My boss has recently given me authority to promote the firm and has allowed me to use the company CC for marketing use. I have made lunch plans with an acquaintance who is a successful real estate broker. I plan to give him a tour of the office, show him the exciting projects that we're working on, then take him out to a nice restaurant. The goal would be for him to hook me up with some developers or owners.
My question is... how do I get the broker to be excited about promoting us? By providing a finder's or connector's fee? I have heard about kickbacks by a GC during bidding but that's shady business. But I have been told that's how it works in the real estate world. And if so... how much of a fee do these brokers expect? And would this be upon making contact or after we go into contract?
You should pay a finder's fee to anyone only after the project is 100% complete and your fees are paid in full.
In my neck of the woods, I'm not aware of anyone paying brokers to get work, free SD work for them to show concepts for developing parcels and renovating old buildings is much more common. An unscrupulous broker may then take the SD work you did and shop design fees to do CDs of it around to multiple architects.
Paying a broker for developer intros even if you land work is not common. You might as well research who is active out there and approach them directly.
I beg to differ on the hate for realtors, when you are in a predominantly high end residential market, you build up a symbiosis with realtors and contractors, otherwise nobody knows you. no bribes needed, just good quality and professionalism. But it takes time, the young and restless don't last much.
Thanks for your response David but I was really looking for bad experiences with realtors and contractors referrals for potential work/leads.. was planning on approaching them in my area for freelance work.. I guess JLC-1 clarified some...
Finder's fee
My boss has recently given me authority to promote the firm and has allowed me to use the company CC for marketing use. I have made lunch plans with an acquaintance who is a successful real estate broker. I plan to give him a tour of the office, show him the exciting projects that we're working on, then take him out to a nice restaurant. The goal would be for him to hook me up with some developers or owners.
My question is... how do I get the broker to be excited about promoting us? By providing a finder's or connector's fee? I have heard about kickbacks by a GC during bidding but that's shady business. But I have been told that's how it works in the real estate world. And if so... how much of a fee do these brokers expect? And would this be upon making contact or after we go into contract?
You should pay a finder's fee to anyone only after the project is 100% complete and your fees are paid in full.
In my neck of the woods, I'm not aware of anyone paying brokers to get work, free SD work for them to show concepts for developing parcels and renovating old buildings is much more common. An unscrupulous broker may then take the SD work you did and shop design fees to do CDs of it around to multiple architects.
The best you can reasonably hope for is for the acquaintance to make some introductions. The best of the sales job will be up to you.
No good leads come from RE brokers, everybody hates them.
Paying a broker for developer intros even if you land work is not common. You might as well research who is active out there and approach them directly.
This sounds like just about the worst business development idea I've ever heard. And Miles is right, everybody hates RE brokers.
would love for somebody to elaborate why they hate brokers for BD, less experienced and aware than you guys... tx
I beg to differ on the hate for realtors, when you are in a predominantly high end residential market, you build up a symbiosis with realtors and contractors, otherwise nobody knows you. no bribes needed, just good quality and professionalism. But it takes time, the young and restless don't last much.
Parasites are symbiotic.
Mtdew, what kind of work does your firm do? As in project type?
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