PDA

View Full Version : Finders fee?


philmdamien
03-28-2008, 05:47 PM
I'm pretty much a mowing/maintenence only operation. I've sent a couple jobs to a local guy who does a more wide range of landscaping and he does good work. I think I'm gonna ask him for a flat percentage on each job I send him. I was thinking 10%. What do you guys think?

Mark Bogart
03-28-2008, 07:07 PM
Two ideas - He'll accept it or he'll tell you to take a flying leap. Does he send any work your way?

Lawn-Sharks
03-28-2008, 07:31 PM
Start out by asking if he likes getting the extra work from you and if he says yes then spring the 10% on him and see what he says? if its negative them tell him it was nice doing business with you have a great day and use someone else thats will to show some love to ya for sending them work...also 10% of the first billing sounds fair

Ric3077
03-28-2008, 07:37 PM
Tell him 10% if what you want...he can add it to his invoice if he can't afford it. Then the customer pays it. He will pay it though...I would pay someone $500 to bring me a $5,000 job no problem...

juststartin
03-28-2008, 08:48 PM
I would tell you to get lost. If he sends you yards its mutually beneficial. If not find sombody that will start sending work your way.

philmdamien
03-28-2008, 09:04 PM
No he's not sending any business my way. I don't think it's outrageous to ask for a cut, why give away good leads for free. I usually lay the groundwork for the deal...my customer's tend to go with him because they value my recommendation... if he doesn't to a good job I could look bad...why do all that for nothing?

AGLA
03-28-2008, 10:03 PM
Ten percent is project management pay, not referal pay. You are asking too much in my opinion. Ten percent is a reasonable profit on a job after all the bills, labor and other overhead is paid. You are essentially trying to get the same profit simply for telling someone about the job and introducing them.

The idea of adding ten percent to the bottom line so it does not cost your installer is flawed too. If he can get 10% more for no benefit to the customer, he should and would charge it to begin with. Your customer will get someone else if the price is inflated.

... and if he does not go for it? Will your customers find another installer on their own? Maybe one that also does what you do? You are covering your own butt by getting people in who will not take away your work.

If you can get it, go for it. I don't think you can on a regular basis.

Carolina Cuts
03-28-2008, 10:05 PM
question.
how many jobs/leads have you given to him thus far?

ECS
03-28-2008, 10:25 PM
A landscaper I refer gives me 5% of the job. He offered this to me, I did not ask. He does not refer any jobs to me, which is fine, because I am full as it is. He does however provide me with labor when I need it to get things done on my properties. I can call him any day of the week and have a crew by the weekend. I have gotten him lots of good size jobs, one was a total lawn, all the irregation and about 35 trees put in. When I called him for the job, I told him the lawn would be mine if he got the job. His reply was, "No problem". The lawn is a nice 40 min lawn for $75.

Anytime I can make 5% for a 2 min. phone call, I will gladly take it.

lawntactics
03-28-2008, 10:39 PM
Bid the job yourself and subcontract it out. If you are not putting any time into it yourself why ask for 10% at that why ask for anything at all. You can do better than 10% this way. I make 20% and then some on every job I contract out. If you are good at sales and bidding you can make great money.

kootoomootoo
03-28-2008, 11:14 PM
10% no

3-5% yes.

Ric3077
03-28-2008, 11:31 PM
Let me make my last post more clear...how we do it is we pay 10% of PROFIT for someone that finds us a job. And we receive 10% of profit if we send over a job. If the company profits $1000, me getting $100 is not going to kill them. Also if they add $100 to a job that was several thousand dollars the customer will not even notice. For mowing I give them whatever the lawn costs as a bonus after the customers 8th cut. If they send me a customer that has a $45 lawn, after 8 weeks that person that referred them gets $45.

Ric3077
03-28-2008, 11:33 PM
Bid the job yourself and subcontract it out. If you are not putting any time into it yourself why ask for 10% at that why ask for anything at all. You can do better than 10% this way. I make 20% and then some on every job I contract out. If you are good at sales and bidding you can make great money.

We do this often and works well...

Dreams To Designs
03-29-2008, 07:10 AM
AGLA is right on. 10% is what a project manager hopes to get for the total job. Any deal you make should be mutually beneficial. If you get 5% for an introduction that would be great, but I would hope you were able to establish a relationship with this other landscaper that helps you also. Perhaps, as mentioned before, he can supply you labor if you need it, spruce up your own home or office, or some other way of bartering. Demanding payment for a referral often leads to a fractured relationship, in my experience.

If the client trusts you, you are now leading all the necessary work and can take responsibility and the benefits that go with it or your just giving them referral suggestions.

Kirk

makely&son
03-29-2008, 06:27 PM
Where in NH are you??

stihljixxer
03-30-2008, 08:27 PM
10% for sure. I wouldnt hesitate to throw someone atleast 10% on a profitable job.

mybowtie
03-30-2008, 08:48 PM
I do this all the time.
If my customers want something done that I cant or dont want to do, Ill tell the contractor thats giving me the estamet that I want X amount for getting him the work. If he says no, then he aint gettin the job, and dosent get any money. Ill find someone else that will. Dont care if he adds it in to the cost, as long as I get my cut. No different then a GC.