It’s no secret that I don’t approve of planners and vendors who pay and receive commissions behind their clients’ backs. One way or another, the unsuspecting client always end up paying for it. Not to mention that commissions are just such an “old school” way of doing business.
Unfortunately, it’s still a common practice. Only a few months ago, a planner badmouthed me out of a design job when she learned I don’t pay commissions.
I told a friend about this incident, and, while we were talking, it finally hit home. These greedy vendors are the folks who are making “the big bucks” in the wedding and event planning industry!
My friend explained it like this:
Let’s say a bride is spending $100,000 for her wedding, and the planner is getting 15% (the going commission rate) from all the vendors — florist, venue, invitation designer, photographer, DJ, videographer, caterer etc… That planner is making an additional $15,000 of clear, easy profit.
That’s greedy money, plain and simple. The bride thinks she’s getting a $100,000 wedding. But, in reality, she’s being shortchanged. $15,000 is a lot of money and can make a big difference in the look and feel of an event. $15,000 buys a lot of gorgeous flowers!
The only way to stop commissions is to educate clients; they must get vendors to commit in writing that they are not receiving any commissions behind their clients’ backs.
Dear Readers, what are your thoughts on this loaded issue? I’m especially riled up because of losing that great design job. Have you ever lost a job because you don’t pay commissions?
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George Bernard Shaw once said: “You see things and say, ‘Why?’ But I dream things that never were and say, ‘Why not?’” That quote embodies how Preston Bailey approaches every event.
Patricia Simitakos The Eco Conscious Planner
May 17, 2012
I believe in being transparent and accountable. (Two very rare things in our industry, I find…) Because I handle both corporate and social events, I negotiate payment of my services as either a flat fee with no backend commissions for private clients, or as commission only for business clients. But in either case, I ALWAYS make the full contract and payment schedule clear and available to the client. This has sometimes caused tension with certain vendors, but I have learned to only work with vendors that have no issue with being transparent in business. You have to do the right thing – it isn’t always easy, and it can yes cost you business, but in the long run you have to be able to love what you do. And I could not love this industry if I had to be sneaky in this way.
Julie
May 17, 2012
I have always agreed with you on this. The practice also encourages the planner to use vendors that may not be right for the client. While everyone will have friends and maybe even some people that they prefer not to work with in any business, I won’t ever make a client use someone they don’t like simply because of a relationship that I have with that vendor.
Amanda
May 17, 2012
I always go back and forth with this issue. I can see both sides of the story. Just to play devils advocate, many vendors look at commission fees as a may of marketing. If a business is build off of networking, and word of mouth, (a lot) less money is spent on the more traditional forms of advertising. That 15% commission those vendors gave to the planner may be in their marketing fees – it just went to the planner rather than the magazines!
Cheryl Dotson
May 17, 2012
I totally agree as 15% can make a significant difference. I quote an all inclusive price to my client so I have not experienced this situation. Thank you so much for your inspiration and guidance. I look forward to taking your Wedding and Events course and hope one day to meet you in person. Maybe you should think about visiting Nashville Tennessee. Hopefully I can make one of your conferences.
Very well said Preston.
May 17, 2012
Very well said Preston
Gloria
May 17, 2012
I supect that as events are more complex vendor wise,that there are planners and vendors who rather make their profit in the form of commissions instead of doing the hard work of real number crunching and cost control.
kezban
May 17, 2012
I’m an event planner in nigeria & i think the commissions have become common place. Working at the agency, we had the 15% agency commission, but we also had to get these commissions on the side in order to attain a certain level of profit margin for the company. I worked at three agencies and it was the same. I always wondered how it’s done in other countries. Planners here lose jobs regularly because of these commissions it’s ridiculous. We even lose jobs for not giving certain client contacts comissions. Quality of work hardly matters. I totally agree with you & greedy money just about sums it up!
Rebecca
May 17, 2012
Agreed!! It amazes me how much of a common practice this is! It kind of takes me back a bit when fellow vendors (most often photographers) say, ‘I throw in a 10% (or more!) referral bonus for you referring my business.’ Unbelievable! I always respond with, ‘I never have or never will take commissions or kick-back in any way. If you would give me 10% I ask that you pass that onto my clients instead, as they are the ones paying thousands for their wedding day. I refer vendors based on my clients needs, personalities and budget, NOT about what I get in return.’
They always respond with ‘wow, yeah, I can pass that discount onto your couples.’ I more often than not never end up using these vendors- just a bad way to run your business because you’re right Preston, the couple always ends up paying for it.
Damaris Mia {Le Magnifique}
May 17, 2012
This irks me. I used to work at a commission-based optometry office and I hated “having” to push certain products on customers. Definitely not my style!
Heather Chesnet
May 17, 2012
We are relatively new wedding & event planners but we have committed from the start to never accept commissions or kickbacks. We were recently working with a DJ who told us he pays $75 for referrals. We told him that we do not accept money from vendors for referrals but if he is willing to offer that $75 as a discount to our brides, I will be sure to let them know. His response shocked me. He told me that he respected our decision, but that he was only willing to give my bride’s a $25 discount. Really?!?!? How does that make any sense?
Ben
May 17, 2012
Preston – THANK YOU!!! Excellent choice of words and layout of an epidemic. Very interesting points, not just in the article but in the comments it generated below. I generally agree with the article. I’ve seen too many times a planner, venue, or event firm utilize a vendor for clients’ events that are not best suited for those events only because of the kickback they receive from that vendor. My conflicting opinion is that I own a small, but strong, entertainment company that has made a business from our strategic partnerships. Those partnerships generate a more focused effort than a magazine, trade show, or a general website with umpteen different listed vendors. It’s a fine line of nepotism we walk, but when done properly with reputable services I honestly believe the vendor-planner/venue/event firm relationship is crucial.
Stephanie Wales
May 17, 2012
AMEN! As a photographer, it also IRKS me to no end when Venues offer “Preferred” lists that in reality are list of Vendors that have paid the Venue a commision be on the list. Same thing and I think it’s a tremendous disservice to Couples.
Jeanne
May 18, 2012
I want someone to choose me because I’m good at what I do, and they like my product; not because someone steered them to me because they’re going to make commission. People like to have recommendations for vendors; they’ll ask venue managers who they recommend. I want them to say my name because I can do what the client wants and I can be a good fit for the client.
I hate the practice of paying to be in a venue’s brochure because that’s how they put their preferred vendor list together. It just means the companies with the budget to pay for the ad are the ones who can afford to be part of the vendor list. It has nothing to do with talent, just $.
Becky Hill
May 18, 2012
Preston,
Thank you for speaking up on such an important issue in our industry. “Pay to play” without informing the client is borderline illegal and truly unethical. I am proud to say that after 10 years in the industry I have never paid a commission and only work with planners who share this philosophy. Glad to know that someone of your stature stands along side us.
Best wishes,
Becky
Jean Neuhart
May 18, 2012
Amen! Commissions, kickbacks, referral fees, preferred lists . . . They all equal to couples being matched up with vendors fo the wrong reasons. Sure, we all want to make money, but this is not the way to do it.
michael
May 18, 2012
WHAT WOULD YOU LIKE TO SAY?
michael
May 18, 2012
Well said!
Jai Girard
May 18, 2012
THANKYOU! I have met many planners who do not work for their client,s best interest in mind but rather for their own wallet…it is fraud and reminds me of gangster tactics!
Nirjary Desai
May 18, 2012
I agree with you 210%! Brides need to be educated because there are planners out there that do this for the Glamour effect and not about helping the client and providing customer service to the fullest and it gives the rest of us who do good work and are passionate about providing good service a bad name for no reason! It is sad that it happens every day, but if you are good like you like to say then there is not reason to accept commission, just charge what you think you are worth and people will see the value in your honesty, no need for shadyness! It happens and it sucks!
Danielle
May 18, 2012
I am a planner….but I do not repeat do not believe in kickbacks in any directions. I want to refer wedding professionals because they fit my clients style, vision, and of course budget not because I’m receiving $ from the professional. I think this is such bad karma and in turn creates such a bad wrap for wedding planners. Not how I run my business and don’t work with people who do this.
Jo Ann Schwartz Woodward
May 18, 2012
Preston,
Thank you for sharing this important piece of information. Unfortunately this is a very common practice in the Indian Wedding Industry. We always appear much more expensive than the other vendors. I clearly explain this to clients but it is not always understood or believed that wedding professionals do this.
Jo
May 18, 2012
Hi Preston. I totally agree. I pass on any discounts from vendors to my clients x
Johnathan andrew sage
May 18, 2012
I Prefer to work with planners .the good ones charge a flat fee
I also am contracted by catering companies who mark up my work 20%. However it is understood by the clients that if they are coordinating the function they up barge. I am fine with that. i do the same when am sub contracting other vendors BUT I am very upfront with the clients I am doing so. I give them option of contracting these subs directly and handling the paperwork and contracts ,relieving me of any liability should anything go wrong. I would never Leave a client hanging if additional attention to detail was needed involving other vendors,.
I have been very upset when these catering companies have up charged more than the 20% , It makes my work appear far too expensive.
Kick backs are in poor taste and always has a potential for someone getting a raw deal. If you do good work you should be compensated and not have to bribe or get extorted in the process.
Johnathan
Paul Meyer
May 18, 2012
Have I lost out on jobs because I refused to pay to play? Yes….. several times.
The planners I have encountered who ask for something don’t ask for a cash kickback, Instead they ask that the vendor “kick in” something extra to their offerings as a bonus…. so that the planner can brag that they got their client something that they wouldn’t have gotten without them.
This “extra” usually amounts to something valued at 10-15% of the amount being paid to the vendor…. and it comes out of the bottom line of the vendor.
Pearl Malta
May 19, 2012
I am totally against commissions but unfortunately it is a very common practice. Some planners use it as a way to reduce their fees and ‘look’ more competitive in the eyes of the client. It is simply unfair both on the client and on the industry. I do agree with you that the planners that accept commissions make the ‘big bucks’ however I rather feel good about what I am doing and build my reputation on honest work.
YOUR NAME
May 19, 2012
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Chicago Photographer
May 21, 2012
Preston, I love it when I hear a Chicago area high-end consultant telling their client that they only refer the very best vendors. These clients have no idea that their wedding planner is only choosing vendors who pay them top commissions. If clients knew that their wedding would cost 10 to 15% less with the same results maybe these planners who run their business via commissions would be black listed instead of us who try to be honest and run a business on merit, creativeness, quality of our product and customer service. Commissions, kickbacks, referral fees, preferred lists . . . They all equal to couples being matched up with vendors for the wrong reasons.
Brides need to be educated because some planners only refer vendors for the extra kickbacks/referral fees and not to offer their brides the best vendors. I am totally against commissions and that is why wedding planners will not refer us. Some try to pawn it off as marketing fees or money we would have spent in a bridal magazine. That’s all hogwash. It’s not right and it increases the cost to those clients who try and have a beautiful wedding only a wedding planner could pull off.
Wedding planners are an iatrical part of the wedding industry that can put together and create the wedding of your dreams. Don’t hold us honest vendor’s hostage just because we won’t play your kickback game. Thank you Preston…
Beth Bernstein
May 22, 2012
THANK YOU for starting this discussion. It inspired me to write my POV on this on TheBrideScoop.com: http://thebridescoop.com/2012/05/tip-tuesday-wedding-planner-commission/ This really needs to stop.
Simon Blanco
May 23, 2012
I have also had bad experiences where the venue wedding coordinator, or planner had made things exceptionally difficult for me to do my job, in hopes that I would screw up and look bad. I have had a venue coordinator completely ignore my phone calls & emails, and would not talk to me when we did a walk through with the client (whenever I tried to address her, she just looked at her phone and ignored me).
I would love if you looked at (and commented) on my recent article which is all about “Pay To Play.” http://weddingexperience.wordpress.com/2012/05/22/referrals-the-dirty-little-ecret/