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paying referrals

Discussion in 'Lawn Mowing' started by EOS, Jul 9, 2008.

  1. EOS

    EOS LawnSite Member
    Posts: 23

    I have a landscaper in my area that does high end homes and can get me several homes for lawn care but he would like to talk to me about paying him a referral, looking for everybody's idea on what I should pay him I have never paid a referral before, I was thinking of 10% of the monthly contract.
  2. RyKR

    RyKR LawnSite Member
    Posts: 19

    I think it depends on how much business he can get you. It is just like being in a band and paying promoters to be booked with a good show. If the benefit outweighs the cost it is worth it. A landscaper would probably be able to send you alot of business.
  3. JeffNY

    JeffNY LawnSite Senior Member
    Posts: 257

    Guy I know hooked me up with a clean up job for $300, then the guy across the street called us for a $175 mulch job.

    I gave the guy a 30 pack of Miller Lite.
  4. caterpillarcat

    caterpillarcat LawnSite Member
    Posts: 21

    if u do referrals make sure u work out an agreement ahead of time. are u giving commission on one job or for one year or forever? whatever the case just make sure you guys are all on the same page. this will prevent any arguments later on.
  5. EOS

    EOS LawnSite Member
    Posts: 23

    i was thinking about 10% of the first year contract only
  6. johnnywill08

    johnnywill08 LawnSite Senior Member
    from MA z6
    Posts: 372

    a referral is usually like 2-5%, if all they're doing is giving your name. no way i'd give anyone 10% for just saying my name. personally i'd flat rate each job, maybe give him the cost of one cut, one time- maybe.... i'd refer and get referrals all the time, and while others might disagree, i don't give or get money, then again, i'm a what goes around, comes around kind of guy. tell him you'll refer everything his way for the line of work he does.

    i hooked up a friend who does sprinklers with 5 of my clients, didn't expect a dime. just not my way.
  7. Scagguy

    Scagguy LawnSite Bronze Member
    Posts: 1,522

    I would ask him if that's what he really wanted. But, before I did that, I would ask what he specializes in. Maybe it's something you don't offer or don't want to do. In that case, why trade dollars? I would network with him and send business his way. I do that with a couple of other lco's in my area. Sure we are each others competition, but there's things they'll do that I don't want to hassle with and vice versa. There's no scorecard, but I make sure I hold up my end of the bargain.

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