Originally Posted by grassmasterswilson
So what do you think the going rate for referrals is? 10%? flat $50-100? Just curious what rate would motivated him without breaking the bank on my end.
What you need to look at is, is it a one time job, or a recurring job. On a recurring job I would have no problem with 10% OF THE FIRST SERVICE even if it cut into my profit, I'll make it up in the long run with a new regular customer. On a one time job you need to look at how much you are going to make after all expenses and pay accordingly, but 10% is still possible if your pricing is right. Remember you would have never gotten the job without him and would not have made anything. As an example on a one time job of $1000, after ALL expenses (all labor including yours, material, insurance, gas, repairs, company investment, etc.) you cleared $300, if you paid him $100 you would still clear $200 on a job you would not have gotten without him. If you pay him good I feel he will work harder to get you more work, just don't overpay him and loose money. JMHO