Alright, so I own a handyman company. I use my mobile app that lets property managers, (my primary customers) to email a work order to a database, and that database present the job request to other handymen I have working for me via my mobile app. So essentially, my app is a job board, and the handymen I have signed up are the contractors who get to pick and choose what job they want.
So far business has been going very well. I still have a lot of kinks to work out, but I am thinking long term with this post. I need to expand to other major cities, but I don't have the money or the time to go to each individual city and set up shop, so I am trying to think of a way to expand and basically have a business manager take care of the expansion. But there are problems with just hiring on a business manager to do it for me, the biggest of which is I don't have the extra funds to pay for a business manager. so I am looking for alternative ways of compensating a business manager to find new clients(property managers), and new contractors.
I have tossed the idea of paying a commission based salary but didn't think that would be enough to get a business manager interested. For instance, we charge our customers $75 per hour. We pay our contractors $60 an hour and take $15 per hour worked, (20%.) So if a contractor works 2 hours on a project, to ultimately charge the customer $150, we would take $30. I was thinking it might be worth looking at giving the potential business manager 5% starting off, then 10% once a certain milestone has been hit, like 100 jobs from the same customer or something similar.
Using those numbers, let's say we have 10 contractors, each working 1 1-hour job a day. That would come out to $750 total charges for that day. $600 of which would cover wages which leaves us with our 20% take of $150. we'd give half that to the potential business manager so they would make $75 a day. multiply that time 30 days a month. thats $2250 a month. To set up a few clients, get a few contractors on board, and manage them from time to time.
Does that sound fair? or doable? would you do it? I mean that amount would cover rent and most if not all of the work being done here would be passive, meaning you could do it on your own time.
One of the problems with doing it this way is getting that 10% market share back from the business manager, once the business is up and running. Don't get me wrong, I am all about fair work and fair compensation. Equal pay for equal work is very important to me. I don't want to screw anybody out of anything they helped me do or did themselves, but 10% of the market share per location definitely adds up. So how would I taper off the business manager once the business has been established and is running smoothly in that particular location in a fair and reasonable manner?
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