Who says clients don't pay for modeling?

[gpickren]

These two examples are not in conflict. It sounds like to me that the guy in DC is fully experienced in making the sales. Note that sometimes he makes the sale himself and brings in the contractor. Other times he sells the contractors lead. I will bet you that he deals with contractors who could not do either the design/build sale or the design without him, therefore he is worth whatever he can get as long as he doesn't load the deal with so much on the front end that there is no profit for the contractor. This is what I meant by value added.

In contrast Lew is dealing with an experienced design build firm which is already capable of performing all of these functions and are simply interested in enhancing and increasing what they are already doing. In that situation Lew gets paid on on job training while learning to implement and sell design build. Very fair exchange here. This firm is saying that they would like to use Lew on some of their jobs. Fair enough. Lew apprentices with them and profits when he can add the value of his new expertise to a less sophisticated contractor who can greatly benefit from what Lew has to offer.

The difference in pay is the difference between and employee and a principal. There is a different market value for each. I use to hear this type of thing at NARI meetings all the time where contractors seemed to think a contractor's license came with an entitlement to a profit. Most of the talk was about their trade and they generally had nothing but contempt for such as sales and marketing, or even worse, financing. I should say that I understand that NARI is much stronger in other states, but none of the most successful remodelers I know in Calfornia are NARI members.

Whether ones business is contracting, architectural design, or installations, there is a trade or craft aspect and a business aspect and ultimately it is the business skills that will limit or enable success. I remember similar discussion on Remodeling Magazine's forum several years ago. A good carpenter may not be a very good general contractor. A good designer or draftsman may not be a good owner operator of a design business.

One of the most talented designer/draftsmen that I have ever met does plans for 25% of what I could charge if I was making his sales and appointments (This is a fact, because I did exactly that and used him to do most of the work) but he cannot get any more because he simply cannot manage his time and return phone calls. So he gets clients who will stick with him because I have never seen anyone who is more productive in front of a client and they will put up with his poor service because they know they cannot touch his price. He has everything he needs to be successful except business skills and judgment.

There is much to be learned working for someone if the boss is willing to train and the employee is willing to do the work to learn and be productive. Then, he can help another trainee just as he was helped. This is as it should be. Lew may be getting a very good deal and a fast track to being able to offer the kind of service the DC guy gets much faster than learning by trial and error.