Pandora's Box

Foundation Man

OK... here we go. I'm really curious to get some good and bad feedback on this topic. We have a residential foundation repair company. I carry around business cards and information for all sorts of people and tradesmen that we refer to our customers. While we want to help make life easier for our customer, we organized this process and rolled it out with all our guys to also get referrals back from the other contractors that we referred. that is, We refer you out and you refer us out. Well, as you can imagine, we're pretty much the ones doing most, if not all, of the referring. My question is this.... What do you guys think about paying for referrals from other people. What is a referral worth to you all in each of your respective businesses that actually results in a sale and revenue/income to your business. I've almost decided to require a small referral fee to people that we constantly feed business to who don't refer us even 1 customer. What do you think? Am I being selfish? If not, what is fair? Thanks for your comments.



Foundation Man

kevjob

I can tell you as a GC I do all of the referring for my subs, I don't require any reciprication form them but I think in my position thats the way it goes.

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

vinylguy

quick question , have you ever called these guys to bring it to their attenssion? try that first, then just start referring someone else and do the company you refer now do the type of work that will get you the refferals?
i mean if they are a siding guy they propably don't run into alot of foundation work however if they are a home builder or an addition builder than they are more apt to get you your type of work
VINYLGUY

schatze

I believe in what comes around goes around. You're going to end up with the most business in the long run. Why not tell the subs to do the same thing you're doing? Have them pass out your information to their clients? Have you done that?

rbsremodeling

what's "attenssion" ?

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Foundation Man

Thanks for the feedback. Let's be honest, I'm not dying here or anything. So long as I can market my business, that's obviously what's important. Please understand, I wouldn't put a post on here unless I have addressed the issue with some of the people that get our referals. The truth is that some people out there just don't get it. They may be great at the trade or skill they do, but they can't really market their own business, much less market mine. Have I talked to some people... YES. Have I talked to everyone... NO. However, as you guys all know... some people are just not aggressive marketers. So with that being said, is it fair or unfair to request a referal fee for business they actually close? If so, what is appropriate? the fact is that our effort and advertising dollars are what gets these referals to other contractors. They don't just fall out of the sky. Also, even though it's not my work being done, if I refer them there is still an element of responsibility with my customer. Somethings got to give??? Right???


Thanks,
Foundation Man

BreyerConstruct

Hey FM,

I'm part of a referal organization (BNI) that strongly encourages referals.. .and I guess it works to some degree (hasn't turned a real job for us yet).

I've tried to get other trades to work with me @ passing referrals, and I've found the same problem- most don't obsess about their own marketing like I do about mine- and they definently don't truly care about MY business!

However, I still pass out their name... but I also keep my eye out for others that I can use, who might be more interested in exchanging marketing. Does that make sense?

I eventually want to do all of my work with like-minded businessmen/women, and will slowly replace the "regulars" until I'm there. If I can do it without burning any bridges, all the better!

HTH,
~Matt

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Custom Deck Builder Deck Designer Lancaster Deck Builder Berks Deck Cleaning
Breyer Construction & Landscape, LLC Facebook Page
www.BreyerConstruction.com

ChainsawCharlie

I refer my customers to contractors I know and trust, and they do the same for me. The contractors and tradesmen here are all pretty good abut it. The mutual referral is all the compensation any receive from each other.

I, onn the other hand, offer my customers 50-100 dollar "finder's fees" on any landscaping jobs I land as a result of their referring me. On the lawn maintenance side, If I pick up a new maintenance account from their referral, I give them $25. Five referrals also gets them a free week of service.

And I'm always telling them, "Don't tell ME I did a great job. Tell your friends and neighbors. I already know I did a great job."