Teaming with other vendors

[JStrattonPhotography]

A good friend of mine does Passion Parties (adult TOY parties). I have been considering a proposal that could benefit both of us. The idea is to see if she can take my business cards and maybe a portfolio book with her on her parties and in return, any boudoir sessions that are booked through the parties, she gets a cut of the profits. Anyone done anything like this before? I need to look up the tax ramifications of this before I do anything but thought it could be a lucrative idea.

[BWangPhoto]

What "tax ramifications" would there be? You book the work, it is your income and responsibility on sales tax and then you pay a commission out, (expense) to the individual that you have the deal with.

We do it all the time with schools, organizations etc. that bring business to out studio.

[JStrattonPhotography]

I get that the commissions are an expense but didn't know if there were any other issues regarding additional taxes or whether I would need to give her a 1099 at year end. Also, I want to see what her tax rate would be on the additional income.

[toverman]

I'd keep the money separate and plan to conduct events together ... the excitement of the products and photography together could be appealing to some. If her parties are in clients' homes, shoot a session for the host in advance to generate more interest at the party. Your friend should and likely will be focused on her sales; with you there, you can be the selling point for your work and offer it on-site during the party. Those who are moms have little time for things like that, so combining the party with photography seems more worthwhile to me.

[HotHolly]

It does create tax issues you wouldnt have to deal with if they were separate. Consider merging parties and doing a mini shoot for ea woman there. Either way, to sell your stuff, it helps if you are AT the party. People are gonna have questions only you can answer. I get lots and lots of questions...despite my huge website. Its usually about calming nerves and getting to know you better.

[toverman]

^ I'd think being there is key. With a fun, inviting environment at a party there could be people who want the photography who would never get the courage to book a session with you separately. Having an advance session with the host will show off your work and help calm some of the nerves. Spur them on with a slight discount off the session fee or with a bonus *something* they can't normally get.

[BWangPhoto]

Originally Posted by JStrattonPhotography

I get that the commissions are an expense but didn't know if there were any other issues regarding additional taxes or whether I would need to give her a 1099 at year end. Also, I want to see what her tax rate would be on the additional income.

Oh sorry. As we do this already, I didn't even think of that as an issue. We 1009 all Vendors (Non-Employee Compensation) that we pay out commissions to.

All of the major corporations we do work for do the same for us every year, no matter the amount. A couple have 1099'ed us for 163.00...waste of paperwork if you ask me, as it is already on the books at the studio as income.