Bkessler

I used to work for a local referral company that charged 9% over all job, including material. There ad says it is a fee service but they tell the contractors just add 9% to the job. The problem I had with them other than the crazy owner, they want the same 9% for repeat business, if the neighbor uses you, if some one in the same neighborhood see's your truck or yard sign and calls they want 9% of everything, which was the part that always made me keep some distance from them and not get dependent. Now that I do not take there calls they still want 9% of customers who first used me through them. And there are a few general contractors who use me regularly as well they want 9% of. They say I have to pay forever and I tell the customers I am not affiliated with them any longer so the question is is this referral company crazy, I have talked to almost all of them at some point and there are a couple I like, but this is the only one that wants repeat and customers who contact you directly to pay. Is this a normal situation?

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itsunclebill

You had best review any contracts you signed. Most referal companies tie you for a year on a particular customer, after which you're free to service the customer without a referal fee.

If they didn't refer you to a particular customer it's hard to see how they can get their percentage.

AND you should have a lawyer review the contract

14awg.com

I agree with itsunclebill, if they are still asking for the 9% on clients they did not refer, I would talk to my attorney. As for the contract if it states a year or so of work then you’re out of luck but still the 9% on clients they did not refer that sounds fishy... I would undoubtedly take that to my attorney.