Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 19 of 19 Posts

·
Registered
Joined
·
2 Posts
Discussion Starter · #1 ·
Hello guys. Thanks so much in advance for any help ;)

I have a problem.

I have a new guy that I'm providing some leads and referrals to for business that I cannot do myself. He does plumbing.

He has agreed to pay me a small commission of every job that I send his way (1-2 per week). However, I need some way to make sure that he's paying me the correct amount.

Does anyone know of a cool app or another type of solution that will allow me to make sure that I'm being paid the correct percentage and hold him accountable? (He wants a solution too - and is very open to the idea).

Thanks so much!

Best,

-Andrew
 

·
Registered
Joined
·
585 Posts
You are never going to know. It's going to be on the honor system. If you can't trust him, then you know deep down what has to happen.
I agree...

If you are referring clients to this guy then I imagine you know he is a legitimate and trustworthy guy... Otherwise why would you be referring clients to him?
 

·
Registered
Joined
·
1,560 Posts
I wouldn't be expecting anything other than reciprical leads.
Maybe a case of beer, unless we're talking thousands.
 

·
Premium Member
Joined
·
1,224 Posts
I refer some roofing work to a local big shot, he pays me by the square. I've never questioned him, if I had to I would just stop sending him the jobs I don't want. He knows better than to screw me I think, I have sent him a dozen jobs this year. I'm free advertising, sales and follow up. Average job is probably 30 square'ish. Trust is key in the referral game.
 

·
Banned
Joined
·
2,247 Posts
Red Beacon, the lead company that is working through Home Depot called me a few years ago, offered me leads and told me that I could pay a percent of the gross sale. I thought that was strange because the rep told me that what I paid was on the honor system.

It sounds like you are concerned (maybe worried) about getting paid the right amount. If so, I believe that honesty is the best policy and you need to tell the person that you give leads to that business is business, you are concerned about honesty and you need to have a system to keep everything in check so you feel comfortable that you are paid the correct amount and tell him that without a good system you won't feel comfortable and may feel reluctant to keep giving leads. He should agree and understand.

The best system I can think of is; send every customer a letter or post card that customers have to fill in and return to you. On the post card, you can ask about the customer service and you can tell the customer something like you need to double-check your records for accuracy and they need to fill in the type of work performed and the total contract/invoice amount.

The problems that will be impossible to resolve will be repeat business and referrals. A percent of our major jobs start as $69 service calls and within weeks or months turn into jobs in the thousands of dollars. So, you get you small percent on the service call and see nothing on the large job. What happens when your contractor does jobs for the same customer at several different addresses? You need to have every detail in writing and don't make any bones about discussing these issues with your contractor.

This is what I tell people I do business with.

"Say what you mean and mean what you say"

If you tell me something then, "say what you mean and mean what you say" because if you tell me that you are going to pay me a specific percent and I find that you cheat me out of one penny then you will never get another lead from my company (and you won't).

Letters, postcards, spot-check and follow up. If you find you were cheated out of one penny then you stop.
 

·
Registered
Joined
·
819 Posts
i think you need to either trust him or not.....unless you want him to send you his quickbooks every week and also check his wallet for cash

there is no way you can make sure of anything...

be happy with what you get....if you think he's stiffing you then find someone else to give leads to.....are you in WI? send the leads to me...ill gladly pay you
 

·
Home Repairs
Joined
·
291 Posts
A copy of a signed invoice would be the only way to tell..... along with a call to the customer. But that would be way too tacky for my taste.
 

·
Registered
Joined
·
758 Posts
Hello guys. Thanks so much in advance for any help ;)

I have a problem.

I have a new guy that I'm providing some leads and referrals to for business that I cannot do myself. He does plumbing.

He has agreed to pay me a small commission of every job that I send his way (1-2 per week). However, I need some way to make sure that he's paying me the correct amount.

Does anyone know of a cool app or another type of solution that will allow me to make sure that I'm being paid the correct percentage and hold him accountable? (He wants a solution too - and is very open to the idea).

Thanks so much!

Best,

-Andrew
YOU SUCK BALLZZ

why does anyone "OWE" you anything??? Why do you need to get a kick back in order to be a nice guy

everyone thinks every "OWES" them something I'm glad the guys I work around, fellow contractors, subs, the competition etc.... who pass my name around as a referral don't ask for anything other than friendship and the understanding that we're all in this together when they give my name out to someone

Get over it, do a good turn, if you trust someone and want to see that person succeed in life pass their name out and refer them and know that your a better person for doing that

hold yourself accountable ok????
 

·
Registered
Joined
·
819 Posts
jobs are worth $$...i dont see any issue with the kickback

most lead services charge you for leads....even when you dont get the jobs

this guy is charging for actual jobs.....why should he give them for free...

i DO pass on some jobs to friends for free....but in return they help me trouble shoot things i dont know enough about.....nothing is free but a Mothers love...

business isnt about feeling about being a better person...its about profit....

i would never expect to get jobs for free from another plumber.......if i did id still send him a kick back anyways

just had a carpenter friend refer me and i got a $7k job....im sending him $100 for his trouble....its just the correct thing to do....
 

·
Registered
Joined
·
7,076 Posts
Try to trust him, but use your judgment about whether the amounts he reports to you make sense. Over time, your greed and his will make you trust him less, and you spot check the jobs a few times. You learn (correctly or incorrectly doesn't matter) that he didn't report some income to you and he decides (correctly or incorrectly) that you're a greedy, untrustful bastard. The two of you have a meeting, pull out your knives, and kill the goose that laid the golden eggs. That's how it usually plays out, I think.
 

·
Registered
Custom
Joined
·
13,679 Posts
If you can't trust him to send you the "correct" amount, how can you trust him to tell you he actually closed or didn't close a deal?

Do you plan on following up with all the leads you give him "300 miles away"?...

IMHO, a flat-fee solves all your trust issues except knowing whether or not he is being truthful whether or not he closed a deal...
 

·
Making a living
Joined
·
236 Posts
I pay a flat fee per referral unless the customer really isn't looking for work or has a contractor already. What I do with the leads is my own business as I always work with my customers for a long term relationship. Some I don't do anything with as they are outside of what I'm looking for
 
1 - 19 of 19 Posts
Top