Commision On Bringing In Jobs

CertaChange

Hello, Im just wondering,

HUDSONVALLEYEXT

where are you located?

Danahy

Bringing in a job is worth the advertising budget for that job, perhaps even a slice of some of the leg work costs. You can't necessarily charge more because a job was brought, like wise, I don't think the guys doing the sub-work will want to earn less to cover for the guy that brought the job...

CertaChange

[quote=Danahy;181777]

Tscarborough

For a job in the million plus range, one person does not and can not sell the job. It takes a lot more than "selling" to accomplish that goal. In my experience, that type of position is salaried and bonused, based upon company performance, not an individual sale.

win4win

We paid a $10,000 fee for a $3,000,000 deal about 3 years ago. No other experience with finder's fees/commisions etc.

Tscarborough

Finders fees are different, and imply that you brought the deal from outside the company.

john elliott

I can answer this one, but the answer depends on whether or not this job that you brought in was a one off or not?

If it was a one off, never likely to happen again, maybe something that came through a family connection etc, then the percentage you earned is, and should be, nothing. A thank you maybe.

If, on the other hand, you went out and found this job in the way in which a professional salesman would, researched your market, found your prospect, sold the job, and were going to do it again next week, then your commission shold be whatever you negotiated with the owner of the business you are working for. You could let him have this first one as a demonstration of what you can do, and make sure you get a good rate. Can't give numbers, of course, because that will vary depending on how profitable the job is going to be, and that will depend, of course, on how much you sold it for. When you sold this first job, was it you who decided the price?

John

__________________
Ed the Roofer said "John too, in his crass and blunt demeanor.............."

dirt diggler

do you mean commission as in net profit???

(I've heard commission used as a misnomer for profit before)


if so ... only one person can/should answer that -- and that is the GC

Grumpy

Our focus is primarily jobs that would be small compared to your sized jobs, but let me explain. I pay my estimators a % of the net sale for all jobs we classify as "residential" After the job grows into what we classify as "commercial" either by size or $$$ ammount the commission structure changes and they are no longer paid based on net sale, but rather gross profit for that job.

However it is my experience that a company that focuses on what I call "commercial" uses a different commission structure. Often it is a salary with a bonus. The bonus can be based on net or gross but that's up for you an your accountant to decide.

If anyone brings me work as in a referral I am happy to pay them UP TO what my average coist per sale ends up being. What I mean is I know what my advertising costs and I know about how many jobs I will do this year so I divide that and know how much my cost per sale will be. If they are bringing me the work, there is no advertising and I am MORE than happy to toss them this $$4 instead. Why not?