So I was recently contacted by a wedding coordinator who asked about whether or not I'd like to be part of her referral team. The deal would be that she'd refer her clients to me, and if they placed an order, then she gets a percentage of what I charge. Does anyone else do this? She didn't say how much she wants, so does anyone know what would be an appropriate amount to offer? Does this sound like a good idea?!
Thx!!
*liz

Anyone?!

I guess it depends on how badly you want your name out there. If this will be a tremendous help to your business, it may be worth it. I don't do cakes proffesionaly, so I would have a hard time giving some of my hard earned cake money to someone else. However if it will benefit you in the end, it may be worth it. These brides may come back for birthdays, anniversaries, etc. and you won't have to pay out anyone on those, plus it's building up your clientele. HTH.

I don't know how I feel about that one. I have been approached like that as well but no one has suggested that they get a cut from my profits. Most of the time it's a "I'll refer to you if you refer to me" kind of thing. Sounds like she's just trying to earn money on your talent - after all...will you be getting a cut of her Wedding Planning Profit??

I could be wrong of course - I just know that it's not done that way around where I am...Maybe someone can shed a different light on this...

Thanks, Iheartcake! Yea, thats what I was thinking - It would be a really good opportunity for clients that I may not have otherwise gotten, however I'm not quite sure what would be appropriate for the wedding coordinator to "charge" for her referral for it to still be worth it to me... Should it be a flat fee? (I dunno... $50 per referral? Is that not enough? Too much?!) Or a percentage of what the cake costs? I just dont know!! Does anyone do this!?

Thanks!!

Hmm... Yes, thats a good point, tbroskoski... I really doubt I'd be getting a cut on her wedding planning at all... haha!! There are a few other vendors that I know (photography) that we've done the "you refer me, I'll refer you" kind of deal. There isn't any $$ involved, just referrals. I just dont know about this!!!

tell her great!

we'll need to work out a deal..say 10%? so if i refer a client to you ill get the same 10% and see what she says hahahahahahaah

seriously...ive been approached by wedding planners and they haven't asked for a cut for themselves...one asked for a small discount for the bride..but not a cut for themselves.

just being new to the cake world 50 dollars is a lot for just a referral. Think about it she already making money for planning dont let her take to big of a chunk from your profit. count it up after supplies, shipping. what is your fee.

I don't think it sounds all that unfair unless you are someone that is already so established that you don't need help finding wedding business. Down the road when I've built my skills up a bit more, I am hoping to work with my step father in this capacity. He is a VERY consistently booked DJ specializing in wedding celebrations. He has spent years building his rep and honing his craft. He is working to have a network of folks from photographer (mom) to videographer to limo...you get the point. If he'd done the work to get the bride and then is sending them to me...they, in turn, are likely to trust me a little bit (at least) because the trust him...I think he deserves at least a SMALL cut. Make sense...or did I lose you?

Sorry I can't really help either. I have only done a couple of wedding cakes and they have been for family.

I just had a thought. What kind of reputation does this wedding planner have? You may want to check. It would not be good if they have a really bad rep and people find out you are associated with him/her. Hopefully that is not the case, but it is worth considering.

Good luck!

I would pass on this. Unless she can gaurantee you business, you are better off taking the money she would get and advertising on your own.

Advertising will reach more people than her bride list. In addition - just because she referrs them - doesn't mean they will book with you. Keep that in mind.

I say JMHO invest in advertising with a bridal magazine, newspaper or online bridal service.

I agree that most wedding vendors do the "you refer me and I'll refer you" thing. She wins by referring her clients to good quality cake makers .... her reputation for putting together a great wedding just grows.

I have a referral credit system where I give 5% to whoever refers the business to me. It's usually in "credit" (to apply to a future order). (Alice sends Betty to me .... Betty spends $3000 .... ALice earns $150 credit to apply to her own order).

I would be cautious on working with someone who expects payment for referring business (even tho' she doesn't get a referral fee if they don't book with you). She is getting paid by the couple.

I Have seen on other posts where people do a money off the next cake you order from me type of thing that can then be added up and put towards a cake. The thing is if you are really busy and don't need the cakes she will be sending you then it is no use no matter how little or big her "fee" is. But if you would like to do more cakes then I would think it would be a good way to start getting some. You will definitely want some type of contract with her with a time limit set.

If you are looking to build your business I think it is a great idea! You only pay her if you book the cake, its just the cost of advertising. Also its guranteed advertising since you pay per booking.

If you do this I would suggest a percentage of the total cake sale as her commision instead of a flat fee (a $50 fee on a $1500 order would be a good deal.... $50 on a 200 order, not so much...). Also, wedding planners influence how brides spend their dollars, hence the potential for larger orders, plus her earning a "commision" from you will encorage her to send more business your way.

Maybe instead of you giving her a percentage of your profits, why don't you offer her a discount on orders that she places personally? Like maybe 10% off for each referral she sends you or $5 off for every referral.

I think that would be better for you because it seems like she is the only one getting a good deal from it because she is getting paid both ways (from you and her customer). If you offer her the discount then you will have the referrals and then her personal orders. It will be a WIN-WIN partnership!

Veronica

The nice thing about setting it up like the way indydebi said is that you can apply this to past brides too! Afterall they most likely know others who are getting married and this will give them a reason to "sell" their friends on you too! I was on a site recently (somebody ? from here-- sorry!) And she actualy lists how much credit towards a cake people have! Almost like a frequent buyer program!

For wedding planners that are established, I do pay a percentage ( standard in the industry is 15%) but, most of the wedding planners I have met are just brides who had so much fun planning their own wedding, they think they can do it for a living. Them I will give a referral fee ( usually$25- $50). I have a catering manager, and we pay her a percentage of all of the business she books. To me, it is the same. I like having other people do my sales work for me. Take into account though, I have some of the highest prices in my area, and all monies paid are based on a minimum purchase. ( My wedding cake minimum is $400)

I get referrals from a local mom & pop restaurant/bakery. They have several of my display cakes in their restaurant, and I pay them 15% for every cake I book through them.

I've been doing some wedding research (my cousin's gettting married, YAY!).... I personally wouldn't book a vendor a wedding planner recommended if the planner was getting a "kick back" or "referral fee." As a [future hypothetical] bride, the planner should be working for me, looking out for my best interests (especially if she's taking 10% cut for herself, or if I'm paying the several thousand dollars for her services)--not looking for a little extra money by having me book with a vendor since she'll get more money from another source. IMO, and that of many brides on theknot.com/the former WeddingChannel.com, a vendor should be recommended solely because of prior work --no money should trade hands between vendors. And many of the brides on there wouldn't book a vendor if there is a financial incentive for their vendor. Sorry if this offends anyone, I just am not a fan of this practice.

Starbucks- So your saying you would/have asked if they are receiving anything for their referral? Just curious!

ay-yi-yi!!!
So many good points! I guess I'll get in touch with her and ask her exactly how SHE is expecting this to work. If she wants something retarded like 25%, or is expecting a cut per REFERRAL instead of BOOKING, then obviously there is a problem... On the other hand, 10% or so isn't all THAT much money, and if its done per booking, then that would maybe be alright.... right?!
I did a small wedding show a few months ago, and so far I've had a couple referrals from some of the other vendors there. But it was just sort of understood that we were looking out for each other!
*ack!*

marthajo1--yep, I absolutely would ask! That and a few other background questions (like, how many other times have they worked together for events).

well, I work with a store that refers cake orders to me. I give them 10% of the order, and just mark up my prices to cover the 10% i don't see anything wrong with it. After all she has to pay her overhead too.