Finder Fee Request

[Besoeker]

Maybe more like $1 a week?

Indeed and I stand corrected.
And it makes my comment about not sweating the small stuff even more to the point.

 

[Karl H]

$400-$500 a year,Handyman, 10% referral fee. :grin:

 

[active1]

Tell em as long as you can break it down into daily cash paymets.
That comes to just over $0.13.
Each days payment needs to be bicked up that day or forfeited.
Each payment requires a 2 page payment request form filled out in pen.
And noterized with that days date.

 

[hurk27]

I would tell him sure, just so you know I expect the same, give me 10% of all the jobs I get for you.:roll:

 

[e57]

You could be breaking the law. If a person does not have a license. Don't fall for it. You better be the prime directly with the customer. Contracting with and unlicensed person is against the law. What he is talking about is a kick back. In CA kickbacks are illegal. This is common. A guy calls himself an agent. Pulls permits on the customers behalf. As the previous post says, "let him get his GC and earn it".

I was looking for something on this - couldn't find anything as of yet... But found this on some Q&A page of a site....

IS IT LEGAL TO RECEIVE A FINDER'S FEE IF WE REFER ANOTHER CONTRACTOR?
YES absolutely, in every trade in the world referrals cost money. Referrals from Google, Yellow Pages, existing Customers get incentives from referring family and friends and many more examples. Just make sure your refer a licensed contractor otherwise you could lose your license.
The CSLB does not at any point mention or suggest that finder fees/commissions are an illegal act between two PROPERLY LICENSED contractors. If you have further questions on this subject you may contact the CSLB or a Construction Lawyer (like we did) or if you would like we can refer you to ours (he is very good).

Ref:http://www.waterdamagecompany.net/2.html

That said - I don't agree with "bird-dogging" or "pay to play" schemes. They reek of shady. Especially if it is larger unreported income in cash... I do however see this as sales commission (while it could be legal) - failure to discose it could be fraud.

Sales Commission ? If the contract provides for a payment of a

salesperson?s commission out of the contract price, that payment
shall be made on a pro rata basis in proportion to the schedule of​

payments made to the contractor.

 

[Power Tech]

Most sales companies do not have contractor licenses. I get a good portion of my work from profession sales companies.

And contracting with unlicensed persons is called contracting. Are your customers contractors?

All this depends on the amount of money involved 500.00 EWWWW 5,000.00 and it starts to look different.

No they are the owners of the property. If I have to I can file a lean on.

 

[Power Tech]

I was looking for something on this - couldn't find anything as of yet... But found this on some Q&A page of a site....

Ref:http://www.waterdamagecompany.net/2.html

That said - I don't agree with "bird-dogging" or "pay to play" schemes. They reek of shady. Especially if it is larger unreported income in cash... I do however see this as sales commission (while it could be legal) - failure to discose it could be fraud.

I don't do it. If I have a customer that needs an A/C I say use Ronnie Hawks, the only person to call in town. I would never ask for comish. Just because I have it done to me. I will not do it.

 

[CopperTone]

We have a client that refers to us $400-$500 worth of business every year. He owns a handyman franchise and has decided that because he refers business to us that we should mark up our price to the customers he refers to us by 10% and send him a check. We have a referral program in place, movie tickets, restaurant gift card, etc. and I told him that I would have to think it over. Charging our client more than our normal rates without their knowledge so he can get a kick back seems like an issue of integrity. And on top of it this guy is acting like he is a huge part of our business because of his referrals. Of course those referrals might grow if we comply. I need some feed back. Is this normal? Is this right? Should I just comply?

I'd tell this guy to blow it out his butt. $500 of business a year? is that 1 job a year? or is it 5 - $100 jobs? - the work sounds like a pain in the butt anyway.

 

[Power Tech]

I was looking for something on this - couldn't find anything as of yet... But found this on some Q&A page of a site....

Ref:http://www.waterdamagecompany.net/2.html

That said - I don't agree with "bird-dogging" or "pay to play" schemes. They reek of shady. Especially if it is larger unreported income in cash... I do however see this as sales commission (while it could be legal) - failure to discose it could be fraud.

Also I must point out you say "between licensed contractors". Exactly! I am saying "Contracting with an unlicensed person". As though he is a general. Or the owner of the property.

 

[GUNNING]

if he writes the check he can have the bucks

if he writes the check he can have the bucks

Id give him the $ on future work. But, he agrees on contracting, taking the risk and pays you up front for the work.
Needing lunch money isnt a good enough reason for back pay.

 

[petersonra]

Is the business he brings in worth 10%?

I have no problem whatsoever with using sales reps to bring in business. There are generally no legal strictures against it, providing it is a legitimate up and up sales rep arrangement.

If he is doing some unlicensed contracting and wants to involve you, I think it is best for you to just tell him you don't want to be involved in something that is not legal and leave it at that.

Its just not worth it, especially over $500 a year. If it was a more substantial amount, it might be worth looking at how you could structure it to make it legal (if it indeed is not legal presently), but even if it is 100% profit, an extra $500 a year is not worth the kind of aggravation you are likely to get if you involve yourself with this guy.