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: 5
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
I came across this on a...
rootytalbot
Today 11:04 AM
Today 06:16 PM
by Chilehead
2 50
Help bidding a hedge...
hopolb33
Today 06:09 PM
Today 06:09 PM
by hopolb33
0 21
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
Yesterday 11:27 AM
by mattthelawnguy
10 398
Big mowing job
Bradcook21
07-30-2015 03:57 PM
07-31-2015 01:16 PM
by Bradcook21
6 145
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-31-2015 12:29 PM
by Steve
1,227 401,490
Hello Everybody
budspop
07-30-2015 11:42 AM
07-31-2015 12:28 PM
by Steve
1 63
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
07-31-2015 11:34 AM
by googus
9 602
Hello!
brandycarlton
07-29-2015 12:31 PM
07-29-2015 03:54 PM
by Steve
1 138
Assessing the Market
NJDB60
07-27-2015 03:25 PM
07-28-2015 09:24 PM
by Steve
2 254
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
07-28-2015 09:09 PM
by Steve
2 236
Funny craigslist post
GreenWorx
07-28-2015 07:17 PM
07-28-2015 09:02 PM
by Steve
2 243
Watch out for this -...
rootytalbot
07-22-2015 02:13 PM
07-28-2015 09:00 PM
by Steve
7 398
NewVenture
NJDB60
07-27-2015 03:38 PM
07-28-2015 08:58 PM
by Steve
1 230
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
07-27-2015 06:40 PM
by GreenWorx
17 792
how to make customers...
Bradcook21
05-27-2015 05:04 PM
07-27-2015 06:08 PM
by GreenWorx
15 2,970
Need your help, Gopher...
Chilehead
07-23-2015 07:02 PM
07-27-2015 11:28 AM
by Steve
11 386
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
07-27-2015 11:22 AM
by Steve
94 10,472
Dogs
Mr. Mow
06-29-2015 02:37 PM
07-25-2015 07:50 AM
by Chilehead
12 2,434
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
07-22-2015 07:31 PM
by Chilehead
14 2,506
Learning as I grow -...
WarriorLandscapingCAN
07-18-2015 07:46 AM
07-21-2015 10:53 AM
by Steve
3 327
Large dirt mound removal
purdue1973
07-09-2015 07:45 PM
07-20-2015 12:55 PM
by Steve
6 466
Hey everyone
Fantasy landscaping
07-09-2015 06:53 AM
07-09-2015 11:47 AM
by Steve
1 340
Quickbooks Online
jscarolina
07-08-2015 07:54 AM
07-08-2015 12:55 PM
by Nate10928
1 363
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
07-07-2015 09:48 PM
by SGL1
16 2,763
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
07-07-2015 02:54 PM
by GreenWorx
13 3,701
Is it too late to do...
markty
06-16-2015 05:28 PM
07-07-2015 01:00 PM
by problem solver
9 2,509
Hi everyone
Mattw
07-06-2015 05:59 PM
07-07-2015 10:18 AM
by Steve
1 363
4th of July parade...
Steve
07-06-2015 10:35 AM
07-06-2015 10:35 AM
by Steve
0 312
Unemployment rates drop,...
Steve
07-02-2015 12:40 PM
07-06-2015 10:30 AM
by Steve
4 487
» Popular Tags
accounting ad landscaping aerocore applying bark billy goat brushcutter blowout bob villa bush collections contract help curb appeal services deliquentaccounts demonstration design edging equipment dealer financials flyers foreman free advertising google growing a lawn care business hardscapes hiring how to hydro increase customers invoicing jobs landscape landscape services landscaping landscaping training lawn aeration lawn care lawn care busines plan lawn mowing marketing marketing secrets more customers business mulch new business ordinance past due patio install per hour charge per hour service plowing pricing profit on employee quickbooks quickbooks online scag sell the vision seo shell shreaded snow plowing solo square foot swzt tree pics up sell employee walk behind web design website website design wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 11:06 PM.


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

All times are GMT -5. The time now is 11:06 PM.

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