Referral Fee from Wedding Facility

[abster]

Hello All,
I recently met with a newly opened wedding facility. The administrator is asking a 10% referral fee for any wedding booked there. What are yout thoughts on this?

[Concisus Cognatus]

Evil necessary business expense.

[*Mike*]

How about a few more details... Is it 10% for any referral that they send you? Or 10% anytime you shoot there? How do they determine when you owe the 10%? Are they just handing out a list of photogs and assuming anyone that books one of them is b/c of their referral?

I've had one venue come to us and ask if we'd do something with them... They push our photography, get the client to commit and pay a retainer when booking the venue (our contract w/ the client is signed separately), and they get 5%. If the same client passes when booking the venue, but later does a consult with us and books we owe nothing. For us, it's win/win.

Personally, I'd be leery of what it looks like you're saying... If they're genuinely responsible for sending you work, then I'm okay with a commission on the sale. If it's a money grab where they're just looking to capitalize on vendors serving their bookings I'd be upset.

If they're just starting out, they don't have all that much leverage. I'd see what you could work out...

[ndsimm]

I agree with Mike on this one...how about a few more details? I have some Wedding Planners that I give a "finders fee" to that refer clients to me but I also have some reception locations that I have done two or three weddings at so they refer me at no charge

[JimsPS]

I agree with the others, you need to clarify the details. However, paying a referral or retainer fee to any vendor, business or Church who gets you a job is not unusual. If you are just getting started, it can help increase your business and clientel. If you are already doing so well that you don't need the business, then you might think twice about it.

As for me, I would gladly pay the 10% but ONLY - If the client confirmed the referral and only after I had collected in full from the client and their check(s) had cleared the bank.

Also (I don't do this personally) but if paying the 10% bothers you, consider adding 10% on to your price. Just like every other business in the USA, convey the cost of doing business on to your customer. Just don't make an issue of it or tell them you are doing it. Most people won't even notice or care. Hope this helps - Jim

[JimsPS]

Sorry about the double post - don't know how it happened

[AndrewCCM]

Personally.. No kickbacks is my policy. If they need a bribe to book me then I am not their vendor. Giving someone the name of a reputible photographer isn't rocket science nor does it cost them anything. It actually gives their clients better value which is what they should strive for in the first place.

That's not to say I wouldn't send a Christmas card or gift, etc...

[abster]

Thank you all for your feedback on this.
Here are the details:

10% for any booked event there that they refer to me.
The 10% is based on what the client spends with me, basically their package price. The facility wants me to put together a special package for their facility that costs less and offers less than my basic package in exchange for being the main photographer they refer to. The person I spoke to contends that the brides he deals with are not willing to pay more than my basic package price and thus there was the need for a special package. On this point, I reasoned with the facility admin that this is a matter of education with the client and not the responsibility of the facility manager to sell the photography but offer the referral.

There is not a list of photographers they hand out or even sample albums to look at. They are that new in the industry.

The client would confirm the referral and only after I had collected in full from the client and their check(s) had cleared the bank would I pay them.

I would add the 10% fee to the package price.

I am new to this area and thus I am starting over with establishing business. I have not dealt with referral fees before and am wondering if this is really a good move for me.

[AndrewCCM]

Do they give you 10% of their fee if you refer someone to them?

I get asked all the time for referrals on where to have receptions/weddings, etc...

Just curious.

[abster]

Andrew,
I did bring up this point, rather gently.

[CobyPhoto]

Originally Posted by AndrewCCM

Do they give you 10% of their fee if you refer someone to them?

I get asked all the time for referrals on where to have receptions/weddings, etc...

Just curious.

I am with Andrew on this...Do they give YOU a 10% cut of the booking if you refer them to that location...AND a special "package price?"

I would politely turn them down. If I had to drop my prices to be in their range, I wouldn't worry about it.

CJ

[laawaaris]

i pay 15% to one wedding facility as a finder's fee

however, i told the facility i have to build that into my package so i am actually making the same amount of money - the venue just makes its 15% directly from the client

[Aric C. Hoek]

Is it the only location in town?

I don't strive to be on a preferred vendors list if they ask for a referral fee.

Do you ever refer a florist, D.J. or a videographer? Do they pay you for the referral?

I refuse to pay referral fees as well. I have had a vendor ask for that type of setup and I offered them this. They could include me in their package (just like the cake, etc.) but I had to make XXX amount of money for the job. If they wanted to charge more than that and pocket the difference then good for them. If not, oh well. I also told them that if they were asking for a referral fee, then I would have to charge them for each image shot that their facility that they wanted to use for advertising purposes. If I did not pay a referral fee, then I was glad to share the images for advertising purposes (with my logo on them of course).

Guess what, they chose the option of getting free advertising images. The 10% was not an issue.

[Jessica Merritt]

This just does not sound like a situation that is advantageous for you. They want you to drop your prices, and give them money? I don't think so.

When we were first starting out, my husband and I were contracted by an event planner for the crappiest 16th birthday party ever. It was a terrible experience. They asked us to go cheaper, and we did, and this f*cker was slave driving us all the way, as if we worked for him, not the client directly. My point is, I'd be hesitant to get hired through someone else, especially one who gets paid for booking you-they might start to get the illusion that you work for them, and that's just awkward.

Tell them that your prices are fair but firm, and that if they'd like to share your name with clients, cool, but they aren't doing you any favors. As was mentioned by another poster, having good vendors to refer to makes their business more valuable, so you're actually helping them, not the other way around. If they don't like it, it's really not a problem for you-this wasn't a good arrangement to begin with.