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Referral Fees or Bonuses From Contractors??

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Posted by: from Ajax
2/8/2013 at 9:18:42 PM

I just wanted to know if renovation companies/renovation contractors offer any referral fees to homeowners like myself who know other interested homeowners who would like to do renovation projects such as a kitchen, bathroom or basement renovation.

Would you be willing to give a referral fee? If yes...

What dollar amount or % amount would you be willing to give for the following types of renovations:

1. kitchen renovation

2. bathroom renovation

3. basement renovation

I appreciate your input and honest feedback.

Thanks :)

REPLIES (4)
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Date/Time2/9/2013 at 9:40:56 PM

Hi Cindee,

Between this and your previous post, I can't really figure out what you are trying to do.

All I can say is that you are setting off a lot of red flags for me and I personally would think twice about working for a client like you.

If you want your basement / kitchen / washroom done, then get them done - get 3 + quotes and go for it.

If you want to become a lead generation company, you are posting on a pretty good one right here and I doubt that you would do better. I also don't like the idea that you are benefiting from your neighbors and "friends"

Just my opinion, FWIW.

Good luck!

Jim Kuzma

Kettleby Handyman Services

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Date/Time2/10/2013 at 4:47:30 PM

Hi Cindy,

There is nothing wrong with asking about referral fees. Referrals are a common in every business. In construction, personal word of mouth referral are the most important.

Most of our referrals are from past clients who show their friends/family the work that was done to their house. When we get a new client based on a past referral, we are extremely happy to compensate our previous client in some form. The compensation can vary from additional work done for the client, discount on future renovation, etc. Obviously it all depends on the size of the job. We feel it is important to show our appreciation to our past clients for thinking of our team when discussing renovations with family or friends.

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Date/Time2/11/2013 at 12:56:02 AM

Cindee

You have asked many interesting questions. You have inqured about multi-job or "group" discounts. You have asked about client motivation for doing basement renovations. You have now asked asked about potential referral fees or bonuses that may be offered by contractors.

I am curious as to what your own motivations may be. Are you trying to to get your own basement renovation discounted? Are you doing so by playing your friends and the contractors off each other? Are you gathering information for a referral company? Are you gathering information to start your own contracting business? I am sorry if I am reading the wrong story between the lines, however I don't think I am the only member reading the same story.

I personally wouldn't get involved with "group" builds. The needs of each homeowner are individually important. It has nothing to do with trying to save them money. It is simply that each home, each job, each need, each idividual has their own challenges. Just because I can offer a certain service for a level lot rancher basement reno that is straight forward with no surprises, doesn't mean I can do the same at the "friends" house around the corner. That 2nd house may have many many issues that were not present in the first friends house. Quite honestly it is not worth the headache. I just walked away from just such a meeting two weeks ago. One homeowner wanting discounts and "bonus" fees paid because he "got" me this other job. I will not play that game.

I would not offer a referral fee ...... Shoppers Drugs doesn't send me a cheque when I send my buddy down there for cough medicine. Just my opinion.

Good luck in your future endeavors.

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Date/Time2/11/2013 at 3:11:02 PM

Hello Cindee

I myself have 2 people that do driveways and they constantly give me people to go see. I usually give them 5% commission off the top or 10% of my profit. It's their choice. I pay the the next day after the job is completed and I have been paid.

Thanks

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