Referral Fees

Does anybody have an agreement with another businesses that might help find clients (e.g., lawn care companies who have a client whose yard is being destroyed by grubbing critters, moles, gophers, etc.)? If so, I was curious about some of terms of the financial agreement (% of the job, flat rates, etc.). Not sure if this is a worthwhile path to pursue or if perhaps some of these companies would refer their clients in need of nuisance animal removal for no charge.

What are your experiences?

I do not have any formal agreements but share referrals i.e.: bug guys refer me for animal work and I refer them for bug work.
Though a fruit/cookie basket for their office help cannot hurt.

Just like above, no fee involved. Defiantly something at Christmas to the office person. Also have been told by the boss/owner of a couple of bug companies the as long as we do a good job, they will keep using us. They don't want to refer some one that makes them look bad.

No formal agreement but I will give 5% of gross sales to the pest control companies in my area. Its cheaper than a lot of other forms of advertising I use. It can get to be a pain to keep track of all the time. Yes, a lot of the companies will give the referrals for free as long as they know you are reputable, however, when there are two reputable companies side by side money talks. I got the referrals from my best company (close to $100k a year) because "all the last guy gave us was some honey at Christmas time"

X 3

Thanks for the replies. I guess my plan is to contact some of these folks and get a feel for their interest. I can see being able to scratch the bugs guy's back with referrals, but its the lawn guys I feel like I can't really reciprocate (at least not very well). A lot of nuisance calls in my area involve grubbers.

Don't forget moles. Lawn guys see a lot of yards.

I took in good donuts, creamers, juice and fruit after the new year to all the field techs (the guys who actually give out the carss) and they about lost it.

3.00

$3 Jordan? Have you always been so generous?

I paid out several thousand in referrals last year and ill leave it at that. ive got a system that works well for me, but maybe not for you.

I take my lawn care referrals out for lunch or drop off panera bread gift cards

Question, is it fair to offer one company a perk for referring but not others

If your mole trapping I think lawn care companies are your target group. Pest control companies for other work. I will try a 10% finders fee/referral on gross first contract price not on monthly and see how it goes this year.
Kurt temple

Most of my work is skunk and coon digging June bug larvae. My thought is they might hear the landowner complaints about the yard being tore up and could say "I know a guy that could help you out...."

$20 either way......if I refer work to them OR the other way around.

Everybody knows that trappers are some of the cheapest people alive, but some of you guys bring it to an entire new level of cheap.

If I get the referral from somebody I'm selling that job. I can't remember the last time I had a referral that didn't turn into a job. I'm not saying it was a huge job but a job nonetheless.

Some of my largest exclusions on six seven eight thousand square foot log homes with Cedar roofs where the results of refferals. Am i really going to give the guy who gave me that you have a $20 bill?

So does everyone write off their referral fees at tax time? I assume a company check used to pay a referral is pretty easy, but what about the food, cash and gift cards?

From a customer's point of view, I want somebody getting a referral based on their professional reputation, not because they pay out a hefty referral fee at my expense. Furthermore, referrals should be a reflection of customer service and professional competency, not a system of nepotism. As a customer if I was on to your way of doing things, I'd fire both you and the person on took my money to give the referral.

Referral rewards are basically a gesture sauing thanks for mentioning my company...i only give referral rewards that turn into jobs