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As a custom builder in Eastern Long Island, NY I build 3 to 5 houses a year. A laborer on one of my crews referred my company to a potential client who will probably sign contracts on a new home. I would like to provide an incentive of some type for this employee, however I do not know of any protocals to follow. Has anyone out there been in a similar situation? Any advice or comments would be helpful. JPO
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George --
Salesmen get paid to bring in work. Usually it's a small salary to keep them alive while they try, and a percentage commission on the actual work they bring in. Depending on the value of the resulting job, this sounds like it could be worth anything from a sixpack to a company car.
-- J.S.
*George, I brought no less than 4 customers to the company I was working for as a carpenter. the reward the company gave me was nuttin, zero, nada... Maybe your employee is a big stupid boob like me and and you won't have to give him any type of reward or perk. As far as what you might consider giving him, just remember that if he's a laborer, then just about any amount of cash would sure seem like a mighty big windfall to him. ( maybe a couple of hundred bucks??) Just the fact that you feel you ought to do something for him certainly goes a long way in my book.
*I agree with Mark on this. A modest $$ amount might go along way to keeping a good employee too. He also could turn in more leads which is the whole point of incentives like that. I hope he would be the appreciative type, that would make me feel better about it. I would keep it low key to avoid any animosity.
*The sales world revolves around commission. I'd suggest a set percentage of the job cost, then just factor the "commission" into the sales price. Guess the commission percentage would be based somewhat in what he did to bring in the work. Or, maybe a percentage of the profit, if any.......but on that note, if he's a laborer....and you are the builder.....you probably affect the profit/loss equation more than he does! Tough call, but as said above.....if you sold this job on your own, you'd expect to be compensated....and if you had got the lead thru some advertising....I'm sure you'd have had to pay for that. Let us know what you decided, and if it seemed to work. Jeff
*well george i stared at this post for about 5 minutes like the rest of my brethern on the board i worked in the trenches many moons, and i could go on with the bio, but it's boring and every one has B.T.D.T. . size up the employee, been with you for awhile, is he consistent, with work and every thing that goes with that word. and the job is worth 6 figures to you. see how he handle himself for the the one specfic job. tell him how much you appreciate the gesture, and explain how precarious the business is . and if things work out they'll be compensation at the end. i'd say a week's pay. and a raise (something that will instill pride). granted it all depends on the size of the job. then look at his inventory of tools , lets say he needs a circular saw give him one, or maybe a sawzall maybe both. a good employee is worth his weight . and a gesture like that will go a mighty lonnnnnggg way. that just my opinion goodluck bear P.S. I myself work on longisland northshore nassau/suffolk cheers
*Well i've ben at this livelihood about 20+ years so i'll cut to the chase.About $400-$2000, you figure it out. The difference between being stingy and being generous is about 20%. That 20% can make you feel alot better about yourself, for what that is worth.joe d
*Couple of hundred bucks when the deal's signed, some more when the last payment's in. (Only promise the 2nd if you'll pay him wether or not he's still with your company.)Consider giving it to him publicly; in front of other crew members: "Jack, thanks for bringiong in this client. We signed the papers last night and will be starting xxx. I really appreciate the referral to a qualified prospect."Keep in mind that part of what salesmen are compensated for is "qualifying the customer" and closing the deal. You don't want every crew member referring every cousin for work that'll never materialize, 'cuase you don't want to waste the time on the followup sales.SO give an incentive, but make sure you don't open the door too widely.
*Had a similar situation several years ago.Gave him a weeks paid vacation when I got a signed contract, and then the job fell together so nicely that I gave him an additional weeks pay at the end of the job.He was so appreciative it was almost embarrassing.Terry
*good point about qualifying leads and working the close. Jeff
*Years ago when I ran my remodeling business full time I gave $10 to $20 for a firm lead. Much of my work was small stuff so if I closed on the lead I tried to work in another $$ as follow up.When I partenered with a guy doing vinyl and alum. siding work we paid a fellow $5.00/hr. to do phone solicitations for us. He then got 5% of the profit on a closed and finished job. He was not a crew member, so his only renumeration came from finding work for us. If a crew member gaves us the lead, he got paid for doing the job and small % of the profit. I always felt that by helping the boss get job leads they were helping themselves with continouse employment. It wasn't a condition of employment however.I like the direction you are going.Dave
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As a custom builder in Eastern Long Island, NY I build 3 to 5 houses a year. A laborer on one of my crews referred my company to a potential client who will probably sign contracts on a new home. I would like to provide an incentive of some type for this employee, however I do not know of any protocals to follow. Has anyone out there been in a similar situation? Any advice or comments would be helpful. JPO