I wonder how the property managers would feel knowing they are paying $100 but only getting $75 worth of service. I've heard a few guys say you can always count at least 30% of gross for expenses in a well managed business. Tack another 25% on top of that and it leaves you with 45% to take home. If the real estate man is this desperate for work, give him a trimmer and blower and put him to work!

kleankutslawn
02-28-2008, 11:09 PM
any more opinions?

kleankutslawn
02-28-2008, 11:11 PM
Real estate must be doing pretty bad if somebody wants to leech off of a lawn care guy like this. Whatever properties he could get you, you could get yourself if you tried. I wonder how the property managers would feel knowing they are paying $100 but only getting $75 worth of service. I've heard a few guys say you can always count at least 30% of gross for expenses in a well managed business. Tack another 25% on top of that and it leaves you with 45% to take home. If the real estate man is this desperate for work, give him a trimmer and blower and put him to work!

lol!!! thanks for your opinion

Big C
02-28-2008, 11:12 PM
What is he really doing for you that you cannot do for yourself.......i'd tell him to suck a fat one!!!!:laugh:

IMAGE
02-28-2008, 11:14 PM
10% and put a cap on it to $250 per referral. He is allready spending time trying to sell whatever he is selling them, it is only a few min of his time to give them your card and a reference.

Weekes
02-28-2008, 11:19 PM
Not sure what you are looking for in getting more opinions. Having people find clients for you is great, and in my opinion worth giving them something for their effort and maybe they will bring more.

BUT, no more than 10% for one season only. Turn the tables on him and ask him if he will give you 25% of the next house sell you refer to him. If he is smart he will get your meaning and understand that the 10% finder fee is more reasonable.

Golden Oak Web Design
02-28-2008, 11:20 PM
I have a guy in the real estate industry that aproached me today about doing some commercial marketing for me,i have known him for years & he has sent me alot of leads.The problem is he wants 25% of the gross off of every account he gets for my business.Is this a fair price?If not what is?
No I do not understand why it is that people think that you work and they get paid. I shout be one set price per lead no matter what the job. That is what fair is.

kleankutslawn
02-28-2008, 11:23 PM
thanks guys i will let you know what happens tomorrow?

TREEGUARD
02-28-2008, 11:26 PM
Good luck with it.

Golden Oak Web Design
02-28-2008, 11:30 PM
Same price for referal every time $80 is a fair price for most people.

bigw
02-28-2008, 11:37 PM
I made an agreement with my tree guy that any job i get him he pays me 10% of the total bill unless he wants me to help with the job then we split 60/40 him getting the 60 since its his equipment and his knowledge.
We are both happy with the deal and in fact i got him a job today from a lawn care account i signed up today {60.00 a week} 14000 sq ft :weightlifter: she wants a huge tree cut down and taken away so i will make 140.00 for my 10% so im cool with that.