Anyone know anything wrong with paying people to advertise for you? What I mean is putting out brochures and offering people a certain percentage of the job if they refer work your way, if the job is accepted. I have thought about putting in the "advertising package" that I plan on giving them, a disclaimer saying they will be responsible for the taxes on the money they earn. This should treat them like a subcontractor. If they would happen to make enough at the end of the year, I could send them a 1044 form. What do you all think? I feel like it could turn into a profitable business for someone, plus help me too. Thanks.... Steve

SparkyNC:
For what it's worth, I believe that your best advertising is a satisfied customer that will refer you. Freinds of mine have mentioned that they feel the contractors who advertise, and offer "10% discount coupons" are more expensive to start with. We tried handout advertisement (color brochure) to about 30 car dealerships for lot lighting service. Never even got a call! Perhaps this is dependent on the area that you are in. We are in a large densly populated area of NJ.

That thing of the sub contractor thing; ya ever discuss the insurance issues of subs with your agent??? Be careful my friend!!

If you do it, I wish you luck.

John

SparkyNC,

I don't see a problem with this, I've done simmilar things. If someone brings me a builder that I wouldn't have gotten otherwise, I give them a cut of the related jobs.

I might suggest you use form 1099, though.

Electric Eagle, Thanks, I didn't think "1044" sounded right.... I've put out a few posters, and I've drawn up a "introductory package" explaining the program, with the rates allowed, and a disclaimer that exempts them from any obligation except to provide their names and address and phone number to the customer, to validate their eligibility to receive the premiums that I have offered. I've also stated that they will be responsible for the taxes on any money they receive. I've offered references, both job and character, to give them confidence in what they are doing. Expecting good results for me and them also. Thanks again.... Steve