Rules for Hiring & Paying Bird Dogs

[Edward Stephens]

Dear BP Family,

  I'm in the process of hiring someone to work maybe a few hours a week to generate leads.  They'll be looking through court records and also driving for dollars.  I have a few questions about hiring and compensating this "bird dog".  Help me out.

(1) The current compensation package I have is a base pay of $40/wk and $1 per lead.  Assuming he spends 5 hours a week and retrieves 10 leads for me, that's $50/5 hours= $10/hr before his expenses and taxes.  How does this compensation compare to other bird dog gigs in the Midwest (or specifically Kansas City)?  Is there a better way to structure the deal?

(2) Are there any tips on making sure he remains a 1099 employee and not a W2 employee?  I don't want to withhold taxes or anything else from his paycheck.  I also don't want to cover him on my insurance, should he get in a wreck while he's on the job.  Should he have specific insurance for this?

(3) Is there a basic employment agreement form that is standard to use for bird dogs? 

(4)  Does my bird dog need a real estate license since it may be argued that he is being compensated for gathering real estate leads for a fee?  I live and work in Kansas.

Thanks in advance!