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Old 03-11-2013, 09:11 PM   #1
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Hey guys,

was wondering if you accept referrals from other businesses, how much you pay for a leads, commision rate.

How you go about this kind of stuff.

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Old 03-11-2013, 09:34 PM   #2
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Hey guys,

was wondering if you accept referrals from other businesses, how much you pay for a leads, commision rate.

How you go about this kind of stuff.
I accept referrals, I do not pay commission or kick backs.

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Old 03-11-2013, 09:56 PM   #3
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I accept referrals, I do not pay commission or kick backs.
I actually encourage them. But I also do not pay a commission.
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Old 03-11-2013, 10:01 PM   #4
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I have never paid a commission for a referral.I get referrals based on the quality of my work.
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Old 03-11-2013, 10:08 PM   #5
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I had a carpenter tell me one time "I get 10% for any work I pass your way".

Funny, cuz I never asked him about referring me to anyone...he just came out with that.

I said ok, let me get you a card out of the truck.

Then I got in and drove away.
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Old 03-11-2013, 10:13 PM   #6
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I had a carpenter tell me one time "I get 10% for any work I pass your way".

Funny, cuz I never asked him about referring me to anyone...he just came out with that.

I said ok, let me get you a card out of the truck.

Then I got in and drove away.
It is funny when people feel they are an advertising agency and deserve a large kickback for putting in a good word.

Imagine If I told the owner of the local pub I wanted a 10%kickback on all his chicken wings sales of people I told to go in there for wings? He would laugh in my face.

What if I was happy with my Nissan, and told somebody to deal where I baught it, but told the dealership I wanted 10% off my next truck.

Lastly, What if I called Revenue Canada, and told them I encouraged my friends to file their year ends, so I should get a deal this year on my income tax
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Old 03-11-2013, 10:14 PM   #7
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I haven't paid anyone for a referral that I received but I have a designer that has referred me to a HO. I just haven't received the call yet.
She asked for 10% which will be tacked on to my price anyway so in reality I won't be paying her anyway.
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Old 03-11-2013, 10:17 PM   #8
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If I get the job because of the decorator, and the decorator makes it a condition, I have added a percentage for them.
I look at it as a commission if I know up front.
I'm discreet with the client but I wouldn't lie about it.
They usually say around %10.
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Old 03-11-2013, 10:22 PM   #9
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I haven't paid anyone for a referral that I received but I have a designer that has referred me to a HO. I just haven't received the call yet.
She asked for 10% which will be tacked on to my price anyway so in reality I won't be paying her anyway.
I never get that about designers. You are either a Designer, or a Contractor.
Be a contractor, and run the project your way and you can hire and pay the sub trades. You also profit from their work

Or Be a designer and charge the home owner your fee and get out of the way. I find most of the decorators I have met feel they have a sense of entitlement. Most are snobby yuppies, who would annoy the hell out of any real person. If they really need extra money raise your prices, don't try to demand it from other subtrades. If you want to get your feet wet, take a swim.

The only thing I kick back to a designer, is the attitude they throw my way.

[/end rant]
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Old 03-11-2013, 10:39 PM   #10
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If I get the job because of the decorator, and the decorator makes it a condition, I have added a percentage for them.
I look at it as a commission if I know up front.
I'm discreet with the client but I wouldn't lie about it.
They usually say around %10.
If I get a job based on a referral from a designer, the designer only gets a percentage if we're working for the designer who add it to their bill. If the HO hires us, the designer may get a thank-you from us.

Around here, designers seem to have a lot less influence than they seem to have in other regions. I'm a lot more likely to give a referral to a designer than they are to give one to me. I don't expect a commission from them.
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Old 03-11-2013, 10:40 PM   #11
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Originally Posted by Housepaintersottawa
Hey guys,

was wondering if you accept referrals from other businesses, how much you pay for a leads, commision rate.

How you go about this kind of stuff.
I'm glade this question was asked, because I wondered if I was the only one who does not give a finders fee. I carefully give referrals to other companies if i can help a business owner out who really does a good job THAT! is reward enough for me.
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Old 03-11-2013, 10:55 PM   #12
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In the past, if someone has reffered me with no expectation of a commission I thanked them with a nice bottle of scotch!
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Old 03-11-2013, 11:32 PM   #13
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Usually get referrals based on the quality of our work. Also helps having good friendships with a well respected carpenter and taper/drywaller in our area. We recommend them they recommend us, no kickbacks just good to know quality work is being done wherever we recommend them to. BUT...it is nice when they bring us a coffee...just saying lol.
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Old 03-12-2013, 12:38 AM   #14
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In the past, if someone has reffered me with no expectation of a commission I thanked them with a nice bottle of scotch!
I have done the same thing with wine. I will occasionally pass a discount along to the client who provided us a referral.
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Old 03-12-2013, 12:55 AM   #15
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If I get a job based on a referral from a designer, the designer only gets a percentage if we're working for the designer who add it to their bill. If the HO hires us, the designer may get a thank-you from us.

Around here, designers seem to have a lot less influence than they seem to have in other regions. I'm a lot more likely to give a referral to a designer than they are to give one to me. I don't expect a commission from them.
I totally get what you're saying. I guess I haven't judged this issue because I know how delicate it is to work with clients. Some of them have unreasonable expectations. I've never had to do their dance with so many trades and trying to seal the deal.

It doesn't happen with all the clients from the same designer. In other words the designer doesn't always ask for the commission. This leads me to believe it may be in the negotiation and personality of the customer.
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Old 03-12-2013, 01:49 AM   #16
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I totally get what you're saying. I guess I haven't judged this issue because I know how delicate it is to work with clients. Some of them have unreasonable expectations. I've never had to do their dance with so many trades and trying to seal the deal.

It doesn't happen with all the clients from the same designer. In other words the designer doesn't always ask for the commission. This leads me to believe it may be in the negotiation and personality of the customer.
It also may be what else the designer is selling them. We had some friends who opened an interior design firm once they finished their schooling. They were only providing design services, they didn't sell window treatments or carpeting. They only lasted a few years because they realized that the money wasn't in the design work per se, it was in the markup on materials.

In those jobs where the designer is asking for a commission, they may not be selling any of that other stuff. They're trying to make their nut off of you.
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Old 03-12-2013, 01:57 AM   #17
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A smart designer will value a painter who will give their clients quality work at a fair price. One who expects a kickback is a fool for trying to take advantage of a tradesman instead of treating them as a valuable component of the services they provide.
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Old 03-12-2013, 02:06 AM   #18
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It also may be what else the designer is selling them. We had some friends who opened an interior design firm once they finished their schooling. They were only providing design services, they didn't sell window treatments or carpeting. They only lasted a few years because they realized that the money wasn't in the design work per se, it was in the markup on materials.

In those jobs where the designer is asking for a commission, they may not be selling any of that other stuff. They're trying to make their nut off of you.
That's insightful, I think I may have known that once.
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Old 03-12-2013, 02:27 AM   #19
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I have no issues with a designer who functions like a GC does. Then they are making their money off of the person they should be getting it from - their client. But to try and make it off of me isn't going to fly.
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Old 03-12-2013, 06:11 AM   #20
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What is a designer?

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