AHi everyone, I was woundering if anyone gives other vendors a percentage of an order if they refer the customer, and if so how much? I am in the final stages of starting my business, just waiting on HD inspection, and I have started networking a little bit and thought about doing this. I was thinking 5-10%.

Thanks

AI do not. I bring thank you treats or discount anything they personally order.

If they like me or my work, they will refer me & I do the same. I don't trust paid opinions & neither should my clients.

It totally depends upon the situation. I don't exchange money with anyone. I do give cross referrals as "payback" to companies that recommend me. But they already are who I'd recommend to anyone asking, so I'm not stretching the truth.

 

Vendors like clubs, restaurants or businesses that buy my cakes that's a whole different story. I sell them my cakes at a wholesale price.

AThanks guys. I'm still not sure what I am going to do. I have a carter that I wholesale items to ( expect wedding cakes) so I wouldn't do it with her. IDK I think it might get my foot in the door with some of the "big guys"

I don't think you can buy your way in the door with the "big guys". At least it doesn't work in my area. You'd do better the feed the "big guys". Drop off cakes and samples whenever you can, that will break the ice.

Absolutely not. If you try to pay the "big guys" for a referral that would count against you more than help you.

Everyone makes good points, but I decided to go ahead and offer 5% to two of the biggest event companies in my area and they seemed to love the idea. They both said they had been looking for bakers to work with since there is only two legal bakers in the area. They also said that any business I send them they will give me 15% of the job. I was shocked! Already received two orders yesterday just from them putting the word out about me on facebook! I think this might just work!

Thanks everyone!

A

Considering everyone who replied said this was a bad idea, it's a little unclear why you decided to post this thread in the first place.

It's a little too late to take back the referral fee now, but at the very least you can increase all your prices by 5% to cover the cost.

AIt's also unclear why you don't just keep your comments to yourself sometimes.

A

Wow.