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: 4
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 Outdoor Power Equipment Discussion, Repairs, Buy or Sell 5 12-20-2006 01:33 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Customer letters
kslawn
Today 06:17 AM
Today 06:17 PM
by kslawn
2 37
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
Today 05:53 PM
by eastsidelandcare
2 114
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
Today 05:49 PM
by eastsidelandcare
2 154
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
Today 05:37 PM
by Just for Cuts
9 197
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Today 03:55 PM
by stevef1201
75 4,259
Should I ?
googus
Yesterday 04:06 PM
Today 03:48 PM
by googus
3 102
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
Today 12:42 PM
by Steve
3 129
new to me box truck
jrayb39667
03-06-2014 10:20 PM
Today 12:40 PM
by Steve
15 1,306
Need help determining...
Jbss861
07-20-2014 02:33 PM
Today 12:35 PM
by Steve
10 221
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
Today 12:14 PM
by Steve
14 816
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
Today 11:55 AM
by Steve
26 1,103
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
Today 11:48 AM
by Steve
4 172
Overspray?
stevef1201
07-21-2014 04:20 PM
Today 11:39 AM
by Steve
3 83
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
Yesterday 01:53 PM
by Steve
6 205
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 606
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 442
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 218
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
07-21-2014 01:04 PM
by Steve
12 496
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 515
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 111
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 115
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 656
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 969
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 705
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 640
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 318,469
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-15-2014 11:56 AM
by Steve
5 216
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
07-15-2014 11:42 AM
by Steve
9 319
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,654
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 392
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 323
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 785
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 503
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 508
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,826
Fuel and fuel additives
SGL1
07-06-2014 10:23 AM
07-11-2014 07:53 PM
by SGL1
15 500
Questions for a patchy...
jumcgee
07-09-2014 08:42 AM
07-11-2014 12:34 PM
by Steve
1 176
toro proline blades wont...
boog
06-25-2014 06:26 PM
07-11-2014 05:28 AM
by kslawn
18 607
Contents of Marketing to...
prmenter@gmail.com
07-09-2014 05:25 PM
07-10-2014 03:23 PM
by Steve
3 260
Shindaiwa
CLB454
05-13-2014 09:04 PM
07-10-2014 03:04 PM
by Steve
14 741
Starting New in FL
mmcuttrim
08-06-2010 09:22 AM
07-10-2014 02:44 PM
by Steve
48 11,197
Bid help 45 on acre...
Priggan
06-26-2014 12:56 PM
07-09-2014 08:38 AM
by kslawn
7 484
need help bidding fence...
veteranslawncaresystems
07-03-2014 10:33 AM
07-08-2014 12:00 PM
by Steve
5 346
Trimmer or Knife?
gwilson98
07-04-2014 09:56 PM
07-07-2014 02:41 PM
by Steve
6 311
Started a New Solar Lawn...
Solar Lawn Care
06-08-2013 01:40 AM
07-07-2014 01:55 PM
by Steve
37 7,373
New Canadian Member
coppervalley
07-04-2014 02:15 PM
07-07-2014 01:12 PM
by Steve
1 212
Happy Independance...
stevef1201
07-04-2014 07:05 AM
07-07-2014 01:01 PM
by Steve
2 213
Echo PE 266 edger
stevef1201
07-01-2014 01:28 PM
07-07-2014 12:47 PM
by Steve
4 291
30 Inch Push Mowers Pros...
Billy Goat
06-27-2013 08:07 PM
07-06-2014 01:50 PM
by SGL1
21 5,186
Poulan Pro trimmers
SGL1
06-30-2014 11:16 PM
07-05-2014 09:32 PM
by SGL1
20 491
» Popular Tags
advertisement article marketing bid charge christmas lighting christmas light service courtesy call credit card processing customers decorating ecosymbiosis escrow estimate exmark ferris four wheel drive fundraiser gopherhaul grass gravely gravely 34" zero turn hills holiday holiday decorating holiday lighting honda how much to charge introduction kawasaki lawn lawn care business lawn care business book lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf removal managing a lawn care business marketing native plants new buisness new mower office management online classifieds outdoor environments podcast push versus ride redmax reo rotating scag scripts search engine optimization season seo snow sprayer starting a business starting a lawn care business steve stihl subcontractor theft toro tractor auger turfgrass consulting walker wright stander rh zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 06:56 PM.


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

All times are GMT -5. The time now is 06:56 PM.

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