Isn't the $250 Finder's Fee a bit excessive?
Isn't the $250 Finder's Fee a bit excessive?
For starters, it's definitely not cheap.
The RCF doesn't exist to help everyone win.
It exists to help 1 house cleaning company in each major U.S. market dominate.
And before we get too far, The RCF is much too advanced for the cleaning companies who are still boasting about "never spending money on ads". Save it folks. Anyone who ever became #1 in their respective market areas did it by investing into their company's growth. When you say you "never spend on ads", what you are really saying is: "I don't know how to profitably buy clients". (Because if you knew how, you'd do it.)
If you're still with me here, it means the last paragraph didn't offend you off the page. So let's keep going.
Is the fee "excessive"? That's all going to depend on the lens a person looks through. Do they have an abundance mindset? Or do they live in constant fear? Nevertheless, let's dig in and see what we come up with. Let's find out if The RCF is actually excessive in terms of its Finder's Fee. Or, if it's actually the greatest program to ever be made available to house cleaning companies.
The $250 Finder's Fee is only charged for [recurring] clients found within the program. Many times a 1x Move In or Move Out client will come through too (even though we're heavily targeting recurring clients). For these 1x cleaning clients, there is no Finder's Fee. It's very important to note, there is strong emphasis on converting these to recurring clients, but if they never do, no fee is charged.
What's the point of a Finder's Fee?
So that The RCF Program gets paid.
The RCF needs to get paid at some point, right? This way, it never does until you get paid first.
Finder's Fees are never due until you've cleaned that client's house and they've paid their first invoice with you.
Let's be brutally honest. You are too scared to take a risk on a good marketing agency because you're not sure if you'll get results. You can't bear the thought of paying money out each month in both management fees + ad spend to still be net negative. As with any industry, it takes a bit to build a strong sales pipeline. Whenever you start with someone new, you start back at 0.
Initial set up fees, management fees, and even ad spend ... it's a lot to pay out before you ever see a single result.
Instead, The RCF charges a one-time Finder's Fee of $250 for each [recurring] client found through the program.
The $250 fee goes towards the ad spend, management fees, and software expenses it takes to generate these sales opportunities for you.
Make it make sense
Any reputable agency is going to charge a minimum of $1,500 per month for their lead generation services. On top of that, you have to pay for your ads (min $600/mo) — bringing your monthly total to $2,100. Then, let's say they force you to use their software too (another $200/mo).
You're at $2,300/mo already before getting even one sales opportunity.
Over time (and if successful), your ad spend will increase. Granted, at this point, you'll have the confidence to keep doing so, but your monthly cost is still going to rise over time. And you're never guaranteed to even sign a client. You still pay your management fees, ad spend, and software expenses to these agencies even when they don't deliver.
With The RCF, the only time you pay is when you successfully find a new, high-quality [recurring] cleaning client. Unless your ACQ score is negative, then you are subject to the ACQ Tax.
Let's do some simple math
Let's say you're averaging $250 per month per client (across all recurring frequencies) & a 20% profit margin.
This means your company is profiting $50 per month per client.
$250 Finder's Fee / $50 Profit = 5 Months Payback Period.
So now the question becomes: "How long — on average — do your clients stay with you?"
If you are struggling to keep clients for longer than 5 months, you're not a good, reputable company to send clients to. You must fix your client retention problem before trying to fix your client acquisition problem. Otherwise, you're going to dump gasoline onto a fire that will destroy your company.
Picture 12 months from now
Picture 12 months from now with The RCF, you've successfully found 100 new [recurring] house cleaning clients.
But let's say you lose 41% of them.
Now, you only have 60 [recurring] clients paying on (on average) $250 per month.
59 X $250 per month = ~$14,700 per month
This image below helps you understand the full picture of that first year.
You'll get 100 new clients over that first year, but you're not going to get 10 in your first month. That likely won't even happen until Month 5 or 6.
After your 12th Month (based on this graphic), you will have profited nearly $11k and have 59 new clients & +$14,700 revenue per month added to your book of business.
Your second 12 months in The RCF will prove to be even greater. The hardest part is getting started. But with the Finder's Fees not triggering until after you've found a high-quality client, there's no risk at all.
So, is the $250 Finder's Fee a bit excessive?
Yes, it is. For most.
However, The RCF isn't looking for most of you.
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