Trade partner program

Turn the trades you already work with into an asset.

Tally is a referral program plus a two-way work ledger. The plumbers and HVAC shops in your market send you jobs and get paid for it. When they need you — or you need them — the work goes on a running tally instead of a check.

Figure APartner position
Capital Plumbing & Mechanical CPM–014
They owe
$11,450
You owe
$6,300
Net
$5,150
Water heater failure, basement13 Aug · mitigation
+5,850
Re-pipe after demo, job 284109 Aug · plumbing
−3,800
Slab leak, kitchen & hall25 Aug · drying, day 3 of 4
+6,400
$021% of line$25,000

Neither side keeps the only copy. Both read the same account.

Three things it does, and it does them at the same time.

More work, from people already standing in it

A plumber is inside the house when the pipe bursts. He can hand that job to anyone. You pay him to hand it to you — every time, tracked, and settled without an argument about who sent what.

A partner who can’t afford to leave

When his guy floods a house, you absorb it on the tally instead of sending an invoice. Nobody else in your market is offering that, which is why his next twenty jobs come to you instead of to whoever knocked last.

Nothing out of pocket, ever

Referral fees are paid out of the invoice they generated, never before it bills. The ledger moves no money at all. It is the rare growth program that never competes with payroll for the same dollar.

The reframe

Right now those relationships are a favour. They should be a balance.

Every restoration company already has trade partners. Almost none of them own the relationship — they rent it, one referral at a time, and it leaves when the rep does.

Your trade relationships today
On Tally
TodayYou pay a fee and hope he remembers you. No record he can see. The next contractor to buy him lunch is even with you again.
On TallyEvery referral is logged, paid and visible to both of you. He watches the number go up. So do you.
TodayHis guy floods a house and he calls whoever is cheapest. You are one of three numbers on a list, competing on price at his worst moment.
On TallyHe calls you, because you are the only one who will take it on account. No check, no claim, no premium increase for three years.
TodayYou buy his plumbing at retail. Cash out the door, at the top of his rate card.
On TallyYou buy it at his cost, with mitigation he bought at yours. Both sides invoice at retail. Both settle at cost. That gap is the engine.
TodayThe relationship lives in one rep’s head. When he leaves, it leaves with him, and you start over.
On TallyThe relationship lives in an account you own. Portable, auditable, and still there next quarter.
TodayIt is a marketing cost. Spend now, hope later, argue about attribution at the end of the year.
On TallyIt is an asset with a balance on it. Every dollar it spends arrives after the dollar it earned.

What it is

Two pieces. That is the whole product.

Either one works alone. Together they make a trade partner structurally unable to justify sending work anywhere else.

01 — The Referral

He finds a loss that isn’t his fault.

A plumber walks into a burst supply line on a call that has nothing to do with him. You pay him to hand it to you — the technician who found it, and the person who runs the shop.

The only half that moves cash, and it is paid out of the invoice it created.

  • Technician$250
  • Owner / GM$250, or $500 to the line
  • Paid fromThe invoice it created

02 — The Trade Line

He causes a loss that is his fault.

You do the mitigation, bill your retail rate, and take no cash. It sits on an open line between the two of you. He settles later in cash, in his own plumbing labour, or any mix he chooses.

This is the half nobody else offers, and the reason the relationship sticks.

  • DirectionBoth ways
  • SettlementCash or work — his call
  • Cash requiredNone, either side

Conceptually

How it actually runs.

Work moves

He sends you a job, or one of you does work for the other. Nothing changes about how either company operates — the trucks roll the same way they did last week.

It posts to the tally

Both sides invoice at their normal retail rate, and the amount goes on the account instead of into an envelope. Referral fees post the same way.

One statement, once a month

Both columns, the net position, and the jobs still in flight. He settles in cash, in work, or leaves it running. Most partners never write a check at all.

Open by protocol

It reads the software you already run. It does not replace it.

Tally ships an MCP server and a REST API, so the ledger is reachable by your job-management, estimating and accounting systems — and by whatever AI assistant your office uses. Jobs and invoices flow in; statements and balances flow out.

The design rule

Your ledger is not locked inside our app.

The record belongs to both parties, not to a platform. If you leave, you leave with your account history in a format you can read. That is the one property that makes a trade partner willing to keep score with you at all.

What it connects to

Whatever runs your jobs today.

No rip-and-replace, and no second system of record for your production team to maintain.

Job managementEstimating AccountingField docs MCPREST

Watch it run

One relationship, start to finish.

Five moments over about eight weeks. Tap through them and watch the account change — it is the only thing either side ever has to look at.

Cash that changed hands across all five steps: none. He never wrote you a check. You never wrote him one.

Figure BWeek 1
Capital Plumbing & Mechanical CPM–014
They owe
$0
You owe
$0
Net
$0
$0Nothing on the line$25,000

Nothing on the line yet. A partner at zero is a partner in perfect standing.

The instrument

One statement, sent the same day every month.

This is what the program actually is to a partner. Everything else is how it got here.

Tally Statement
Capital Plumbing & Mechanical LLC
Account CPM-014 · Period 01–31 Aug
Line $25,000 · Alert at $17,500
Settle in cash or work, your call
Net position — you owe us
$5,150
Projected, once open jobs post
$7,350
Line used
21%
29% projected · alert at 70%
You owe us — mitigation completed$11,450
DateJobRetail
Supply line, 2nd floor04 Aug4,200
Water heater failure, finished basement13 Aug5,850
Drain stack, powder room27 Aug1,400
We owe you — plumbing completed & credits$6,300
DateJobRetail
Re-pipe after demo — job 284109 Aug3,800
Fixture set, 4 units — job 286621 Aug2,000
Referral credit — owner election, job 290329 Aug500
Open jobs — in flight, not yet postednet +$2,200
OpenedJobStageEst.
Slab leak, kitchen & hall25 AugDrying · day 3 of 4+6,400
Rough-in, job 2871 — committed22 AugScheduled 04 Sep−4,200

The open-jobs block is the one most programs miss. A partner at $5,150 with jobs in flight is really at $7,350. Send it the same day every month whether there was activity or not — the rhythm is the trust.

What it costs

One subscription per restoration company.

Your trade partners are never charged. They get the statement, the balance and the settlement options for free — charging the smaller side would kill adoption at the exact relationship the program exists to build.

1Trade partners 8
2Average job, retail $4,000
3Your gross margin 70%

Mitigation gross margin runs 70–80% industry-wide.

4Extra jobs a month 2
Your monthly cost
Base subscription$300
First three partnersIncluded
5 partners past three$150
Trade partner accountsFree
Total
per month
$450 / mo
Gross profit added at these settings: $5,600 / month — 12.4× the subscription.
Break-even at 0.16 extra jobs a month.

This models the referral half only. It counts no value for the trade line — the plumbing you buy at your partner’s cost instead of retail, and the partner who stops taking your competitor’s calls.

Go deeper

Everything else, when you want it.

You have the whole idea already. What follows is how it is actually run — open only what you need.

The money

One $4,000 trade, run all the way through Where the margin comes from, on both sides

The line worth staring at is the second from the bottom.

LineYou Your partnerWhat it means
Mitigation billed at retail+4,000 −4,000Your normal invoice, posted to the tally instead of collected.
Your direct cost to deliver−1,800 Equipment-days and labour. Illustrative — use your own.
Plumbing billed back at retail−4,000 +4,000His normal rate, on your job. Clears the line.
His direct cost to deliver −1,800His number, not yours.
Cash that changed hands0 0The point.
Value received for cost incurred4,000 for 1,800 4,000 for 1,800Each side buys at cost and is paid at retail.

Illustrative figures. Direct costs are placeholders — replace them with your actuals before you price a line.

Sizing a trade line A ceiling on what he can owe, never a balance he must carry

Be exact about what this number is, because partners assume the opposite. It is the most a partner is allowed to owe you before the rules change — a limit on his borrowing, not a minimum he must maintain. A partner sitting at zero is in perfect standing, and he can clear to zero any day he likes.

Set each line at one month of that partner’s expected mitigation volume, and never open one smaller than three typical jobs. With jobs at $4,000–$8,000 the smallest line worth opening is around $20,000; the largest partners top out near $50,000.

A line that is too small breaks the promise on first use. A $10,000 line puts a partner at half to four-fifths of it on a single incident — so the first oops he ever brings you triggers a credit conversation, at exactly the moment the program was supposed to prove it had his back.

  • At 70% — he is told, in the ordinary monthly call, that further tally work starts requiring partial cash. No surprise: the statement has shown him the gauge every month since he signed.
  • At 100% — new tally work pauses until the balance is worked or paid down. Written into the agreement, so enforcing it is administration rather than confrontation.

Running it

Who gets which offer Two pathways, split on one question: is there a GM?

Not headcount — structure. A shop with a general manager has someone whose job is to feel the cost of mistakes across a fleet and who can sign a credit line. A shop without one has an owner in a truck who wants cash in his hand. You can tell which in one question.

Pathway A · referral only

Owner-operator, no GM

No back office and nobody to administer a ledger. Cash-equivalent, immediate, zero paperwork.

  • Referral fee$500 / closed job
  • Trade lineNone
  • TouchDialer + mailed card

Pathway B · referral + trade line

Has a general manager

Someone carries the cost of mistakes across a fleet and protects an insurance loss run. Lead with the line; let the fee close it.

  • Referral fee$500 / closed job
  • Trade lineBoth ways, at retail
  • TouchNamed rep, monthly

The technician is paid identically either way. A plumber’s $250 does not depend on how his employer is structured, and a program where it did would be indefensible the first time two techs compared notes.

Covering a market Fifteen shops, not a thousand plumbers

A rep manages about one drop-off a day, because plumbers are only reachable in a narrow morning window — thirty a month. Against a market of a thousand-plus plumbers that is years to touch each one once, and no route map fixes it.

So count shops, not plumbers. Sort your market list, take the top fifteen with a general manager, and that is one rep’s entire territory. Everything else is a dialer and a mailed card for a few dollars a day. One rep owns fifteen accounts by name. Automation owns the rest.

What you say at 6:40am The field script, forty seconds, their risk first
  1. Open on their risk, not your service

    “You’re going to have a guy put a wrench through a pipe this year. When it happens you’ve got two bad options: eat it out of pocket, or file a claim and watch your premium sit high for three years.”
  2. The third option

    “Here’s a third one. You call us, we’re on site same day, we dry it, we bill you our normal rate — and you don’t write a check unless you want to. It goes on a tally. When we need a plumber on one of our jobs, you send a truck, bill us your normal rate, it comes off the tally. Pay it in cash any time you like, or never.”
  3. Then, and only then, the money

    “And separately — any time one of your guys walks into a flooded house that isn’t your fault, he calls us, he gets $250 and you get $250. Every job, every time.”
  4. Close small

    “That’s the whole thing. Two pieces. Want me to leave the one-pager?”

Never pitch technicians before you have pitched the owner. Top-down, in writing, or not at all.

The rules

Five lines that don’t move Insurance proceeds, another company’s employees, non-cash consideration

These constraints are not fine print — they are part of the design, and they are why the program survives contact with a carrier, an auditor, or a state regulator.

  • The tally is always bilateral — you and one partner. Partners settle with you, never with each other. Two partners trading through your ledger makes you a barter exchange under IRS rules, with Form 1099-B reporting on every transaction. Two-party direct barter carries none.
  • Tally work and insurance work never mix on one job. Tally work is work the partner is choosing to keep out of insurance. If a job goes to a carrier it is a normal invoice on normal terms — never part-tally, part-claim.
  • Referral fees go to the trade business and its people — never to the insured. Pay the plumbing company and its technicians. Never a homeowner, never a deductible offset, never anyone insurance-licensed or acting as a public adjuster. Several states restrict referral compensation outright where property-insurance proceeds are payable, so the referral half is switched on state by state.
  • Traded work is taxable income at fair market value, both directions. Barter is taxed exactly like cash. Both sides book full retail value received as income; the tally nets the settlement, never the revenue. Unincorporated partners over $600 still need a 1099-NEC.
  • The program is disclosed to ownership in writing, always. The owner signs and knows exactly what his technicians receive. Undisclosed payments to another company’s employees are commercial bribery in most states; disclosure makes the owner an advocate instead.

At scale

For networks, franchise systems and best-practice groups The same program, one economy of scale up

A network’s members are restoration companies, so this is the same offer read from one level up. Most vendor partnerships ask a group to lend its credibility to something the member funds out of hope. This one is funded out of the invoice it creates, which is why a member can start it in a month where cash is tight.

What the group gets

Members report referred jobs and traded labour as a line item. First-to-market positioning in a region or vertical, and a structure that recognises the origin relationship as the program spreads.

What the member gets

Agreement templates, credit-line sizing, segmentation logic, the field script and the monthly cadence — plus the ledger that runs it. The playbook is the product as much as the app is.

What it asks of you

A named champion, a webinar or meeting slot, and a place in the comms calendar. We build, operate, support and train. Distribution is the only thing we cannot do from our side.

On “we already do this internally.” The shops that say it are doing it on a spreadsheet one side controls, reconciled by a rep with a printed report once a month, with no open-jobs position and no record the partner can verify. That is not the same program — it is the reason the relationship quietly decays the first time the two sides remember a number differently.

Next

Start with three partners.

The fastest way to know whether this fits is a thirty-minute conversation about your market, your three biggest trade relationships, and what they are worth to you today.