I'm a design consultant for a synthetic turf Co. I made an agreement with a subcontractor that if I needed him for landscape work, I would refer him to my customers who needed someone and he would pay me 10% referral fee of whatever he charged the customer for his work. I've referred him to at least 2 jobs now and he has been very vague on what he's charging them and now I feel he is going to skip out on paying what he truly owes me. No contract was signed between us regarding the fee. I just trusted him. What course can I take to receive what is owed to me for these jobs?
1. Stop referring business to him.
2. Demand your referral fee in writing and ask that he backs it up with copies of the contracts or checks he has received from your client.
3. Come up with your own best estimate of what you think he has charged, sue him for that amount or more in small claims and have him show up with the copies showing the amount was less than what you claim.
Start by asking him for the fees, and making it clear that you won't refer anyone else until you see the contracts he's being paid on and you get your 10%.
If he doesn't respond, threaten him with a "demand letter" for the amount he owes you for breaching your oral contract. You'll need to confer with the referred customers to find out exactly what's owed.
If he still won't pay you, either sue in Small Claims court, or hire a lawyer to increase the pressure to pay you.
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