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Paying Locators On Commission


gdbutler
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Has anyone tried paying a locator or locators on commission? I'm thinking about trying to hire a few private locators (by posting on craigslist, etc.) and paying them on commission. Maybe a rate similar to what I would have paid the location for a commission, except pay it for a certain amount of time for a location. For example, if the locator gets me a location that grosses 15 a month, I could pay a commission of 20% for the first year. I know there is probably not a good success rate using locators found through craigslist, or whatever, but my thinking is that this would help to encourage them to find higher dollar locations. Any experience or ideas?

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  • 1 month later...

Greg,

I'll give it a shot on two conditions!

1.  We make it 30% of gross.

2.  You pay the full amount after the first month's report comes in.

So for example if the location does $20 the first month.  Then you would pay $20 + 12 = $240 X .30  = $72!

That almost sounds fair to me!  The only thing I don't like is waiting to get the money!

But seriously, for fun, I'll do 1 location that way for you!

Regards,

Rob

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  • 2 months later...

Although I love your idea and where you are going with it.

IF, I was a locator. I wouldn't do it this way due to the fact that Jane Doe has the spot but decides to not pay. Except for civil suit, Jane has nothing to lose. Where as if you pay the locator in full, He/She has a reputation to create and protect and relies on recommendations from previous customers to keep putting food on the table for his/her family.

For the commission aspect, I honestly believe there would be more Locators getting screwed vs. vendors getting screwed by the locator by paying the locator's fee up front.

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I guess though as a locator, if you did this - you would really make your money off of repeat customers. Yea, some people might screw you over, but they can only do it once. Maybe someone like Rob would offer this to only his repeat (loyal) customers.

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