Is This A Good Referral Fee?

Business By glanduners

glanduners Cake Central Cake Decorator Profile
glanduners Posted 22 Aug 2012 , 7:41pm
post #1 of 1

I was contacted today by a woman I have met before (but don't know personally) who owns a children's party planning business. Here is part of what she wrote:

"Im looking for a bakery that can do some custom cakes, cake pops, and cupcakes to match my themes. Would you be interested in partnering with me to provide that? How it would work is, a mom would order a party from me, either a tea party, a princess party, Under the Sea Party, or a Spa Party, and she would have the option to order a coordinating cake/cupcakes or cake pops, choc covered strawberries as an add on. Any orders that come in, would go to you, and you would provide that through me. I would bill and collect and pay you. In return I would keep a percentage of the sale, say 20% or whatever you feel is fair for the referral."

So, this is not a typical referral, as the clients would choose whether to have a treat added on to their package with her, but I would get 100% of the orders she receives. My question is, is 20% a reasonable referral rate? If not, what is? Thanks for your input!


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