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  #11  
Old 09-25-2012, 11:42 AM
grassmasterswilson grassmasterswilson is online now
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From my post it says this guy is temporary as I can't employ him full time. So he isn't going to be a full time employee. If I get in a pinch I might call him and ask for some help.

What he would be doing would be working commission only. Maybe he talks to some business owners or a neighbor.

From my view, I would gladly pay him a small commission if he called me and said... "call Ms. smith. she wants to talk about her lawn." So my guy has already sold her on considering a change and more than likely spoke highly of me. All I got to do is go meet her and give her a price. If my prices are competitive it's probably a sure thing.

It would be very similar to a customer passing your name on to a friend. I give that customer a discount.

So maybe you guys don't pay for referrals, but seems like a cheap way to get new business to me. It would target a specific market and only customers that I want and is a lot cheaper than a round of mailers.

Thanks for the input.
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  #12  
Old 09-25-2012, 09:23 PM
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phillie phillie is offline
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wilson, I have a buddy that I pay 7% on what that customer brings in. I do 1099 him if I pay him more than $600 in a week. The price sheet I gave him has a 7% increase on my price list and he still gets me jobs. Hope this helps as it seems the others are just posting to try and pick you apart.
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  #13  
Old 09-26-2012, 09:40 AM
32vld 32vld is offline
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Originally Posted by phillie View Post
wilson, I have a buddy that I pay 7% on what that customer brings in. I do 1099 him if I pay him more than $600 in a week.
I think you have to 1099 once you gp over the $600 mark in any one year.
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  #14  
Old 09-27-2012, 10:50 PM
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phillie phillie is offline
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Originally Posted by 32vld View Post
I think you have to 1099 once you gp over the $600 mark in any one year.
No, it's definitely weekly.
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  #15  
Old 09-28-2012, 06:53 AM
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wbw wbw is online now
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No, it's definitely weekly.
Now, that is some funny shat right there.
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  #16  
Old 09-28-2012, 07:34 AM
Duekster Duekster is offline
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1099 are sent out at the end of the year like W-2's

The threshold is 600.00 for the year.
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  #17  
Old 09-28-2012, 12:58 PM
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Durabird02 Durabird02 is offline
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Originally Posted by Duekster View Post
1099 are sent out at the end of the year like W-2's

The threshold is 600.00 for the year.
X2 That is correct.
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  #18  
Old 09-29-2012, 06:23 PM
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Burnie Burnie is offline
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Originally Posted by grassmasterswilson View Post
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
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  #19  
Old 10-03-2012, 04:54 PM
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phillie phillie is offline
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Now, that is some funny shat right there.
Hahaha, yeah. I was confused. I pay the guy weekly but 1099 him yearly.
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