Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 09-21-2012, 01:36 PM
grassmasterswilson grassmasterswilson is online now
LawnSite Gold Member
 
Join Date: Mar 2007
Location: nc
Posts: 3,169
Referrals

Got a buddy helping me do some seeding/aerating. He thinks he has some jobs he might bring my way. Thinks it would be mowing, applications, or seeding.

What kind of referral fee would you pay?
Posted via Mobile Device
Reply With Quote
  #2  
Old 09-21-2012, 02:17 PM
ELS Landscape's Avatar
ELS Landscape ELS Landscape is offline
LawnSite Senior Member
 
Join Date: Aug 2012
Location: Grand Prairie, Texas
Posts: 688
Friends do not charge friends referral fees.

Lunch and good times are often in order


Acquaintances maybe.. One value of one service after about the 3rd service perhaps but you need to see what kind of client they are going to be too.
Reply With Quote
  #3  
Old 09-24-2012, 10:57 AM
grassmasterswilson grassmasterswilson is online now
LawnSite Gold Member
 
Join Date: Mar 2007
Location: nc
Posts: 3,169
You wouldn't pay a friend a referral fee if he wanted to cold call or talk to some people/business owners? Doesn't cost you a thing unless you get the job.

What would you pay a sales person if you had one? Flat few on acceptance or percent of gross?
Posted via Mobile Device
Reply With Quote
  #4  
Old 09-24-2012, 12:46 PM
Dr.NewEarth Dr.NewEarth is offline
LawnSite Bronze Member
 
Join Date: Nov 2010
Location: Vancouver Canada
Posts: 1,406
In the current state of the economy, adding the cost of a referral fee to an estimate could break the deal with the potential client.
Reply With Quote
  #5  
Old 09-24-2012, 02:50 PM
grassmasterswilson grassmasterswilson is online now
LawnSite Gold Member
 
Join Date: Mar 2007
Location: nc
Posts: 3,169
I would only pay the referral of he brought me the work, it was accepted, and we did it
Posted via Mobile Device
Reply With Quote
  #6  
Old 09-24-2012, 06:35 PM
grandview (2006)'s Avatar
grandview (2006) grandview (2006) is offline
LawnSite Gold Member
 
Join Date: Jan 2006
Location: Lancaster N.Y.
Posts: 3,377
Helping as in paying him or helping as in doing a favor helping you out?
__________________
www.grandviewlandscaping.com
Reply With Quote
  #7  
Old 09-25-2012, 06:29 AM
grassmasterswilson grassmasterswilson is online now
LawnSite Gold Member
 
Join Date: Mar 2007
Location: nc
Posts: 3,169
What I'm trying to say is.... I have a friend who is out of work and needs some extra cash. He loves to talk with people and knows a lot of people around town. I've told him I can only keep him busy seeding for a short time and when the work runs out I can't keep him on. He has talked about reaching out to some people he knows and trying to get some more work, estimates, etc.

I told him I would pay him a referral fee for any jobs that he brought my way and I got. So he is strictly on commission and only gets paid based on a accepted estimate. He uses his own care, phone, etc. at no cost to me. Very similar to customer referrals that I do(give the customer a discount for referring a friend/neighbor).

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.
__________________
GrassMasters, LLC
Wilson, NC
www.grassmasterswilson.com
Reply With Quote
  #8  
Old 09-25-2012, 06:36 AM
Duekster Duekster is offline
LawnSite Fanatic
 
Join Date: Jan 2007
Location: DFW, TX
Posts: 7,971
The way you are framing it now sounds more like a commision as he is cold calling.
Reply With Quote
  #9  
Old 09-25-2012, 08:26 AM
32vld 32vld is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: LI NY
Posts: 3,013
Quote:
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.
I think you need to ask how salesmen are paid to get landscape work.

Then you leave out that if any new work he brings in will he be working on those jobs as well.

Then you leave out how much you net on these jobs. $5, $50, $500 impacts how generous you can afford to be because it appears you have empty slots in your schedule that your friend would be filling up.

Reply With Quote
  #10  
Old 09-25-2012, 08:38 AM
gcbailey's Avatar
gcbailey gcbailey is online now
LawnSite Bronze Member
 
Join Date: Mar 2012
Location: southern WV
Posts: 1,705
never really called it a "referral" or "finders fee" but one of the other LCOs we work with, our unwritten rule is.... if we get a contract client (minimum 10 day service) then we'll pay for a dinner for his family (Outback, Cracker Barrel....). Always just a nod of the hat to show appreciation.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 03:25 PM.

Page generated in 0.08210 seconds with 9 queries