Finder's Fee -- How Much?

nervx

Greetings All,

I'm a landscaper in Southern California, and I'm wondering what would be fair to ask as a finder's fee, in the following scenario:

A potential client responded to my advertising, in search of a home makeover. The client advised that they were looking for landscaping, as well as work to be done on the exterior of the house and driveway, etc. I discussed their needs with them, looked at pics, and went back and forth with them via email over a period of about two weeks.

Realizing I might need to work with another contractor to meet their needs, I searched out and found someone who specialized in the services the client needed, that were beyond my abilities. The contractor and I decided that we would collaborate on the job and visit the client together, which we did.

Once at the client's home, it became apparant that they really did not need much, if any landscaping, and that my collaborator would be picking up the vast majority of the project. He agreed to pay me a finder's fee, as a percentage of the money he earns on this gig.

My question: What percentage is fair to ask in this scenario? Also, for future reference...are their any guidelines I should know about in regard to finder's fees?

Thanks so very much!

john elliott

I think enough money to cover your time, both the time at the HO's house and the research you did, at your normal hourly rate, would be about right

Welcome to the forum, BTW

John

RobertCDF

If I were you... I would become the GC on the job and use the other contractor as a sub. This way you can mark up his bid by 10-15% and make money while he works and you are onto another job.

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Robert Shaw
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A+Carpenter

That is what I am talking about. Good bit of addvice for him Robert.


Why eat McDonalds when you are the one that found the lobster?

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mdshunk

Since the other contractor is not subbing for you at this point (which is what should have happened, but didn't), you need at least a salesman's commission. That would likely be 10-20%. I'm just guessing... you'd know best what a salesman's commission is in your area.

Mark Parlee

three to five percent and walk away if you don't have much time in it

Mark