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Old 04-04-2011, 08:01 PM   #1
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How much would you throw a friend for talking a good game to a 3rd party and ultimately landing a nice job for you? I have a $65k job that I'm currently working on and this so called friend thinks I owe him 10%. What I would pay is about 1 or 1 1/2% for the job he claims to have really sold me on. Fact is I still had to sell myself on the homeowners to land the job, he left nothing carved in stone that it would definitely be my job.
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Old 04-04-2011, 08:09 PM   #2
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Doesnt seem like much of a friend. 1% isnt bad off 65 grand. Is he helping you paint it too? If he really thinks 10% is what you owe him, offer 10% of the profit.
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Old 04-04-2011, 08:12 PM   #3
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If he sold the job and brought you a contract, 10% would be the top of industry standards but I would think that would have to be agreed upon beforehand. 1% is a little cheap but the bottom line is... don't do business with friends.
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Old 04-04-2011, 08:14 PM   #4
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What ever happened to a lovely penned thank you note!

10% is all my profit - I don't like to work to just break even anymore. 10% of profit maybe.
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Old 04-04-2011, 08:16 PM   #5
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Did you discuss anything about a commission before landing the job?....I know of a few designers who demand a 10% fee but I have turned them down...10% is outrageous especially for a 65 grand job...I don't have a problem paying a designer 5% of a 5-10 grand job,but the commission percentage goes DOWN as the job's price goes up,generally speaking...

Your "friend" is going to be disappointed no matter what you give him short of his expected 10%...Therefore throw him 2K and call it a day...You'll probably never hear from him again but you didn't welch on the deal and you'll be at peace with yourself...

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Old 04-04-2011, 08:17 PM   #6
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The standard that I have seen is about 7%

This includes doing the estimate, selling the job, all you had to do was go produce it.

10% for basically a referral is absolutely ridiculous.

In this case I'd throw him a grand if all went well max
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Old 04-04-2011, 08:18 PM   #7
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Quote:
Originally Posted by Builtmany View Post
How much would you throw a friend for talking a good game to a 3rd party and ultimately landing a nice job for you? I have a $65k job that I'm currently working on and this so called friend thinks I owe him 10%. What I would pay is about 1 or 1 1/2% for the job he claims to have really sold me on. Fact is I still had to sell myself on the homeowners to land the job, he left nothing carved in stone that it would definitely be my job.
Is your friend's name Dan?




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Old 04-04-2011, 08:23 PM   #8
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I thought leads were from $ 225 to $ 250
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Old 04-04-2011, 08:34 PM   #9
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Friends do it because they are friends, not because they expect a form of compensation, or anything other than friendship in return.

I'd throw him a few hundread and re-evaluate what my definition of "friend" is.

(I have few "friends, but they are quality friendships)
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Old 04-04-2011, 08:39 PM   #10
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Like Josey said, what was the agrement, before you priced the job? If there was none, I'd throw him a few bills and call that "friendship" done......
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Old 04-04-2011, 08:41 PM   #11
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Quote:
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10% is all my profit - I don't like to work to just break even anymore. 10% of profit maybe.
If 10%is your profit on jobs, you better think about raising you prices.
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Old 04-04-2011, 08:51 PM   #12
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Quote:
Originally Posted by premierpainter View Post
If 10%is your profit on jobs, you better think about raising you prices.
That's unfounded Premier. How do we know RIAD isn't paying himself $90 hrly Besides, he said profit, not profit and overhead.
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Old 04-04-2011, 09:08 PM   #13
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Quote:
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If 10%is your profit on jobs, you better think about raising you prices.

I could always lower my standard of living and that of my employee to make my bottom line larger. I now account for every possible penny of overhead in my charges, pay myself fairly and my employee very well. I even account for all those little unproductive hours and days in the year that can't be billed/ productive, - learned it here. My projected profit is pretty much guaranteed...I would love to make that on my other investments...
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Old 04-04-2011, 09:43 PM   #14
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Tell him he can earn the 10% by picking up a brush, sand paper, putty, roller, 32' ladders, talking to designers and customers,

or .. put him on the payroll. Take out taxes, fico, insurance. Hell it might bump him up in tax brackets. Then tell him you expect at least this much work from him every month.

When there is a problem on the job, tell the customer they will have to talk with their salesman and give them his phone number. Make it clear to him that this is part of his commission.

But what ever you decide to give him make sure it comes with a 1099.
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Old 04-06-2011, 12:48 PM   #15
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Depends on how the deal went down.

Is he the main contractor on site? If so he could have taken your price, added 10% then given it to the HO anyway.

Or maybe him talking you up meant that you were able to price the job at your desired rate rather than have to low ball the job in order to get it?

Look at this way, without him you wouldn't have even known about the job and would have no profit at all.

If it was me i'd give him 30% of the profit (not the overall value) after the job is complete.


If however the HO is also a friend of his and you did them a good rate because of this, then you owe him nothing
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Old 04-06-2011, 01:44 PM   #16
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Buy him a 12 pack of his preferred beverage, slap a bow on it and leave it on his front porch. He'll be so surprised when rolls up and find that awaiting him
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