I am curious to know what the standard referral fee is. I have had people tell me 8% of the profit, 10% of the profit. What thew standard?
Thanks
I am curious to know what the standard referral fee is. I have had people tell me 8% of the profit, 10% of the profit. What thew standard?
Thanks
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Replies
you got to be kidding.
Dunno about Referral fees but somebody needs to be getting a Referee sometimes here on this site!!
Geez.... a referral fee based on pct of profit?? Dont think so. If somebody refers me a job and it warrants a "fee" I could cough up 50-100 dollars.
Are you talking about one of those internet pre screen type companies?
I look down my nose at people who dare to look down their nose at people.
Here's a discussion from the old board. Maybe it answers the question.
http://forums.prospero.com/tp-breaktime/messages?msg=311.1
How 'bout the old idea that people network to get each other jobs? What if I lose my but on a project, does that person now owe me?
By the way, a congressman in Youngstown Ohio is facing charges (among many others) on accepting "referral" fees and not reporting the income. Known in the trade as 'kickbacks'.
referal fees based on % of profit is probably one of the many things that created the Arthur Andersen School of Accounting procedures.
This was discussed on the old site way back....and got similar responses. Guess it all depends where you work. Quite common around here.
10% to 15% seem to be the average. I look at it this way......it's a solid job....referals usually mean less hassle.....that you woundn't have gotten in the first place.
Thinkj of it as your advertising cost...or marketing. All the bisiness minds here say yo gotta have that in your overhead, right.....well......ya got a job handed to you w/o spending any of your ad/market budget. Take it out of that pretend fund.
Hey....if it keeps the jobs rolling in......just like a paid salesman. It'c comming out of profit.......no jobs....no profit.....and 85% profit left is better than the 0 you were gonna make on that job w/o the "referal"!
Guess we're just doing business the old fashion way! Jeff * Jeff J. Buck/ Buck Construction/ Pittsburgh, PA *
2nd Generation Buck Const, 3rd generation Craftsman
Jeff,
15%? I will really push those stair jobs your way now!! By the way did you get them?
Remember.....I said PROFIT! Jeff * Jeff J. Buck/ Buck Construction/ Pittsburgh, PA *
2nd Generation Buck Const, 3rd generation Craftsman
I've never gotten a dimeMad Dog