Reasonable Finders Fee?
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  1. #1
    Join Date
    Sep 2009
    Location
    Colorado Springs, CO
    Posts
    3

    Greedy roofing company

    I am a mechanical contractor in Colorado that is getting a RTU job from a roofing company. They are asking me for a finders fee for this job and any future jobs they send my way. This is the first time I've dealt with this sort of business issue. Is this common? ... and if so, what is a standard or reasonable percentage for me to offer or to expect them to ask for?

    Thanks!
    Last edited by tinheadmike; 09-16-2009 at 02:42 PM.

  2. #2
    Join Date
    Mar 2005
    Location
    Houston, Texas
    Posts
    11,847
    Zero

  3. #3
    Join Date
    Mar 2003
    Posts
    7,321
    sometimes this comes up in business relationships, and depending upon how the work was dished out, it may just be okay. did you get a referral to bid against nine other guys, and just happened to be low bidder? or are they feeding you work direct that they already own and just need done? when i have had this sort of situation, my response is that i will give the company a fee at an agreed upon rate, once they furnish me with an invoice. for example, they send me a job worth x, their referral fee is say five hundy. bill me for that amount for services performed, and i will pay it. i will not, however, line some salesguys' pockets with a cash payment if thats what they want. in most cases, that backs them off.

  4. #4
    Join Date
    Sep 2009
    Location
    Colorado Springs, CO
    Posts
    3

    Reasonable Fee

    I am a mechanical contractor in Colorado that is getting a RTU job from a roofing company. They are asking me for a finders fee for this job and any future jobs they send my way. This is the first time I've dealt with this sort of business issue. Is this common? ... and if so, what is a standard or reasonable percentage for me to offer or to expect them to ask for?

    Thanks!

  5. #5
    Join Date
    Feb 2005
    Location
    Barrie, Ontario
    Posts
    4,622
    Quote Originally Posted by the dangling wrangler View Post
    Zero
    Funny. That's the same as the difference between a finder's fee and a kickback.

    I've had guys offer me money after a job was done for giving out their name, but usually its a "Refer me and I'll refer you," kind of deal.
    Is this a Fabreze moment? C.Y.D. I'm voting white elephant. 2.
    My competition are my best salespeople!

  6. #6
    Join Date
    Dec 2001
    Location
    Ocean Pines, MD
    Posts
    6,957
    Referrals work both ways tell them. You refer me, I'll make you look good for doing so. I refer you, I expect the same.
    If you want to take the job, sub me out and make your nut, that's fine too.
    Otherwise...........

  7. #7
    Join Date
    Jun 2004
    Location
    Howell, Michigan
    Posts
    16,168
    I give the name of a contractor out to someone because I know they are a professional, not because I am going to ask for a kickback.

    Are they going to pay you a fee when you send a job their way?

    This is how I see it, I recommend you because you are competent, not because you are buying me off.

    I have never done that nor have I expected it. I do have a plumbing contractor as well as an electrical contractor that I send jobs to on a regular basis, I would never dream of asking them for a cut.

    However, the plumber did buy me a real nice ham for Christmas.

    Buy the guy a ham for Christmas.....


    It's a kickback, it's payola, don't do it!
    Last edited by HeyBob; 09-16-2009 at 03:50 PM.

  8. #8
    Join Date
    Jun 2004
    Location
    Howell, Michigan
    Posts
    16,168
    What you can do however, is buy them a $50.00 gift certificate to a nice restaurant along with a "Thank You" note!

  9. #9
    Join Date
    Mar 2005
    Location
    Houston, Texas
    Posts
    11,847
    My first thought was kickback.

    I give guys names out all the time. The ones I know and trust.I don't expect anything more, than they do the same for me.

  10. #10
    Join Date
    Mar 2009
    Location
    Spokane WA
    Posts
    299
    Quote Originally Posted by HeyBob View Post
    What you can do however, is buy them a $50.00 gift certificate to a nice restaurant along with a "Thank You" note!

    Bobs idea seems reasonable. I don't like that "money" issue either! If you want to pay him back you recommend him. That's how it works around here.....

  11. #11
    Join Date
    Dec 2004
    Location
    Brooklyn, New York
    Posts
    170

    Wink

    left hand washes right-capiche??

  12. #12
    Join Date
    Jun 2004
    Location
    Howell, Michigan
    Posts
    16,168
    Quote Originally Posted by brooklyntech View Post
    left hand washes right-capiche??


    LOL, obviously in Brooklyn it does...........

  13. #13
    Join Date
    Jun 2004
    Location
    Howell, Michigan
    Posts
    16,168
    tinheadmike,

    I just found your other thread, I have merged them. Please read the rules, one subject, one thread, one forum!

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