Finders Fee?

Discussion in 'Business Operations' started by matt25738, Dec 26, 2012.

  1. matt25738

    matt25738 LawnSite Member
    Posts: 50

    Does anyone offer a finders fee on landscape jobs?? I'm working with a landscape designer who is wanting 2.5% off the top for a finders fee. Any thoughts on this??
     
  2. Ben Bowen

    Ben Bowen LawnSite Bronze Member
    from PNW
    Posts: 1,051

    We have similar arrangements with designers/architects for landscape install projects. Not for maintenance though. The % depends on level of involvement. At 2.5% I would think you would be getting a strong recommendation and hopefully no one else would be bidding on it.
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  3. alldayrj

    alldayrj LawnSite Gold Member
    Posts: 3,750

    I do 1% for a referral (word of mouth, handing off a card) and 5% if they actually sell the job(go measure it, hand off estimate, seal the deal)
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  4. matt25738

    matt25738 LawnSite Member
    Posts: 50

    Do you do your referral off the top line or bottom??
     
  5. alldayrj

    alldayrj LawnSite Gold Member
    Posts: 3,750

    The top. I had a customer refer me a 6k patio. They got $60 for a nice local restaurant. I prefer gift certificates since its more special than cash to a homeowner. Sometimes its a gas card or one of those amex cards. Landscapers or other businesses that pass me work get cash because thats what theyre in it for
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  6. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Posts: 446

    I wouldn't have a problem with paying 2.5% finders fee if they are me. Especially if they have designed the work.

    I have a landscape contractor that refers maintenance work to us and a realty/property manager that refers maintenance customers to us and both of these get a nice restraurant gift cert. ($50).
     
  7. matt25738

    matt25738 LawnSite Member
    Posts: 50

    Thanks, I appreciate hearing that I'm not getting screwed by the finders fee. For your maintenance contracts, do you give a flat $50 finders fee no matter what size contract you get or do you do it based on a minimum or above size property??
     
  8. adam.neusbaum

    adam.neusbaum LawnSite Senior Member
    Posts: 622

    I do $20 to a local spray guy for every topdressing referral, he's happy & I'm happy. Cheap advertisement.
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