Need Help ... How To Pay Referrals??

Mud Master

Sounds like a third party salesman with office duties.

I would have no idea cause I do not do anything like that..maybe anywhere from 15-30% of the total contract?!?

Wait for some other residential guys to respond, they will know alot better than me.

However, if he will be doing all the other work aside from just sales, I would put him on as a part-time office manager and than any business he gets for you, just add that commission to his weekly pay.

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North Country

15-30% , So If I referred a 100,000.00 job I would get 15-30k just for doing a referral and some paperwork? Count me in!!

Mud Master

Lol, thats why I said I have no idea, lol.

Ima commercial and new residential(high end and production) man myself, no remodeling. I have no idea about commission or how it works...

When I was starting out, if someone gave my a referral, all that got em' was a thank you and a referral in return if thier services were needed.

Damn, hope he didn't take my advice, or someone is gonna make alot of easy money!

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gman1966

Small jobs $50 Gift Card usually to a Restaurant and big jobs $100.
Hey it says thanks!!!

AaronB.

Half the sales commission.

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AaronB.

What type of work?

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dirt diggler

depends on how much square footage we're talkin

Hand Bangin

If he/she is going to be responsible for the entire job process from start to finish I would put them on a commission based on volume/sales dollars.

I would never pay any sales rep more than 50%.

Remember this is your rep on the line.

parkerfairfield

I had success with this -

The pure commission guys got:
a) my lead = 8% revenue
b) their lead = 10% revenue
REVENUE included change orders

They were shown how to calculate PAR, responsible for bidding the job, getting approval of price (with pics) PRIOR to presenting and signing job w/ customer.

IF they sold the job above the PAR price, then they got a large percentage of the amount above par.


PAR was (materials+labor+workers comp+fees)x(Company Overhead+Profit)

PAF

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