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Referral Fees

MacPHJr Member Posts: 66
Just wondering if any of you guys get charged referral fees from other contractors? What seems to be the acceptable percentage, per job?


  • MIke_Jonas
    MIke_Jonas Member Posts: 209
    No how, no way

    I don't give nor do I accept any type of referral fee.

    If there is something one of my customers' need that I can't provide, I give them my choice of contractors who would best fill that need.

    I don't take/want/expect any money from anyone who gets work from me.

    What I DO want is the peace of mind that my customer is being taken care of. I look at it as my name and reputation is at play here as well, since I'm the one doing the referring.

    When a new customer calls me based on a referal from another contractor, I thank that contractor and let them know job status and how things turned out. No money changes hands.

    I know some who do this back and forth, it's just not for me. I want my referrals to be based on quality of the work, not based on who gives back the biggest percentage.
  • Gordy
    Gordy Member Posts: 9,546
    edited July 2010
    If only

    Everyone had a business mind set like that Mike..  Usually one hand washes the other, money is not everything for a good business model. 

  • Wayco Wayne_2
    Wayco Wayne_2 Member Posts: 2,479
    Bad taste

    I just gave a price for a good sized radiant floor to an HVAC contractor. He called me and said we got tyhe job and would I give him a 500 dollar finders fee. What the heck? I'll probrably let the job go. If he wanted money for connecting people he could have added to the price and taken a fee from the GC or homeowner. My price didnt include greasing his palm. He can go scoop poop.
  • jpf321
    jpf321 Member Posts: 1,568
    who's to say

    who's to say that he didn't already mark up your services to the GC or HO .. and is also playing the other side by asking you as well .. 
    1-pipe Homeowner - Queens, NYC

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  • TomS
    TomS Member Posts: 62
    Bad Taste

    When you advertise you could easily spend 500 dollars to get customers.  Also, on the retail side there is all kind of "refer a friend" promotions where a customer can get cash back for referrals. I have seen these for car dealers, Internet providers, home builders, and a host of others.  So far the posts on this topic seems to imply that referral fees are not ethical - but I wonder.
  • toohardtodo
    toohardtodo Member Posts: 1

    where I am from, its called a KICKBACK and is against the law
  • Unknown
    I`m with Mike Jonas,,

    referral fees are ridiculous,, "that" contractor is relaying the information to the customer for "the best person to do the job", based on his/her experience, no kickback!

    Would these contractors help "personally" if you yourself was in financial difficulty?

    Believe-me,, its dog-eat-dog today!

This discussion has been closed.