Based on the situation my ex went through, to retain the clients and cleaners they would have to take a smaller cut from the hourly wage they charge the clients. I'm not sure if it applies in his case, it depends on what percentage he is taking.
Reading back on my previous post, it doesn't make much sense haha.
Edit: I'm mainly talking about my experience with absolute domestics. They took something ridiculous like $5 an hour which is why they had these issues.
That seems like it would just delay the inevitable, he needs to find competent cleaners that are unwilling to strike out on their own. If he manages to keep the cleaners as contractors, then his future will be absolutedomestics.com.au. They have done incredibly well for themselves and have set themselves up exactly as this guy has.
I'm thinking it must be more profitable making a decent profit while losing clients and cleaners, than taking a smaller profit and retaining clients and cleaners.
First of all, congratulations to him! Amazing success for 4 months work.
However, the issue with this is, there is no incentive for the cleaners to stay with the company. My ex was with a company very similar to this one, she signed up, but after she knew the clients for a while, she realised she could cut out the middleman and increase her wages substantially. The company tried to hit her with a 900$ bill for lost profit, their reasoning was "how can we stay in business if our workers keep running of with the clients?" (what does that say about the business model?). She convinced her favourite clients to ditch the company, which allowed her to bring in more money and the clients had a cheaper rate. Further clients were found by word of mouth at that point. I think throwing up some ads in the local paper would be cheaper in the long run than lost money from going with a company like this.
Edit: I'm mainly talking about my experience with absolute domestics. They took something ridiculous like $5 an hour which is why they had these issues.