How do you pay someone for getting you jobs? - Electrician Talk - Professional Electrical Contractors Forum

Jaga · 04-30-2009, 07:41 PM

Heres the scenario, just started a Electrical contracting company after receiving my license and getting liability insurance.Trying to get it off the ground, so I will be keeping the day job while trying to build my business. I would like to get it to the point to get steady work, a company vehicle , then to hire a team to do the work and hopefully grow etc.. I was speaking to a Co-worker/friend who mentioned there are several middle-class families in his area that he could probably sell small home generators to. He mentioned they are living week to week like everyone else due to the economy and some probably could not swing a whole house system and we could get a smaller unit for a couple of important circuits to save cost to them. He told me since I have a license he would speak to a couple right of the bat that he knows they would be ready to go immediatly. He wants a piece of the action which is fine with me, but I don't know what is a fair arrangement if basically he is going to be more of a sales figure. How do I come up with a fair finders fee /percent of the job number?

william1978 · 04-30-2009, 08:59 PM

Just pulling a number out of the sky I would say somewhere between 1% to 5%. I have never done it this way either. Good luck with it.

Speedy Petey · 04-30-2009, 09:29 PM

Co-worker/friend? And he wants a piece of the action? Nice friend.

Give him some cards and let him hand them to the people and YOU talk to them. Then buy him a 24 pack of Stroh's.
He does not need to be your liaison, unless you want him to be.

Jaga · 04-30-2009, 10:12 PM

The friend thing is not that serious of a matter to me lets just say he is the guy that can make it happen. I want to pay him a fair wage for his time and get the work at the same time and maybe continue to grow with him.It is a win win situation for me so if he gets a little bit of the action which I believe he is intitled to friend or not business is business and his time is worth something.Is that 1% to 5% on a full contract,or on profit

Speedy Petey · 04-30-2009, 10:22 PM

Quote:

Originally Posted by Jaga

The friend thing is not that serious of a matter to me lets just say he is the guy that can make it happen. I want to pay him a fair wage for his time and get the work at the same time and maybe continue to grow with him.It is a win win situation for me so if he gets a little bit of the action which I believe he is intitled to friend or not business is business and his time is worth something.

Well that does make a difference then.

480sparky · 04-30-2009, 10:35 PM

Well, if he is 'the guy that can make it happen', then you should put him on the payroll. Full time.

MF Dagger · 04-30-2009, 10:37 PM

Or start a partnership and let him share the risk.

Jaga · 05-01-2009, 06:58 AM

Thanks for the info. I wont be jumping in to taking on a partner just started company and I want to build it my way without answering to anyone .Putting him on the payroll full time won't work being there is not full time work coming in yet.I was thinking of a percentage of what he sold after final payment but don't know what percent is fair and whether or not it would come off the whole job or just on profit

jrannis · 05-01-2009, 07:29 AM

Quote:

Originally Posted by Jaga

Heres the scenario, just started a Electrical contracting company after receiving my license and getting liability insurance.Trying to get it off the ground, so I will be keeping the day job while trying to build my business. I would like to get it to the point to get steady work, a company vehicle , then to hire a team to do the work and hopefully grow etc.. I was speaking to a Co-worker/friend who mentioned there are several middle-class families in his area that he could probably sell small home generators to. He mentioned they are living week to week like everyone else due to the economy and some probably could not swing a whole house system and we could get a smaller unit for a couple of important circuits to save cost to them. He told me since I have a license he would speak to a couple right of the bat that he knows they would be ready to go immediatly. He wants a piece of the action which is fine with me, but I don't know what is a fair arrangement if basically he is going to be more of a sales figure. How do I come up with a fair finders fee /percent of the job number?

Check your PM

Jaga · 05-01-2009, 07:38 PM

PM????

steelersman · 05-01-2009, 07:42 PM

Quote:

Originally Posted by Jaga

PM????

PM means Private Messages. You have a PM box that people on this site can send you private messages.

steelersman · 05-01-2009, 07:43 PM

you'll find it at the top of the page on the right hand corner under your screen name. It says Private Messages. Click on it.

oldman · 05-03-2009, 08:59 AM

the easiest way is for you to figure out what you need to do the job...and anything he sells if for above and beyond that is his...

BDB · 05-03-2009, 10:40 AM

Quote:

Originally Posted by oldman

the easiest way is for you to figure out what you need to do the job...and anything he sells if for above and beyond that is his...

If you like and agree to this situation and do not like the idea of a partner then I would say 10% of profit.

brian john · 05-03-2009, 10:54 AM

I work with several folks that are excellent at sales, typically they take my number and mark it up. That way they taker what they want, I have never had an issue with any of them.

The few times we went direct I put in between 5%-10% commission for them.
It does depend on the size of the project, smaller sales need a higher mark up to make it worth while for the sales person, but a $500,000.00 project might be 2%-5%.

Though often smaller projects happen fast while a $500,000.00, may take months and months to come together.

wildleg · 05-03-2009, 09:45 PM

just send him some money (check or cash). if its not enough, I'm sure he'll let you know

Jaga · 05-03-2009, 10:53 PM

Thanks for all the input you all have been very helpful