Reasonable Finders Fee?

[tinheadmike]

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!

[the dangling wrangler]

Zero

[flange]

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.

[tinheadmike]

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!

[gruntly]

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.

[Stamas]

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...........

[HeyBob]

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!

[HeyBob]

What you can do however, is buy them a $50.00 gift certificate to a nice restaurant along with a "Thank You" note!

[the dangling wrangler]

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.

[Super Tech JJ]

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.....

[brooklyntech]

left hand washes right-capiche??

[HeyBob]

left hand washes right-capiche??

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

[HeyBob]

tinheadmike,

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

[zw17]

It's called a "kickback" and in most areas they are illegal.

If you were ever to get into any sort of .gov building (school, hospital, university, etc..) and you received or gave any sort of kickbacks you could face jail time.

As mentioned above gift cards, vacations, etc.. They are all considered kickbacks.


I once bought a cup of coffee for a guy at a major university, a lousy $2 cup of joe, well someone higher up saw that and called my manager saying that if it happened again we would both be tossed off campus and the university employee I bought the coffee for would be terminated. I told my manager the guy forgot his wallet and he borrowed $2, he knew the gig and kind of smirked at me.

No joke, that is how serious some people take this stuff.

[beenthere]

A kickback is paid to a person that is involved in the authorization/awarding of a contract.
Since the roofing contractor is not awarding the contract, its not a kickback, or illegal.

[zw17]

A kickback is paid to a person that is involved in the authorization/awarding of a contract.
Since the roofing contractor is not awarding the contract, its not a kickback, or illegal.

True and false.

False because he never said whether the roofing co. was the GC on a job, and we don't know if bids are involved.

The GC would be the one to assign sub contractors making it shady at best, if bidding is involved then it's 100% illegal.

[tinheadmike]

Sorry for the double threads ... new here.

Thank you for the replies. Have a great day!

[spotts]

Did they let you know they wanted some of the profit from your job prior to bidding it? If not, your taking money right out of your familys mouths to give to them for no work at all. Do your costs to perform the job go down? No. Does your profit needed to stay in biz go down? Yes. If they need a spiff to refer you, tell them next time to let you know so you can add it to the bid. It's only fair.

[mustardman]

It's called a "kickback" and in most areas they are illegal.

If you were ever to get into any sort of .gov building (school, hospital, university, etc..) and you received or gave any sort of kickbacks you could face jail time.

As mentioned above gift cards, vacations, etc.. They are all considered kickbacks.


I once bought a cup of coffee for a guy at a major university, a lousy $2 cup of joe, well someone higher up saw that and called my manager saying that if it happened again we would both be tossed off campus and the university employee I bought the coffee for would be terminated. I told my manager the guy forgot his wallet and he borrowed $2, he knew the gig and kind of smirked at me.

No joke, that is how serious some people take this stuff.

Thats ridiculous. I am out of town in a remote location this week and have taken customers out every day. The sales guys don't get up here much so its up to me to wine and dine. Hope they all don't get fired.

[spotts]