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Finders fee or referral

7/28/17       
Kevin Member

Whats the difference? When a designer brings you in on a job, it seems to be commonplace to give them a cut. What about a builder? What about someone who isn't involved in the job but gives your name out? The latter is what I'm dealing with recently. One guy in particular has given my name to homeowners or builders that he knows are looking for cabinets. That is great, and I certainly appreciate it, but he is always looking for compensation. Is that just the way it works? If so, than so be it, but if a customer of mine is looking for a plumber, and I give them a name, I've never gone to that plumber with my hand out. What is the etiquette here?

7/28/17       #2: Finders fee or referral ...
rich c.

Do you have too much work? If you don't, pay up. Don't you have advertising in your overhead numbers? If you do, it's not costing you anything. If you don't, add it in. Legally, you should ask him for his social security number and tell him he will be getting a 1040 at the end of the year since this is a business expense for you. It's cheap advertising in my book. My business depends heavily on word of mouth.

7/28/17       #3: Finders fee or referral ...
Leo G

Depends on what occurred. Did he just give them your card and you sold the job? Or did he bring you onto the job and dealt with the client and all you needed to do was the work.

The 1st one is a small finders fee, he handed out your card.

The second one should get more compensation. If he's dealing with everything and all you need to do is the work, that's worth something.

8/1/17       #4: Finders fee or referral ...
Kevin Member

Thanks. This would be one of those 'just gave out my card' situations. I have no problem paying him, but I get almost all word of mouth jobs, and he is the only one who asks for payment. How much is standard in this situation? Percentage? Just want to know if I'm getting taken advantage of I guess.

8/1/17       #5: Finders fee or referral ...
Leo G

You gave them my card is 3% or $50, whatever is more.

8/12/17       #6: Finders fee or referral ...
steelie mark

I really hate this situation- I've had too many guys with their hands out for just mentioning me or giving someone my card; and I don't remember but one resulting in work.
The situation there was he worked at the place and had me build in an extra amount to give him. I did it reluctantly as he was my partners buddy.
A year or so later, my partner moved out of state and the company called me for more work directly, the original contact was let go six months earlier I learned.
He showed up at friends shop who was making up a laminate counter for me and wanted 10% of the gross on the second job. I said no and it actually got violent.

So, give out my card and a strong recommendation and I get the job and the client says it was because of you, yeah, I'll be sure to gift you. Just hand out my card? I'll buy the beer next time we go fishing.

8/13/17       #7: Finders fee or referral ...
Adam

Unfortunately this never amounts to a quid pro quo situation.

I want 10% of gross & or profit. What about the loss when the customer won't pay.

Its all a line of bs. Do we count favors when I refer to him? Unfortunately, I would never refer him because his work sucks and he's a conman.

It's like he wants the 15-20% builder's markup for doing nothing other than giving out your business card.

If they are so deserving then they must have some money in the game. They had better be a architect, builder, or designer. They can ask a favor like please fit this job in your schedule. The designer actually does his/her job for once and earns their 5% from the customer not me.

I've giving out more of other people's cards than my own over the years. The same electricians, the same plumbers, the same carpenters. Those cards might in someway buy me some work in the future when they hand out my card in kind.

He's a jerk, meets a jerk, hands the jerk my card, I meet the other jerk, he wants everything for nothing because he's a jerk. He calls me a jerk. He tells the original jerk that I'm a jerk. The original jerk tried to con me out of money now decides I'm a jerk for not paying. Because he's a jerk, he flaps his lips and tells everyone he's knows that I'm a jerk.

End result, because you have interacted with a toxic conman you have now damaged your reputation by simply dealing with him.


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