I do good work for a fair price, so I don't have to pay for referrals. Frankly, I find your questions petty and insulting.

wow.

Let's put it this way, Skil77: why would you not want to increase your business? Giving current customers a small "thank you" for new client referrals would seem to be a less expensive and more effective marketing tool than many other forms of advertising.

My entire business was from referrals. The only advertising I did was handing out business cards during a conversation. I got a lot of repeat business, so found ways to reward those folks during subsequent jobs.

Now, I did not do multi thousand dollar jobs, most were below $500, so that may be under the radar for a $20 or $30 Thank You. Especially when my $400 job would have been someone elses $800 job.

" What gives, contractors??? Why aren't you rewarding your customers for being your most valuable marketing tool?"

IF, and ONLY IF there is an existing agreement, OR, if I'm referred to an unbelievable project, will I give a referral FEE, and make no mistake, it WOULD be a fee, if it's expected. For example, Next year, there's a good chance that at this time, I'll be already started into a project that will take me and my crew of 10-15 people about a year to complete down in Richmond, Va.. You can BET the person who referred me to that project is going to get a thank you. However, If I get referred to a project that's say, a 2500.00 kitchen floor, by the time I'm done with materials and paying my crew, I'm already making very little, relatively speaking, as in not much more than if I were on someone else's payroll. Now I'm going to give some of THAT away? I'd rather pass on the job than work for nothing. I found that out the hard way, a few years ago, because I DID list with a referral service. Sorry, not interested.

I've given lots of referrals for contractors and never expected them to give me a thank you note, a gift basket, or a discount on future projects. I'm usually giving them as a referral for a friend or family member (but not always) because they have done good work for me and my motivation for doing so is that I want the next person to get a good job, too, not because I expect to get anything in return.

"What gives, contractors??? Why aren't you rewarding your customers?"

If a contractor has given me a quality job at a fair price, that's reward enough for me. The contractor was the one who did the good work; why should I be rewarded for it just because I passed his name on to someone else?

The way I see it, if you're passing my name on, it's because I did a good job for you, and you're trying to HELP A FRIEND get that same quality.

It can go both ways, if they did a bad job you can tell that in the referrals. I feel that the referral is just a neighborly thing to do to help other homeowners know if the contractor is legit or someone to avoid. Has nothing to do with the contractor's marketing. You should feel proud to give referrals as you are contributing to the world in a good way. Now if you are giving a ton of referrals it might be worth asking the contractor about it. If you are getting a lot of calls and it is getting annoying, then maybe the contractor can throw you a bonus for taking the time out of your day to continue to give multiple referrals.

**IF, and ONLY IF there is an existing agreement, OR, if I'm referred to an unbelievable project, will I give a referral FEE, and make no mistake, it WOULD be a fee, if it's expected.**

It sounds like a great procedure for a more formalized partnership arrangement (whether one time or on-going). I'm talking about showing appreciation to the average project price residential customer who has helped secure other projects with other residential customers.

**a 2500.00 kitchen floor, by the time I'm done with materials and paying my crew, I'm already making very little, relatively speaking, as in not much more than if I were on someone else's payroll.**

That's understandable. Still, a handwritten thank you note only costs 49 cents to mail! :)

What I find most amazing is that a guy who did some minor work for us in 2014 personally gave us a small tin of gourmet popcorn in December to thank us for our business, but that the contractor that we paid $33k to for our remodel AND gave several solid, qualified leads to didn't even send a card. Whether other posters are in agreement or not, it did leave a sour taste for us.

You are referring a contractor because he does his job well, not because he has a masters in marketing. His skillset doesn't lay with schmooze. Also, why should he inflate his costs to someone else to give you a %? Would you have paid $3000 more on your job so that he could give that to the friend that referred you?

I'll go further than a note. I'll thank someone in person if they recommend someone to me and they end up giving me work. I'm more of a face to face kind of person. When it was mentioned above about thanking someone, it sounded, at least to me, like it was a financial thank you that was inferred.

A fruit basket or a dozen gourmet cookies doesn't cost $3k, Sophie. Seems like a very minimal investment for receiving qualified leads that have turned into add'l business.

<< Let's put it this way, Skil77: why would you not want to increase your business? >>

If I had to pay people to say I do good work, I wouldn't deserve more business.

Exactly right.

Skil77 -- Thanking your customers in some way (a note, a small gift, a small discount toward future work) for qualified leads that turn into new customers is just a smart business practice (as well as good etiquette) and the "icing on the cake" of having provided good service. They're doing something helpful and nice for you -- why would you ignore that?

Having not been thanked for the valuable referrals we've given, along with the push-back I'm seeing in this thread, is leading me to decide to keep my lips zipped when someone in my neighborhood or circle of acquaintances issues a "call out" for contractor recommendations. After all, there are plenty of great contractors in our area from which to choose, so if we're not going to be thanked by our contractor for "elevating them from the pack" and helping them build their business, I won't bother. They did a good job for which I gave them good money, so we're even and that'll be the end of it.

<< Thanking your customers in some way (a note, a small gift, a small discount toward future work) for qualified leads that turn into new customers is just a smart business practice (as well as good etiquette) >>

Putting a price on good will is not good etiquette, at least not to me. I'm happy to recommend someone who does a good job, because it's my pleasure to do so. Likewise, when my clients refer me to their friends, it's because they like me and my work, not because I paid them off. I think you have a lot to learn about life.

Contractors give other contractors recommendations on homeowners as well. Having expectations for a kickback will get around for your review as a customer.

I was just sittin here thinking about this. Both houzz AND Angies List have asked me to contact my customers and ask them to write reviews and post them on their respective sites, that it would up my rating. Personally, if I have to ask someone (or as you're saying, give them a gratuity), I'd prefer not to have it, because then it's tainted, and I get more than enough referrals without having to ask.

It would be nice if a contractor/pro acknowledged a referral from a previous client. A text or quick thank you email, in today's world really doesn't take a lot of effort.

Most contractors businesses don't run like clockwork. Some people are good at Thank you cards and letters. Some are not. I don't think it is malicious on the part of contractors. Gifts and appreciations are wonderful when you don't expect them. I think you should relax and smile when you get them and not worry about it when you don't. Expecting a gratuity is...aggravating, yes?

I don't have a problem with some kind of thank you. In fact I make sure I thank those who've recommended me. What I have a problem with is those who do it with their hand out and an expectation of compensation. It's one thing if I give it voluntarily. It's quite another if it's required.

Personally, I trust a person's referral less if I know they are getting a kick-back. Been burned once or twice by "yelp reviewers" who, after I used the company based on the good reviews, I learned they were rewarded for their good reviews...

I would give more credence to a referral that is freely given. If I knew that the person giving the referral got a gift or discount, I would wonder about their motivation. Also, I give referrals on all kinds of businesses. I just gave the name of my vet to my neighbor who has a sick cat. I don't expect the vet to give me a discount for that.

A thanks from the contractor would be nice, but not expected. I would rather hear a good report back from the person to whom I gave the referral. Sometimes being helpful is its own reward.

If I recommend a pro to family or friends, it is because I want those folks to have the benefit of the pro's help. An email thank you would be nice but even better, do a good job for my friend or relative.

I think it would be different if the pro called me and said, "I have some prospective clients, would you let them in your house to see an example of my work, and answer questions?" Then a thank you note would seem appropriate.

Kickbacks to previous customers for referrals are illegal in many states. If your guy is licensed, he may be unable to express his gratitude monetarily.

When you're contractor finished your job on time and did a great job did you offer a bonus?

When someone asks me about any business I have used in the past and I have had a good experience with them ,I recommend them,If not I tell them I don't recommend them.I don't expect anything from it.

When asked for references I don't give out my previous customers names or number either.I have done a good job and been paid.Why should they be bothered.I have done enough commercial work in the area that people can walk into a bank or car showroom and see my work without bothering my past customers.I also have a portfolio of previous work.

Precision carpentry I agree with you on most points in above post except looking at a portfolio of photos of previous work as a single means of determining work quality. I got burnt really really bad by looking at photos as a means of determining quality work. Even with a KD referral, the finish work was soo poor, I didn't even consider either for my kitchen re-do. For 6 months, I couldn't sit in LR without getting pissed off at my 5 figure loss. If the finish work is important to me, which 99% of the time it is, no way would I now take photos to determine quality work. That project scarred me for life! :-)

Mags438: This can happen but as a contractor,sometimes this is all we have.I don't believe in giving out past customers numbers for referrals .I've done a job for you and you have paid.I don't think you should be bothered Some poeple I have worked for over the years do offer. I do try and take detailed photos of trim and finishes.

I am lucky to have done several commercial jobs in the area so my prospective customers can go into some public buildings and se my work.

My contracts are very detailed and my work will please you when I'm done.Unfortunetly,there are some hacks out there.I live in a smaller town that had a lot of factories go out of business.When these people lost their jobs a lot of them that owned a PU truck and a hammer became carpenters overnight.

I always, always, call contractor referrals. If you, as a contractor, are unwilling to give me 3 referrals of people who you did past work for, I won't hire you. I guess that is a business risk you have to decide on... But, I won't hire someone cold; even with pictures. (Pictures are too easily "stolen" as well, they don't tell the whole story.)

Guess I won't work for you.After you have done business with and paid a contractor for his services would you appreciate endless calls from strangers asking about his work?

As I said I refer potential customers to commercial work I have done that they can go see in person.I could use all my friends,my cousin,my mom as phone referrals if I was dishonest.Nobody would ever know the difference

Do you think even an honest contractor will point you to a customer that would give him a bad referral ?

jewelisfabulous - You want the contractor/vendor (which is it?) to give you a discount on your future job if they are hired by your neighbor for a different job?

One question: Who bears the cost of your discount? Certainly not you, obviously.

The world gets ugly real fast using your reasoning.

Kirkhall-- you say you won't believe pics, and I agree-- no one's going to show pics of their failures. The thing is, the same can be said of referrals. You want a good indictor? Ask him if he'll give you a referral of someone where he had difficulties, not expecting him to do it, but to see what his reaction is. If he tells you he's never had a problem. be afraid. Be VERY afraid. I was even just talking about this with a bunch of other contractors on Facebook-- any contractor in ANY trade who says he's never had a problem or failure on a jobsite, has either not been in the trade very long, or is a blatant liar. Either way, not someone you want to hire. the difference between a quality contractor and a fly by night is how they handle it. If they try and put it off on everyone else, and refuse to fix the problem, that's a fly by night. If, however, they do their best to find the root cause, and fix the problem, that's you're quality contractor. As for me-- mine was actually very public several years ago, and even in both this forum and John Bridge's site. We even had TCNA board members in on it trying to figure out what happened. One way or the other, I ended up redoing the problem on my own dime, and changing up on a couple of things-- one thing that I'd done, and one that the homeowner had done, and the problem didn't present itself again.

Help Solve Mystery? Marble Tile Floor Always Wet in Some Areas (26 pages of it!)

Precision--I would know the difference. I dig a little deeper than most. And, frankly, you sound like someone who'd pass me up as a customer. That is fine. I take no offense.

And, I am happy to take referral calls. They take all of 5 minutes. I've served as a referral for every contractor I've been satisfied with. (And, I expect no return. I just like others to have confidence they are about to hire a quality contractor. It is probably my personality type though, as I serve on 4 different non-profit boards voluntarily... I am basically a full-time volunteer.)

I do ask for someone he had a challenge with. And, I ask the people he gives as referrals what type of work they had done, and then what challenges they had with the contractor. If everything is hunky dory for all 3 referrals, I keep looking. I'm more interested in how it was resolved, and if it was resolved to their satisfaction... (as you say, Bill) I've had pretty good luck with my list of questions I ask (in person or on the phone, because I want to have a conversation and hear the reactions to my non-standard questions). And, I've passed on a contractor or 2 (and, I've had a contractor or 2 pass on me too, which is fine).

kirkhall: You sound like a smart consumer and I wish I had more customers like you.I just don't believe in the referral thing unless the past customer offers.I don't ask.