Strategic Partnerships

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Enyko

Member
Hey crew, I need some advice regarding what I'm calling "Strategic Partners". In short, we don't offer services such as photo booths, we leave it to the professionals and we focus on DJ & lighting. But, we are looking to partner with a vendor that offer this and do a bit of "selling" for them on a commission basis.

We will simply add a 5 minute "pitch" during our DJ consultation telling them about this service. If they are interested, we direct them to that company and they take care of the rest. When they book the service, we get a commission. The only other thing that would be required of us is a page on our website also informing clients about the service.

The specific vendor I'm currently working with has packages from $1750 - $5500. My question is...what commission percentage makes sense for us to take for something like this?

Thanks!
 

bill_smith

MobileBeat Moderator
Staff member
I think 5-10% would be reasonable, since you do the selling. I think more importantly is to discuss it with them, and see what they feel is reasonable. If you are maintaining a web presence, and selling in the meetings you have, that is worth at least that much.

And, how would you track referrals from the website to the vendor, and sales? You could lose money not tracking that, and that woouldn't be good, since that sells for you and them 24 x 7.
 

bb

Well-Known Member
Keep it simple. Refer each other and no one pays a fee. That's what we do with vendors we feel great about referring. We never ask for a dime, even we offered we say no need. We like working with you and glad when we both book the same client.
 

Mark Evans

Mobile Beat Moderator
Staff member
Both answers are good but Bill is spot on if you are selling their product for them. If they ask if you know a service such as a Photo Booth and you say we work with this company then I would consider that a referral and take no commission.
 

bb

Well-Known Member
Same when referring events to other DJs. I would say I refer 30-35 events a year to a few other DJs I'm confident in. I never ask for a dime, and never tell the client to tell them xxx sent you to them. From the heart is my style.
 

bill_smith

MobileBeat Moderator
Staff member
Yes, indeed it is Robert. And thanks as always for the self congratulatory chest thump. Yes you rock, and yes no one ever did it better than you...and no one ever will. So now, no one can tell us apart because we are so closely intermingled.

The question the original poster asked about IS specific:

"we are looking to partner with a vendor that offer this and do a bit of "selling" for them on a commission basis."
 

bb

Well-Known Member
Big Bill, I need to buy you some strong coffee after you wake up from dreaming. No chest thumping, no better than you or others mentality here. It's sounds like you're echoing your thought of yourself. Just sayin' why can't people just refer from the heart and not always expect a cut when doing so.

The above is still referring, with a pitch, with a hope the customer will book that company so the referrer can pocket some money. So if the Photo Booth guy refers them, they pocket money too? If the dual plan works one cancels the other. Share some love, refer from the heart is simply my style! Your is about pocketing money, I'm cool with that if that's your need.
 
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bill_smith

MobileBeat Moderator
Staff member
you missed the point Robert, but it is totally OK. The original poster hopefully has some insight into what he asked about what he wanted to do with his business based on what I suggested. Whether or not he decides to refer, or sell, is entirely his business. My Goal is to give the best advice possible on what was asked. Misson accomplished, done
 

bb

Well-Known Member
You Rock Bill!

I need some advice, seems like "not" a singular position on giving advice. Anyways, keep your Crown on I have no intention or desire to want it. :)
 
I worked with a company once and for the service they requested of me, I asked for $50 and received $50 from the company. Later on, I found out that for the service, the client was charged $300...but I got $50. The client thought it was a bit much (they were on to something) but still booked anyways. I received an extra $50 later on because they tried to pull a fast one on me...but still they made 2x as much as I did. Take what you would like from this story.
 

Ausumm

Active Member
Keep it simple. Refer each other and no one pays a fee. That's what we do with vendors we feel great about referring.
Not only that, there's a good chance THEY will refer YOU for gigs to return the favor.

Besides, as soon as you involve MONEY in the equation, there is the potential for disagreements, arguments, and problems.
 

Ken Heath

Super Moderator...da-ta-daaa!!!
Staff member
I agree that money should not be involved. I have a group of DJs locally who loan each other equipment when needed and pass along jobs when available, all with no money involved.

As for telling someone "I" sent you; If the client knows and trusts me already, and I am referring you, then it really does go a long way to cement your credibility if the client knows I'm sending you.

There's an old Jewish proverb:
If I do you a favor and you don't know about it, then I have done nothing.
 
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