# If you were a commercial builder, would you pay 10% for referrals?



## Brandon L (Feb 6, 2010)

MLCcarpenter said:


> 10% is very unrealistic. Clearly you don't know what you're doing.


I know exactly what I'm doing as far as what my company is offering. What I DON'T know is what commission is fair and realistic with commercial contractors, hence why I started the thread. Your opinion of 10% being very unrealistic is exactly the type of info I need to know and what I was asking the entire time.


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## donerightwyo (Oct 10, 2011)

So will you want your million in cash or will a check be o.k.


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## Brandon L (Feb 6, 2010)

mrcharles said:


> We are the GC at the top. Remember there is a difference in profit and general conditions.


I thought of that after I hit the submit button. Cool.


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## Brandon L (Feb 6, 2010)

donerightwyo said:


> So will you want your million in cash or will a check be o.k.


Rather than a rolling eyes emoticon and your joke, maybe you could contribute some constructive feedback. Even telling me the 10% is ridiculous (which it seems to be) is more constructive than your humor.


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## griz (Nov 26, 2009)

The other thing to remember is a GC capable of bidding a $10m plus job & then pulling it off, probably does not require a middle man...

If you were to add bonding to that job....the guys that can do that DO NOT need you...

The folks that put out/design/develop the high dollar jobs more often than not have a group in mind, usually by invitation, to bid this stuff...


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## ryanshull (Nov 1, 2012)

Brandon L said:


> We plan on referring several $10 million+ commercial development projects to commercial builders. If you were a commercial builder, and we sent you referrals already sold, requiring no closing, would you pay a 10% commission on the dollar value of the contract (gross)?
> 
> Brandon
> 
> Edit: I'm talking projects like company headquarters and manufacturing facilities. Big projects.


I think you are in over your head there, buddy. I don't think you are a scammer, you are just completely ignorant.


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## Brandon L (Feb 6, 2010)

ryanshull said:


> I think you are in over your head there, buddy. I don't think you are a scammer, you are just completely ignorant.


What makes you assume that? I'm all ears.


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## donerightwyo (Oct 10, 2011)

You seriously thought a 1 million dollar commission on a 10 million dollar job was gonna happen?:laughing: I would think the fellers you represent would be a little upset about such a deal.. 

I apologize for the humor:no:


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## Brandon L (Feb 6, 2010)

griz said:


> The other thing to remember is a GC capable of bidding a $10m plus job & then pulling it off, probably does not require a middle man...
> 
> If you were to add bonding to that job....the guys that can do that DO NOT need you...
> 
> The folks that put out/design/develop the high dollar jobs more often than not have a group in mind, usually by invitation, to bid this stuff...


Yes, that is definitely true. But because of the specific incentives offered by our company, they WILL go through the companies we select. They have no choice if they want the incentives.

Brandon


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## ryanshull (Nov 1, 2012)

Brandon L said:


> What makes you assume that? I'm all ears.


Just take a look back at the other answers you are getting. How can you sell a contract when you have no idea what it entails?


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## MLCcarpenter (Dec 11, 2011)

So if you are the gc you are basically trying to find out if 10% profit is acceptable. Just stop beating around the bush and explain the situation if you want any help here. 10% is not realistic in this economy. Especially for a 10+ million project.


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## Brandon L (Feb 6, 2010)

donerightwyo said:


> You seriously thought a 1 million dollar commission on a 10 million dollar job was gonna happen?:laughing: I would think the fellers you represent would be a little upset about such a deal..
> 
> I apologize for the humor:no:


No, I didn't assume it was going to happen. That's why I came here and ASKED! I had no idea. My main company is not in the trades.

Apology accepted... lol


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## Brandon L (Feb 6, 2010)

I guess it's safe to say you guys answered the question about the 10%. What % is fair? The goal is to keep the commission over 5% for certain reasons. If we can't get 7% - 10% of gross, then we definitely can't offer the incentives like we had originally planned.


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## ryanshull (Nov 1, 2012)

Brandon L said:


> Yes, that is definitely true. But because of the specific incentives offered by our company, they WILL go through the companies we select. They have no choice if they want the incentives.
> 
> Brandon


You really have to be more specific about "incentives" and how your "company" is going to offer them. 

We pay you to pay us to pay them?
No, wait, its mob protection, isn't it. Makes sense that way.


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## donerightwyo (Oct 10, 2011)

So your going to offer 5-10% incentive, and then back door them with a 5-10% commission?


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## Brandon L (Feb 6, 2010)

ryanshull said:


> You really have to be more specific about "incentives" and how your "company" is going to offer them.
> 
> We pay you to pay us to pay them?
> No, wait, its mob protection, isn't it. Makes sense that way.


The incentive is not money. It's one our company's services. I'm not discussing the incentive in detail. That wasn't the purpose of the thread.


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## Brandon L (Feb 6, 2010)

donerightwyo said:


> So your going to offer 5-10% incentive, and then back door them with a 5-10% commission?


No.


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## MLCcarpenter (Dec 11, 2011)

I'm pretty sure you are going to scare off these perspective companies. You're being way too greedy.


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## Brandon L (Feb 6, 2010)

MLCcarpenter said:


> I'm pretty sure you are going to scare off these perspective companies. You're being way too greedy.


Again, I didn't know 10% was "greedy". That's why I asked. Is that so hard to understand? I do appreciate your feedback though. Don't get me wrong.


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## donerightwyo (Oct 10, 2011)

So what else do you want to know that we can help you with on such limited info?

I will pay you 50%, if I can have 50% too.:thumbup:


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