Business By sdbrown Updated 23 Sep 2010 , 3:50am by BlakesCakes

sdbrown Posted 23 Sep 2010 , 1:31am
post #1 of 3

I am slowly starting my cake decorating business, getting orders mostly from friends, family and word of mouth. My brother got me an order for a small wedding cake for a friend of his and he wants me to pay him just for him getting me the business. At first I thought he was joking but he is not.

do you normally pay someone if they refer business to you?

2 replies
jason_kraft Posted 23 Sep 2010 , 2:10am
post #2 of 3

Unless you have a predetermined contract that includes a referral payment, then it's not necessary to pay people who refer you business. It can help though, especially when you are just starting out. Although it is pretty unusual for a family member to request a referral fee, if you want him to keep getting you business you may want to throw him some free cupcakes or something.

Good luck! And before you accept any amount of money for cakes, make sure you have legal kitchen space (at home if your state allows it, otherwise at a rental kitchen) and liability insurance.

BlakesCakes Posted 23 Sep 2010 , 3:50am
post #3 of 3

Anybody tell you lately that your brother's a bit of a jerk? icon_eek.gif

Like Jason said, unless you have a pre-determined arrangement to pay a "finder's fee"/commisssion to someone who finds business for you, you are under no obligation to give him anything.

Please don't let him "blackmail" you into anything.

Some "thank-you" cupcakes are a nice idea, but even those aren't necessary.

Only do something if you can afford the time, money, and ingredients, and if you think he'll understand that you may not be able to do it every time he finds you business. Make sure he also understands that at NO time will $$$ be part of any payment.


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