Appropriate Commision ???

David_Hernandez

Employee X has connections which lead to our company potentially securing contracts for ground-up construction of at least 6 million in contract work and potentially more. (6M total in contract work, not 6M in profit).

As a reward, we offerred employee 10% of company profits resulting from the employee's connection plus $500 a week with no-obligations other than a good-faith presence (employee has no real trade skills).

Employee wants 25% of company profits resulting from this venture. (Based on 3 current partners plus him).

What does the board think. What is a fair industry standard?




Other information: He implied to our hiring customer that he was "not being taken care of" and the customer said to take care of our back-office or nobody gets anything.

Tscarborough

I think he is nuts, and you should consult a lawyer before pursuing his "connections".

Brushslingers

Walk, so what he has connections... obviously they need the work done. Someone tries to strangle me after I give them 10% and 500 a week to watch... i'll strangle them before the job is over fo reel.

ps your rates for commis is more than fair.

__________________
Benn

Cole

Merged Threads.

Please no double posting.

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Tulsa's Leader in Outdoor Living Construction | Facebook | Tulsa Pergola Builder | Tulsa Outdoor Kitchens

PipeGuy

I think employee X is a moron. A % of the profits?! How does he expect to audit that? Do you expect to turn your books over to the chump?

If it were me, I'd offer one-half of one percent of the ORIGINAL contract price - half paid upon signing and the other half paid upon final payment. On $6M that's $15K out of your pocket until final payment.

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Fortunately I keep my feathers numbered for...for just such an emergency. -Foghorn Leghorn

tgeb

The more I read this phrase, the more I think "kickback".

It sounds as if you "customer" and your "salesman" have some sort of relationship established.....one I would stay out of if I were you.

What happens when you are 90% complete and suddenly 25% cut is not enough for "them" but they owe you close to a million bucks, do you pay more?

My customers do not dictate how my employees will be compensated.

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Tom

www.gebcon.com

RobertCDF

Are you starving for work? Is this the only job out there? If you dont need it and you can stir up your own jobs then fire the employee and continue to pursue jobs.

(If I had any employees) and one brought me a project... I would give him maybe 1% of contract price if that was not good enough... I would just continue on in my ventures.

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Robert Shaw
Colorado Springs Custom Decks
Colorado Custom Decks
Custom Composite Decks

HUDSONVALLEYEXT

WHERE ARE YOU LOCATED David_Hernandez

KENNEDY

We offer any employee 2% of the labor total for any work brought in to the company plus they get the hours by having steady work. 25% of proffit is crazy!

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Sean Kennedy
St. Louis Painting Contractor
Kennedy Painting LLC

nadonailer

Sounds kinda like blackmail to me... Better to stay away regardless of the monetary opportunity IMHO

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"History does not long entrust the care of freedom to the weak or the timid”.
Dwight D. Eisenhower

Quote

What is your average cost per lead if it was not a referral? If you did not spend any advertising $ acquiring the contract, 25% may be a workable number. However, your employee does have some nerve to demand that much. It would be 1 thing if you chose to award him that but it's another to demand it.

crawfish

If you do give the 25%, I need to come work for you!!!!!!

25% of the company profit is crazy!!!!!

72chevy4x4

I think 10% is more than fair. This employee could be a janitor for all we know who knows of some other guy who needs buildings constructed. You may end up with a problem when it comes time to determine what 'profit' is. Maybe a finders fee would be easier-payed upon completion of the project.

alter_ego

Emp x? Put a dollor in his shirt pocket and kick him in ths B@LLS.
Stay the course on you work.

boman47k

What was his position or duties before he made this contact? How long has employ been with you?

PressurePros

You lie in bed with dogs you get fleas. Sounds very shady. Are the words "union" or "waste management" in context?

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA