Announcement

Announcement Module
Collapse

How To Post Images

Want to know the how to upload images to your posts? Image Posting Tutorial
See more
See less

Fair Kickback/Referral Fee?

Page Title Module
Move Remove Collapse
X
Conversation Detail Module
Collapse
  • Filter
  • Time
  • Show
Clear All
new posts

  • Fair Kickback/Referral Fee?

    So I've been out hitting the pavement, cold calling etc. to drum up some business and have discovered many of the plumbers, electricians, carpenters etc. want some kind of kick back fee. Problem is...I really can't see going more than 10% on ANY job. It just seems pointless then. More than a few not only reject the 10% but also my minimum charges. Apparently I'm too expensive And also, a 10% kickback for simply handing someone my card isn't worth it to 'em. Why are some people so damn greedy wanting something for nothing??? I'd rather just dump more money into direct mailers to get business. This business of knocking on doors is for the birds. Any thought's?

  • #2
    Re: Fair Kickback/Referral Fee?

    i don't do referal fees/commissions, etc. but the 3 folks that send me the most referals i'll do a personal cleaning/camera for free, if they need it. i also refer them to clients so it's win - win.

    steve
    In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

    Comment


    • #3
      Re: Fair Kickback/Referral Fee?

      There's a business club I belong to and we give each other business for nothing in return. There's no costs or fees with this, we just have to have a specialty trade. No general contractors allowed. I have to refer hvac jobs to the other guy even though I do hvac myself. No one checks on us to make sure we're honest so I use "you give me a job, I give you a job".
      Buy cheap, buy twice.

      Comment


      • #4
        Re: Fair Kickback/Referral Fee?

        I do my own advertising, and my repeat customers love me and give me tons of referrals.
        I have given gifts to certain people who really gave me a lot of referrals, but I have never paid directly for them, and I probably never will.
        Water Heater Reviews & Water Heater Information

        Comment


        • #5
          Re: Fair Kickback/Referral Fee?

          So, you get a $10,000.00 job out of me, now I get $1000.00 for setting you up with a possibility...

          I never do this to anyone, but if you'd like to get me some MN Twins/Vikings tickets or a gift cert. to a restaurant, now that sounds more like it.

          Never deal with a greedy person, something reasonable is the answer, shoot even a Thank You would do it for me.....

          That thousand bucks can get you filled up at any gas stations....
          Great Link for a Construction Owner/Tradesmen, and just say Garager sent you....

          http://www.contractorspub.com

          A good climbing rope will last you 3 to 5 years, a bad climbing rope will last you a life time !!!

          Comment


          • #6
            Re: Fair Kickback/Referral Fee?

            Thanks for the replies.

            As an employee, it seemed the standard was for the customer to call (contractor or not), I give price, I do work, customers pays. NOW, being a sheep among the wolves so to speak, these same people call and it's the other way around. Not all, but a good many of 'em. "Ah so you went out on your own" they say. I had a "friend", someone whom I went to high school with, played drums together, later to become a G.C., one time ask me what I charge. Then, in the same breath, ask me, "what's my price?". He wouldn't use me unless I did the work at his price. . Nice friend huh??

            Honestly, I don't like the idea of kickbacks unless, like someone said, results in a bunch of guaranteed jobs. Even then, I like to do the work first then give a discount, not the reverse. Btw, I see a discount the same as a kickback. Either way it's money given away.
            I've even had people tell me they can line me up work for a 50% cut.
            WTF?
            The guy I'm getting (was getting) about 80% of my work from wanted to pull that 50% crap. I told him to pound sand. My truck, my tools, my gas, my labor, my money, 50% my AS$ .


            So, you get a $10,000.00 job out of me, now I get $1000.00 for setting you up with a possibility.
            garager:

            I'm a one man gig. I do drains and minor plumbing nowadays. A 10K job ain't happening for me. I'm talking about day-to-day service calls. A job that big would probably go back to you.

            Comment


            • #7
              Re: Fair Kickback/Referral Fee?

              I use to have people ask me all the time if I was going to pay them a fee for referring their friends to me. I would respond by asking how much I should add to the friends job for the fee I was paying? That usually ended the discussion.


              Mark
              "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

              I never lost a cent on the jobs I didn't get!

              Comment


              • #8
                Re: Fair Kickback/Referral Fee?

                I thought kickbacks are illegal? Silly me.

                Comment


                • #9
                  Re: Fair Kickback/Referral Fee?

                  I took my contractors test almost 30-years ago but back then you were allowed to give a "gift" as long as it was not worth more than $5.00.

                  Mark
                  "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

                  I never lost a cent on the jobs I didn't get!

                  Comment


                  • #10
                    Re: Fair Kickback/Referral Fee?

                    Most good contractors will give you work without asking for a referral fee. People refer other people because they like to help one of the customers or friends. Even though, I offer referral fees between 5% to 10%, I get almost zero from the contractors I make this offer to. Although, I get many referrals from contractors who do not want a fee.

                    What kind of double talk is this.

                    Comment


                    • #11
                      Re: Fair Kickback/Referral Fee?

                      Originally posted by Masterplumb View Post
                      I thought kickbacks are illegal? Silly me.
                      I guess "kickback" is the wrong term to use. I'm not suggesting THAT kind of kickback, under-the-table deal with the intent to defraud the IRS or someone else.
                      I'm talking about legitimate referral monies as documented income. Last I checked that's not illegal. Maybe I'm wrong.

                      Comment


                      • #12
                        Re: Fair Kickback/Referral Fee?

                        An electrician in my neighborhood has given me several referrals. All are friends of his, or neighbors of his friends. I am thankful that he trusts me to work in their houses. I delivered a 12 pack the other day with business cards...and I make an occassional phone call saying thanks. Other neighbors throw the word out, more 12 packs. No one has asked for a thing, I just feel its important to remember people who think highly of you.

                        Comment


                        • #13
                          Re: Fair Kickback/Referral Fee?

                          Never given one, never taken one. Keeps business relations simple that way.
                          Distractions are everywhere, don't lose sight of your dream.

                          Comment


                          • #14
                            Re: Fair Kickback/Referral Fee?

                            I sent some guy tons of work when I got busy with my 2nd biz,


                            still waiting on that percentage based check he told me I'd be getting for all the work he gained in that move.



                            Instead of money, I like to bank favors over cash. Seems to be very well thought out because then you can instantly obligate them to do something for ya because you lined their pockets.


                            That beats green bills hands down imo.
                            Northern Kentucky Plumbers Twitter Feed | Plumbing Videos

                            Comment


                            • #15
                              Re: Fair Kickback/Referral Fee?

                              Originally posted by DUNBAR View Post
                              I sent some guy tons of work when I got busy with my 2nd biz,


                              still waiting on that percentage based check he told me I'd be getting for all the work he gained in that move.



                              Instead of money, I like to bank favors over cash. Seems to be very well thought out because then you can instantly obligate them to do something for ya because you lined their pockets.



                              That beats green bills hands down imo.
                              That is how I like to do business.
                              Great Link for a Construction Owner/Tradesmen, and just say Garager sent you....

                              http://www.contractorspub.com

                              A good climbing rope will last you 3 to 5 years, a bad climbing rope will last you a life time !!!

                              Comment

                              Working...
                              X