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Grab your popcorn for this one
are contingency agreements.

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Enforceable.

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I've been getting this question a lot.

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I've responded in the comments by the way.

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Thank you for dropping comments on
the videos, constructive comments like

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this lead to new videos, and it helps
enrich the community in each one of

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our lives, because I respect your time.

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You're spending valuable time and
resources being here with me today.

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And my mission is to help you leave in
a better position than you were with

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actionable strategies to use in the field.

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So you can do.

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Smash your income goal and give
every customer an amazing experience.

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Welcome or welcome back.

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My name is Adam Benjamin, and
today I'm gonna open the can of

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worms on contingency agreements.

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And if they're enforceable, I'd like
to hear your input on this as well.

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Listen, I learned regularly
every single training I run.

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I learned from people who are
there including brand new reps.

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I'm going to share my experience
in this video, my learnings, in

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my point of view, whether you
agree or disagree is totally fine.

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All I ask is that you be
cognizant and respectful of

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supporting the growth of others.

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And if not, that's okay too.

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You can keyboard command to a way, and
I'm sure people will be entertained.

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All right, now let's get to it.

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Our contingency agreements, enforceable.

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First part of this, it depends on who.

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You ask, what I'd like to do first
is lay the foundation of what a

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contingency agreement is and why it is
used before we get caught in the weeds.

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Excuse me, about the legal side.

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So what is the contingency agreement?

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Contingency agreement is essentially
a glorified handshake that says we're

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going to get your roof approved or help
you get it approved by the insurance.

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And if it is, we get to do the work cool.

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That's the contingency agreement.

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Now in a playlist, I've done,
which I'm going to make really

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easy for you to get off.

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If you click on the link in the
description for the pitch, like a pro

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roofing sales training video library, or
you can go to the roof, strategist.com.

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It'll bring you right to this page in
here in my pitch, like a pro roofing

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sales training video library, I've done
an entire playlist, which you can click

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and binge through on the contingency
agreement and its use as a closing.

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Now I highly recommend you check that out.

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And again, it's available for
free@theruthstrategist.com or

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you can click the link in the
video or podcast description.

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The reason I bring that up is it's
my belief that the contingency

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agreement is first a closing tool.

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Okay.

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Now what do I mean by that?

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It is a way to lock in the deal, have
that handshake say, we're going to do this

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work for you, and we're going to be the
contractor of choice to actually do the.

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Next it is again,
contingent upon approval.

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Meaning if the insurance company says no.

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We're not replacing it.

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They don't owe you anything.

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So it removes a risk.

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Okay.

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So contingent upon approval.

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And I've done another video a couple of
weeks back on risk reversal by removing

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people's fear of signing the thing.

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And when used as.

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Closing tool in, um, contingent upon
approval to, to use risk reversal.

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We end up earning more business.

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So what it is not quite yet is a contract.

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Okay.

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It is not yet a contract by law.

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And again, this is where, uh, if
you're every state law is different.

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Okay.

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And if you disagree with this
or your legal counsel has been

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different, drop a comment.

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But my understanding is it's not
a contract until money changes.

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Now you go through and do this work.

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Yeah.

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It's not billable.

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All right.

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So if they cancel on you, it's not a
contract yet until money changes hands.

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So here's where it gets interesting.

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Most people on their contingency
agreement have a 10 to 20% cancellation,

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meaning let's say we get the insurance
company approved for $10,000 roof.

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We have a 20% cancellation.

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If you decided to work with
someone else, it's on the fine

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print on the back or on the front.

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And if you back out, you owe us 2000.

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Okay.

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Now let's loop back to the,
is it enforceable number

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one, depends who you ask.

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Now let's get into the weeds.

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In my opinion, the number one reason
to have a contingency agreement

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is to act as a closing tool.

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Our particular attorney
wanted it to be 900.

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Federal myself, homeowners season nine
pages are going to think they're signing

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their entire life away in their firstborn.

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We're never going to
get deal sign on this.

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So we made a decision as a company
to say, I'm more interested in this

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acting as a closing tool to help
us secure deals in lock in deals on

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good faith, because we will earn the
business than I am of having it be.

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Bulletproof.

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So we elected for a single
one page contingency.

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That was double-sided
the terms for, for them.

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And then all the fine print on the back.

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What this allowed us to do was increase
the volume of people who were excited

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to sign it because of how we positioned
it, which by the way I teach in that

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free video library, the pitch like a
pro roofing sales stream, video library.

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And if you want to learn like my
whole in-home sales system, I do that.

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My program called the roofing
sales success formula, which is

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an all-in-one sales training,
sales strategy and sales system.

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That's being used by thousands as we
speak from the smallest companies that

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started yesterday to some of the top
hundred roofing companies in America.

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And it plans for individual
reps or for owners with a team.

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And in my closing strategy, which I
cover for storm and retail, I discuss

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how to position the contingency
agreement as the closing tool.

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And I teach the entire process now.

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There is a sample contingency
agreement included in my program.

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Uh, but I just want to be crystal clear.

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It is a sample cause every
state law is different.

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Some company or some states say,
you know, your cancellation clause

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has to be in this type font.

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This typeface this size on the
first page with this number of days,

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the next one has it differently.

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So you just got to make sure that you're
compliant with your local laws now.

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So let's get back to it.

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Number one, main mission
act as a closing tool.

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Number two.

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Question is it enforceable?

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I saw a comment on one of the
videos and someone said, Hey,

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it is according to my attorney.

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And the reality is it
depends on your contingency.

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If you have everything listed
out, could it be enforceable?

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The answer is, yes.

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My next question to you is
this, is it worth going in?

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Do you know what an attorney
is going to cost you?

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If you have a cancellation and
you're going to collect 20%,

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here's what most people do.

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Most of the people that I work with
will send an invoice for this 20%.

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Okay.

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The last company I trained, it's
funny, we actually talked about this.

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They send invoice.

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I had done this.

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I did in fact, collect this on a
commercial project I did when the property

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owner decided last minute, not to do
the work because he needed the money

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and we collected that 20% cancellation.

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There are times if you see shaky feet
with people, you can communicate this.

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Okay.

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Now what happens?

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You send the invoice.

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Some people will pay it.

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It is true.

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They will.

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And there are other people that won't
now let's say at 20%, uh, if you have

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a, a $15,000 roof, you're going to
collect 30 grand or excuse me, $3,000.

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Someone double check my math and
horrible at it, but you can drop a

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link in or drop a comment in my maths.

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So you can collect three grand.

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By the time you invest all of your
time, energy, resources, and effort to

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collect your job file, submit it to the
attorney, pay your attorney's fees, have

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them chase the homeowner in for all of
your emotional energy to go into it.

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My guests, if you are lucky, you may
get paid and you might make $1,500.

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Versus reallocating all those time and
resources to just go find a customer

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you actually want to serve and let
bygones be bygones, because let me

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tell you this principle is expensive.

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And the other threat that you have
is that by pursuing the legality

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side of the contract means your
contract must be buttoned up.

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I ended up in an, in an arbitration
with a customer and his attorney, even

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though this was not the cause they
thought that we damaged the gutters,

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which we didn't I had before pictures.

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He signed off.

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It's a story for another day.

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The attorney thought we doctored
the pictures we literally had before

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pictures and after pictures and
the gutters were damaged in both.

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He'd signed off on them.

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They were timestamped his attorney,
this absolute, I'm going to say it.

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Total slime ball attorney literally says
to me, those pictures were doctored.

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So what do I do?

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I started laughing and then
I realized he was serious.

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And then Mr.

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Slimeball attorney starts diverting
all this attention about the gutter

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damage to the terms of our contract and
pokes holes in all of these different.

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Now, the funny thing is this was an $800
discrepancy that I ended up solving by

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kicking both attorneys out of the room
and having a man to man with the gentleman

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sitting across the table from me.

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And we got it solved right there.

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Did I get what was due and right.

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No, but principle is expensive and
he was willing to drag his feet

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with his little contingency lawyer.

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Poking holes at all this, for hopes of
some massive thing to just say, we'll

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eat the 800 bucks to be done because he
was ready to take this thing to court.

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Principle is expensive.

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So I want to wrap this up
with an action plan for you.

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I'm going to give you my perfect.

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Uh, feedback and you can
run with this or not.

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In my opinion, number one, contingency
agreements should be positioned

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as a closing tool and it should
be advantageous for the homeowner

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because you will sign more deals.

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I'd rather sign 20% more deals
because the contingency agreement is

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positioned and communicated the right.

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And lose a couple rather than making
it bulletproofs and no one can back

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out and screw me over and I'm just
going to be a grump ball and I'm going

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to make sure they're Bulletproof.

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And what will happen is you're going
to sign less deals because homeowners

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are going to look through that.

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It'd be scared.

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So I would rather deal with that.

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The next.

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First course of action is to send
the invoice in compliance with

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the cancellation details of your
contingency agreement in some people,

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by the way, do teach that you can
review this with the homeowner.

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So they're aware of that.

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Penalty.

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So you do lock that deal
in, send the invoice.

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Many people will pay it some won't.

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You can always of course follow up with
a phone call and then it is up to you.

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Should you choose to go the legal route?

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I'll tell you mine, unless it was
an absolute monster project, a

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commercial project, unless we had
exorbitant amount of time, energy and

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resources getting something approved.

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That is the only time.

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And there were a couple of
them that we did that for, but

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it's a very selective position.

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Otherwise to me.

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Friends out there and to owners.

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Remember sign more deals.

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Principle is expensive.

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Send that invoice, move on and go sign
a customer that you are meant to serve.

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Hey, thanks for joining
me in today's video.

00:10:37.425 --> 00:10:40.425
If you haven't yet done it, I'd love
for you to join me, to learn more

00:10:40.425 --> 00:10:43.425
about this contingency agreement,
how to position it as a closing tool.

00:10:43.814 --> 00:10:46.395
And you can do that for free
and my pitch like a pro roofing

00:10:46.395 --> 00:10:47.535
sales training video library.

00:10:47.834 --> 00:10:48.765
And if you want.

00:10:49.410 --> 00:10:53.460
I'd love to chat with you, or you can
chat with my team about our all-in-one

00:10:53.460 --> 00:10:56.820
sales training, sales strategy and
sales system to learn the entire system

00:10:57.120 --> 00:10:59.100
to rock it out with your homeowners.

00:10:59.160 --> 00:11:01.380
All right, there's a link
in the description below.

00:11:01.530 --> 00:11:07.140
You can always give us a call at
(303) 222-7133 color text, and I

00:11:07.140 --> 00:11:08.610
will see you on the next video.