compensation for leads 3

[skip555]

I was wondering what some of you would think a fair compensation for a good lead would be

a saleswomen at the local CLEC has been recommending me for moves ,cabling and new equipment to some of her customers. I would like to start compensating her but Im not sure what $$$ would be appropriate

the leads she is providing are generating $300 to $3000 initail but then I usally wind up turning the lead into steady customer so its a ongoing revenue source.

are any of you working with anyone this way if so how are you handling it ?

 

[daronwilson]

Assuming you are talking about politically and morally correct compensation.....

I've done fixed amounts like $50 for a lead if it gets us in the door and we can bill for work. The cable company here will give me a $50 finders fee if i talk a customer into using a cable modem for example. I personally like the finders fee thing rather than a percentage, unless the person is going to sell and market for you.

Of course the flip side is you are now 'partnered' with them from some peoples stance. We quit doing that for long distance years ago so we could recommend alternatives to our customers and be able to say "We don't make any money off this choice, we're here to help you decide" unlike many vendors who had a favored choice that paid.

Another thing we do with alarm monitoring is comp the customer a month of monitoring for a lead that pans out. We credit them $19.95 if someone calls and orders monitoring and says our customer told them about us.

Hope that helps.

It is only my opinion, based on my experience and education...I am always willing to learn, educate me!
Daron J. Wilson, RCDD
daron.wilson@lhmorris.com

 

[buitenhek]

Dear Skip555,
I have paid 2-3% of the total actual profit dollars. I tell the lead generator that my bid will be competitive and that the finders-fee is calculated in the sell price.

I also need 1099 information for that person and ask approval to send the form to their home.

Any follow on work is paid at the same rate for 1 year. If significant business is obtained (one contact helped us win a $1M project at 30% GPM), they keep coming back.

I list the expense under advertising and occasionally (when very competitive bidding) have a zero markup on the cost.
Regards,
Peter

 

[jerryreeve]

One question to ask your source is whether or not anything you do might jeopardize their position with the CLEC since most CLEC's would consider compensation for a referal as something due to the CLEC and not the CLEC's employee.

JerryReeve
Communications Systems Int'l
com-sys.com

 

[skip555]

thanks for the replies It gives me some idea on what to do

I meet with her friday and she says " with all these good leads I've given you I really need to get something out of it"

quickly reveiwing the answers you guys gave me plus some ideas of my own I respond " well what do you have in mind"

"well she says Id like a couple of jacks installed in my house when you get time"

"done" I say

turns out she lives about two blocks from me so I can walk over and do it

 

[ANFPS26]

Good deal!

Jim

 

[PhoneGuy2000]

maybe you can send her some leads in return

 

[phgirl]

Good Job skip555!! As a former employee of a CLEC, it is refreshing to hear a vendor wanting to say thanks for the assistance. The CLEC I worked for frowned on 'partnerships' with vendors so my rule was to always supply my clients with (3) vendor choices (complied on the phone system and misc. needs), it was then up to the client to decide. What PhoneGuy2000 also suggested was good, it is always nice to hear YOUR name being mentioned kindly in business. Since $$is not always the objective, professional flowers, local AA baseball tickets or a pizza worked for me!