Discussion in 'Business Operations' started by grassmasterswilson, Sep 21, 2012.

  1. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Messages: 4,988

    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.
  2. phillie

    phillie LawnSite Senior Member
    Messages: 861

    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.
  3. 32vld

    32vld LawnSite Gold Member
    Messages: 3,983

    I think you have to 1099 once you gp over the $600 mark in any one year.
  4. phillie

    phillie LawnSite Senior Member
    Messages: 861

    No, it's definitely weekly.
  5. wbw

    wbw LawnSite Fanatic
    Messages: 6,168

    Now, that is some funny shat right there.:laugh::laugh::laugh:
  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    1099 are sent out at the end of the year like W-2's

    The threshold is 600.00 for the year.
  7. Durabird02

    Durabird02 LawnSite Member
    from Indiana
    Messages: 153

    X2 That is correct.
  8. Burnie

    Burnie LawnSite Member
    Messages: 82

    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
  9. phillie

    phillie LawnSite Senior Member
    Messages: 861

    Hahaha, yeah. I was confused. I pay the guy weekly but 1099 him yearly.

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