Inspector sub contract

Hey guys I am a former member here and have about 7 years experience as a home inspector and 15 more in home building or remodeling.
I closed my HI business due to slow real estate market in my home area. I had to take a full time job with benefits for the family.
I recently was asked to come on board with a HI franchise owner about 40 miles from my home . They will supply all insurance and software, I supply vehicle, gas, most tools and my experience. They made an offer of a percentage pay for inspections they booked and a little higher for inspections from agents that I brought in from my home town.
I’m looking for advice from other inspectors that may have either worked for other companies or have employed inspectors to see what is a fair “going rate” of inspection percentage. I feel 30% is a little low but it may be what a national average would be. if I was a newbie then I could see this amount due to training etc.
Any thoughts or advise would be greatly appreciated.

I am not working under an agreement like that, but have talked to inspectors who are working as 1099 contractors for inspection firms, not franchisees and they are between 35% and 50%. As 1099 contractors, they aren’t doing any marketing, bookkeeping or business related tasks. Just inspections and cashing their “commission” checks. 30% seems low, especially if you are doing more than just the inspections/reports.

Since you will bring everything except insurance and most clients, (software is a cheap benefit and a negative if you need to learn a new system), and are 7 years experienced, I personally would not participate for less than 50-60%.

Note that different areas of the country will demand different fee’s. Large metro (New York), small metro (Omaha), rural (Owatonna), etc…

I would agree with Jeff.
Way back in the 80s, I worked for a company that paid 33%. I collected the data, and then, the secretary had to decipher what I wrote. That was it.

Fast forward to today. I would assume, that if they are providing software, then you will be doing the inspecting as well as compiling the reports. If that is the case, why would you work for less than half of what someone is making off of you?

As for insurance, if you are an independent contractor, you should be paying for your own insurance, I know my wife has to, but, if you get a 1099, then you can deduct a lot of items on your taxes.

Personally, I wouldn’t do it for less than 60%.

60% seems fair

I would tell them that for any less, it makes more financial sense to be an owner and with that rate you’ll have no incentive to start back up again. You owe it to yourself with all your experience, and a family to support. 40 miles is a ways in time and space, if you’re traveling there. If locally, then they’d have to travel 40 miles to where you already are, it’s worth less to them. If they got a good marketing campaign going on, if they don’t get someone it’s all money down the drain to them.

Start the negotiation with a high number that sets the expectation. A little late for that as they already have done that with you. Make your percentage not a whole number like 60, but 64% or 63%. Negotiation studies show it works. Maybe drop to 51% if they are tough.

My guess is they low balled you initially so you would take 50% and feel good about it

I’d use previous clients as a gambit for a higher percentage. Like “We can share the fees a flat 60% rate for everyone, including previous trusting clients that I am bringing in, OR we could share 50% on your lead generated clients,
or share 80% from my previous, proven clients. Which would you prefer?” Then silence on your part till they respond. You have already spent years developing those client relationships, don’t give it away.

Hope they aren’t reading this MB lol

Best wishes to you Sir