Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

Paying for Job Leads - What's a Fair Percentage?


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 04-04-2011, 07:49 PM
Hedgemaster Hedgemaster is offline
new member
 
Join Date: Jul 2010
Location: Pittsburgh, PA
Posts: 2,772
Rep Power: 0
Hedgemaster is on a distinguished road
Default Paying for Job Leads - What's a Fair Percentage?

I've read a few bad "reviews" about that "MagicalService" outfit, so I'm not talking about them specifically.

I'm new. Winter has wipes out my funds and I can't advertise as I had planned to. The weather is crappy, and spring is off to a late start, so the phone isn't ringing yet. I can't tighten the belt much more.

Well, here comes a fellow lawn guy with an offer of job leads for me, as he knows I don't have a "base" built up yet. We discuss things, and he's not being sneaky about it - he explains that he is working a plan to have part of his income generated by "finders fees" for job leads he gives to people like myself.
Nothing set in stone, and no "contract", as he's still working out the bugs in his plan and trying to narrow down a few things. He's been doing the lawn thing for several years (mows my neighbor's lawn), and has been helpful to me by answering some questions, giving pointers, and even hiring me to help on a few jobs when I was first out of work, so this isn't just some guy who approached me out of the blue.

He's given me five leads over the last week or so - three of them I bid, and got the jobs ($300/$170/$100), while one hasn't decided yet, and the last one, I simply "passed" on, as it wasn't going to work out for me.

These are all jobs I would not have if not for his leads.

He was talking about using 10% as his fee for non-recurring type of work (clean ups, shrub removals, etc) and for a mowing job that is a "contract" or seasonal agreement, he gets the whole amount of the first cut, and "Then it's yours". No other fees, even if it leads into more work.

In the example of the three jobs I have lined up, the "payout" is as follows...

$570 (What I bid/am paid)
-$57 (his 10% finder's fee)
= $513 (what I have after paying him)

Is 10% fair? Average? Too high?

Any thoughts?
My hope is that eventually, I won't need to use his leads much, but at the moment, I'm hurting for work.

Last edited by Hedgemaster; 04-04-2011 at 07:51 PM.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 04-04-2011, 08:11 PM
SpokaneSRC SpokaneSRC is offline
Member
 
Join Date: Aug 2010
Posts: 89
Rep Power: 5
SpokaneSRC is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
I'm just starting out myself, and waiting for spring too. I think 10% with nothing else owing is very reasonable. It sure is to me. What I wonder is, why is he getting customers? He's advertising and you aren't? Or are they previous years customers? Any which way, 10% in my opinion, is well worth a customer.
Good luck.
Reply With Quote
  #3  
Old 04-04-2011, 09:04 PM
950thomas 950thomas is offline
Senior Member
 
Join Date: Jan 2011
Posts: 171
Rep Power: 4
950thomas is on a distinguished road
Default

10 % is standard I pay that to anyone who sends me biz including customers
Reply With Quote
  #4  
Old 04-04-2011, 09:07 PM
bruces bruces is offline
new member
 
Join Date: Apr 2010
Posts: 828
Rep Power: 0
bruces is on a distinguished road
Default

I think that sounds like a pretty fair offer .I would like to add that looking at the flier you designed ,I dont know why [assuming you havent ] you dont try to do a few fliers for others during your slow times .You have something that many types of business's could use a hand with ,and I bet you could fill in the holes in your schedule easily .Roofers,carpenters,mechanics ,all have things they are good at,often promoting their business professionally isnt one of them .
Reply With Quote
  #5  
Old 04-04-2011, 09:25 PM
Hedgemaster Hedgemaster is offline
new member
 
Join Date: Jul 2010
Location: Pittsburgh, PA
Posts: 2,772
Rep Power: 0
Hedgemaster is on a distinguished road
Default

Quote:
Originally Posted by SpokaneSRC View Post
I'm just starting out myself, and waiting for spring too. I think 10% with nothing else owing is very reasonable. It sure is to me. What I wonder is, why is he getting customers? He's advertising and you aren't? Or are they previous years customers? Any which way, 10% in my opinion, is well worth a customer.
Good luck.
I THINK he may be using a service (for the leads) that he pays into, or pays into with another person... he's just throwing some of the stuff he doesn't want, or doesn't have time for my way. He's been in business for at least four years, so yes, he does advertise (when he wants/needs to), and he does have a large customer base already. He's looking to "expand" by subcontracting to other guys in specific areas.

And no, I'm not advertising aside from word of mouth, and the Craigslist ad I just posted and having gone door to door in the winter (snow removal).
Reply With Quote
  #6  
Old 04-04-2011, 10:00 PM
Hedgemaster Hedgemaster is offline
new member
 
Join Date: Jul 2010
Location: Pittsburgh, PA
Posts: 2,772
Rep Power: 0
Hedgemaster is on a distinguished road
Default

Quote:
Originally Posted by bruces View Post
I think that sounds like a pretty fair offer .I would like to add that looking at the flier you designed ,I dont know why [assuming you havent ] you dont try to do a few fliers for others during your slow times .You have something that many types of business's could use a hand with ,and I bet you could fill in the holes in your schedule easily .Roofers,carpenters,mechanics ,all have things they are good at,often promoting their business professionally isnt one of them .
Thanks, and yes, I will likely start to offer my design services at some point here. It's not the "money maker" that you would think though. Ever since the day that some retard with a bootleg copy of Photoshop and an internet connection sat down and said he was a "designer", the market got flooded with... yeah, just like lawn care... "lowballers".

It's hard to compete with places that offer "logos for only $69! Unlimited revisions!!!" Eff that! I'm not spending all day and half the next day, and maybe several more hours after that to "finalize" a logo for $69. My time and talent is worth more than that, but it's hard to explain that to people who only see the dollar sign, and don't know a good logo from a box of kittens when they see it.

I need to set some parameters for pricing, and get a payment method set up, but yeah - it's in the works. Now may not be the best time to do it, as things should start getting busy (crosses fingers), but I can see a great opportunity come next fall/winter.
I figure by this point, everyone knows I'm not just here posting with an agenda. I'm here to learn how to make a living in the lawn care business first and foremost. I have a wife and several pets to feed - and home I'm trying not to lose - I need all the advice I can get.

Those who understand where I'm coming from, and need a hand with some design work are free to PM me. If it's something I can help with, I'll let you know. As a reward for participating in this helpful forum, I can say that at this point, I will give forum veterans and regular posters more priority, and more leeway on pricing - kind of a "you've helped me, now I can help you" sort of thing.

I'll leave it at that, as I didn't intend for this to be an "ad", and I'd like to keep the focus on my original question regarding the 10% fee for referrals.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Equipment Maintenance Percentage Help jcal0914 Starting a lawn care business. 4 07-28-2010 03:20 PM
Fair Tax swstout General Talk 6 07-24-2010 02:24 PM
What percentage of labor payout is acceptable? llelywynn Lawn Care Employees Discussions 8 03-19-2010 06:39 PM
What percentage of your estimates do you win? Steve Online Lawn Care Estimator - Help me bid this job 6 07-23-2008 07:51 PM
Percentage of Gross tiedeman Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 5 12-20-2006 01:33 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Lawn Care business...
crieg122
10-23-2014 01:23 PM
Today 08:06 PM
by Matther777
7 272
Leaf removal
madmedic8575
Yesterday 04:14 PM
Today 08:02 PM
by Matther777
4 156
Business Cards
crieg122
Today 12:03 PM
Today 07:55 PM
by Matther777
2 63
raking leaves ?
robert8509
10-22-2014 09:19 PM
Today 12:09 PM
by biglee
10 343
Leaf Box & Loader Set...
ringahding1
10-21-2014 06:20 AM
Today 11:46 AM
by crieg122
6 348
Gie-review / What's new...
ExtremeLawncareServices
Today 09:19 AM
Today 09:19 AM
by ExtremeLawncareServices
0 53
Dealing With Gas Can...
Mr. Mow
10-21-2014 01:41 PM
Today 08:37 AM
by Dan Tanner
10 401
My Newest Toy (B.P....
Dan Tanner
10-23-2014 05:50 PM
Today 05:06 AM
by Dan Tanner
2 182
hey everyone
robert8509
10-22-2014 08:16 PM
Yesterday 11:07 PM
by robert8509
7 269
new to the forum
madmedic8575
Yesterday 02:52 PM
Yesterday 02:52 PM
by madmedic8575
0 94
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
Yesterday 01:00 PM
by Steve
11 943
12 Years in Business!
Chilehead
10-23-2014 08:07 AM
10-23-2014 11:08 PM
by Chilehead
2 188
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
10-23-2014 05:55 PM
by biglee
13 497
Hi from SoCal
Jmoney
10-23-2014 11:29 AM
10-23-2014 12:51 PM
by Steve
1 156
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
10-23-2014 12:33 PM
by Steve
5 611
Pda
stevef1201
10-18-2014 02:05 PM
10-23-2014 06:12 AM
by ringahding1
4 437
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
10-22-2014 01:27 PM
by Steve
6 509
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
10-22-2014 01:23 PM
by Steve
3 482
Hi Steve From West...
Mr. Mow
10-21-2014 01:59 PM
10-22-2014 01:19 PM
by Steve
1 254
Help a brother...
tbtigers03
09-28-2014 11:41 AM
10-22-2014 08:51 AM
by ringahding1
12 1,622
first year update
cmdlawncare
08-12-2014 05:41 PM
10-22-2014 07:47 AM
by ringahding1
4 1,455
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
10-21-2014 01:36 PM
by Mr. Mow
16 758
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
10-21-2014 01:26 PM
by stevef1201
11 610
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
10-21-2014 01:19 PM
by ExtremeLawncareServices
158 11,557
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
10-21-2014 01:04 PM
by SGL1
4 358
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 1,931
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,417
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 322
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 389
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 849
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,314
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 586
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 425
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 765
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 1,071
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,454
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 786
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-15-2014 06:43 PM
by NHray
1,190 340,479
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 511
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,614
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,616
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,724
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 641
Help with seeder...
ExtremeLawncareServices
10-09-2014 07:39 AM
10-13-2014 08:09 PM
by ExtremeLawncareServices
5 802
The Market watch
WesleySnips
10-12-2014 08:47 PM
10-13-2014 05:40 PM
by SGL1
3 647
Help pricing a large...
Bradcook21
10-07-2014 06:49 AM
10-13-2014 02:00 PM
by Steve
7 998
leaf removal
Double J LLC
10-03-2014 04:24 PM
10-13-2014 06:46 AM
by Billy Goat
19 1,651
Acerage Rake
acrajchel
04-23-2014 07:23 PM
10-12-2014 10:53 PM
by SGL1
2 961
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
10-12-2014 06:20 PM
by kslawn
25 1,783
Credit card contract
SGL1
10-06-2014 05:31 PM
10-12-2014 03:40 PM
by SGL1
18 1,186
» Popular Tags
4x4 apartment complex article marketing auger bark bid billy goat brushcutter blades care charge collections decorating ditches edging equipment rental exmark ferris foreman four wheel drive fundraiser gopherhaul gravely growing a lawn care business how much to charge husqvarna installation introduction john deere quik trac kawasaki landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website marketing mr dave mulch new buisness new mower past due podcast promotion pto redmax reo running a business scag scripts search engine optimization seo shreaded small engine repair snow sprayer starting a business steve stihl theft of services top dresser toro toro grand stand trailer trimmer rack turfgrass consulting walker wood
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 09:30 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 09:30 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy