Company vs Referral Agency Business Models - Cleaning Talk - Professional Cleaning and Restoration Forum
 
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post #1 of Old 08-24-2016, 07:18 PM Thread Starter
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Company vs Referral Agency Business Models

Hi Guys and Gals,

I am new to this forum and please be easy on me.

We bought a cleaning business company and we have been operating this business for almost two years. As cleaning company, we provide everything to our cleaners; cleaning supplies, fleet, cell phone allowance, workers comp, etc..

Is there anyone here who can provide your insight between these two business models? We are planning to shift our business as a referral agency to get out from those expenses.

Any input will be much appreciated.
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post #2 of Old 08-26-2016, 01:19 PM
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Shifting to a referring agency

Do you mean to move your business into a ThumbTack.com or HomeAdvisor type of service provider.
Both of the Service Companies sell leads to their service providers. ThumbTack (I am a service provider for them) charges$_____ for each lead sent to the service provider. ThumbTack.com leads look like this:

I get an office cleaning lead for OFFICE CLEANING REOCURRING located in my service area ( this is filled out when I sign up with ThumbTack.com) the office cleaning lead costs me $_____ and I am competing with 0-5 other service providers for this lead/job.

HomeAdvisor I think charges a monthly fee or you pay for each lead, to be honest I have had 0 jobs from HomeAdvisor plus headaches the 2x I tried them, so I am done with home advisor

Hope this helps,
Brad www.bdjanitorial.com
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post #3 of Old 08-26-2016, 02:07 PM Thread Starter
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Thanks for your reply. Right now we employ our cleaners and provide them workers comp, cleaning materials, fleet, name it ... and we are planning to run it as a referral/domestic agency. We would like to know if the transition is easy and what is the profit margin? Is better than running it as a company?
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post #4 of Old 08-26-2016, 04:47 PM
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Sub-contract

Look at sub contracting for your current employees? There is a Building Service Provider out here that subs out the janitorial accounts she gets, I think she takes 25-40 % of the gross. It's been along time since I spoke with her about her business. Try it out with 1 employee or run the numbers on 1 account to see if it would work.
Brad www.bdjanitorial.com
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