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, 08:49 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 08:51 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, 09:11 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, 10:04 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, 10:07 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, 10:25 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, 11:00 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 04:20 PM
Fair Tax swstout General Talk 6 07-24-2010 03:24 PM
What percentage of labor payout is acceptable? llelywynn Lawn Care Employees Discussions 8 03-19-2010 07:39 PM
What percentage of your estimates do you win? Steve Online Lawn Care Estimator - Help me bid this job 6 07-23-2008 08:51 PM
Percentage of Gross tiedeman Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 5 12-20-2006 02:33 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Say Hello !!!
Steve
03-19-2007 12:18 PM
Yesterday 10:30 PM
by Just Cuts
1,194 348,784
Contract or no contract?
TRV
11-20-2014 09:18 PM
Yesterday 09:23 PM
by stevef1201
5 265
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
Yesterday 09:16 PM
by stevef1201
9 331
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
Yesterday 07:32 PM
by ExtremeLawncareServices
4 436
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
Yesterday 07:22 PM
by ExtremeLawncareServices
178 14,252
Hello from Kentucky
TRV
09-30-2014 06:42 PM
Yesterday 07:16 PM
by ExtremeLawncareServices
10 1,391
Pics for website
tbtigers03
11-21-2014 05:40 PM
Yesterday 12:12 PM
by Just for Cuts
5 234
Hi from IL
steveinil
11-25-2014 02:07 PM
Yesterday 11:21 AM
by Steve
1 65
WNY saying Hi.
Sargewesser
11-25-2014 07:27 AM
Yesterday 11:20 AM
by Steve
1 72
How to: Use Thumbtack...
acrajchel
11-17-2014 06:39 PM
Yesterday 11:19 AM
by Steve
18 644
Peco Bagger
AGPS
11-18-2014 02:20 PM
Yesterday 10:58 AM
by Steve
10 397
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
Yesterday 10:57 AM
by Steve
22 6,288
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
Yesterday 10:42 AM
by Steve
5 392
Billboards for marketing
ExtremeLawncareServices
11-16-2014 08:39 PM
Yesterday 10:40 AM
by Steve
14 458
leaf removal
Double J LLC
10-03-2014 05:24 PM
Yesterday 01:08 AM
by ExtremeLawncareServices
25 2,590
How much do you up sell...
Essex Groundskeeping
11-23-2014 07:13 PM
11-24-2014 06:29 PM
by stevef1201
8 221
This sucks...
Matther777
09-18-2014 05:56 PM
11-24-2014 05:49 PM
by biglee
16 3,253
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
11-24-2014 04:32 PM
by acrajchel
4 694
New website
Chilehead
11-20-2014 04:39 PM
11-23-2014 07:40 PM
by Just for Cuts
12 348
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
11-22-2014 10:49 PM
by Just for Cuts
16 577
Belt dealer problem
googus
11-21-2014 08:45 AM
11-21-2014 06:36 PM
by Steve
2 185
What is going on with...
biglee
11-14-2014 03:04 PM
11-20-2014 02:50 PM
by biglee
40 1,035
My advice for new guys
avetslawncare
11-15-2014 09:32 AM
11-19-2014 01:47 PM
by biglee
10 580
Lawn Care business...
crieg122
10-23-2014 02:23 PM
11-19-2014 12:39 PM
by acrajchel
28 1,946
raking leaves ?
robert8509
10-22-2014 10:19 PM
11-18-2014 04:24 PM
by acrajchel
14 1,522
Leaf removal
madmedic8575
10-24-2014 05:14 PM
11-17-2014 07:34 PM
by acrajchel
6 1,258
sod job
SGlawncare
10-30-2014 09:21 PM
11-17-2014 07:10 PM
by acrajchel
7 843
Customer wants me to...
Mr. Mow
11-09-2014 07:13 AM
11-17-2014 06:48 PM
by acrajchel
10 627
Hello!
Brian3137
11-11-2014 07:15 PM
11-17-2014 06:46 PM
by acrajchel
14 547
small biz in Phoenix,AZ
anthonyramos1
11-08-2014 09:35 PM
11-17-2014 05:59 PM
by acrajchel
2 387
Client won't pay...
WesleySnips
10-30-2014 03:53 PM
11-17-2014 05:37 PM
by acrajchel
22 1,465
Government contracts
avetslawncare
11-15-2014 08:50 AM
11-17-2014 12:59 PM
by Steve
2 320
Need help on deciding a...
Brian3137
11-10-2014 06:32 PM
11-17-2014 12:44 PM
by Steve
12 588
West cost lawn prices
SGlawncare
10-09-2014 10:51 PM
11-16-2014 07:54 AM
by stevef1201
8 1,671
So how do you guys...
Mr. Mow
10-26-2014 08:55 AM
11-15-2014 08:44 AM
by avetslawncare
14 1,794
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
11-13-2014 08:35 AM
by jrs.landscaping
81 31,958
The most dangerous part...
Steve
10-06-2014 03:45 PM
11-12-2014 05:05 PM
by stevef1201
14 1,768
A little hang up in snow...
stevef1201
11-08-2014 07:05 AM
11-12-2014 12:51 PM
by Steve
4 505
Bi-weekly winter...
lxarth
11-04-2014 08:37 PM
11-12-2014 10:06 AM
by WesleySnips
9 711
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
11-11-2014 01:21 PM
by Steve
1 398
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
11-11-2014 08:12 AM
by Just for Cuts
4 455
Business Cards
crieg122
10-25-2014 01:03 PM
11-11-2014 07:56 AM
by Just for Cuts
12 1,405
How the unregister?
alive101
11-04-2014 07:39 AM
11-10-2014 01:48 PM
by Steve
4 673
Belt adjustment question
googus
11-05-2014 06:43 AM
11-10-2014 01:38 PM
by Steve
5 573
Podcast
Shark1611
11-07-2014 05:42 PM
11-10-2014 11:41 AM
by Steve
1 372
hi, from Minnesota
rjklohn
11-07-2014 02:21 AM
11-07-2014 01:44 PM
by Steve
1 392
New to snow plowing
SS.Lawncare
11-05-2014 04:00 PM
11-07-2014 01:21 PM
by Steve
6 654
New Member
tonyap
11-05-2014 10:35 PM
11-07-2014 01:15 PM
by Steve
1 432
New to the business
jcurr33
11-05-2014 03:21 PM
11-07-2014 01:11 PM
by Steve
1 489
Lines
Matther777
11-04-2014 02:19 PM
11-07-2014 12:54 PM
by Steve
1 531
» Popular Tags
2wd 4x4 apartment complex auger bark bob villa care charge collections commercial decorating demonstration edging employee problems exmark ferris four wheel drive gopherhaul grass gravely hardscapes hills holiday how much to charge jobs john deere quik trac kawasaki labor cost landscape services lawn lawn care lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lawn care website seo lighting lighting brass outdoor lights managing a lawn care business mr dave mulch mulch estimate new buisness past due patio install per hour service podcast pto push versus ride redmax scripts seo shell small engine repair snow sprayer starting a business starting a lawn care business steve sulky theft toro toro grand stand trailer mate pro tree turfgrass consulting up sell employee
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:59 AM.


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

All times are GMT -5. The time now is 03:59 AM.

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