}
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Accepting Commissions: The Easy Answer
There are often disagreements in our industry on whether event planners should accept kickbacks and commissions from vendors they recommend. Here is the simple answer:
If an event planner is taking commissions or kickbacks without their client’s knowledge, it is unethical.
If you do not accept commissions or kickbacks, communicate this fact to clients so they understand how you work and get paid versus how your competitors might work and get paid.
If a vendor or venue offers a commission, simply ask if they can offer it to the clients in the form of a discount instead of paying you a commission. As event planners, it is our job to recommend the best vendors for our clients, not the vendors who are going to pay us a referral fee.
When it is acceptable to take a commission: If it is clearly communicated to potential clients that your company accepts commissions from vendors or venues, it is ethical. Your clients are aware that commissions are part of your pay before they hire your company. For example, a planner may not accept commissions from photographers or floral designers but will take a commission on hotel room blocks and rental orders if they manage those details for a client. Again, this is ethical only if your client is aware of the commission.
I strongly recommend not taking any commissions or kickbacks in your wedding and event planning business.
Do you or your competitors accept commissions?
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[…] Debbie from The Wedding Planners Lounge: says “If an event planner is taking commissions or kickbacks without their client’s […]
What do you think a new event planner should charge for their services? I have planned and coordinated 3 wedding, 3 bridal showers and baby showers. I have also planned and coordinated multiple corporate events for a small company. As I am officially starting my business, I thought $350 would be good for just initial vendor meetings and negotiations. If the client wants more extensive services $600. What are your thoughts and do you think I should negotiate my charges and services?
Thank you!
Thanks for your comment Margi. This post may help you: https://plannerslounge.com/are-you-giving-away-your-work. Also, if you want to work through the numbers together and have a pricing worksheet to use, consider doing a one-on-one coaching session. You can find more information about that here: https://plannerslounge.com/event-planner-coaching-and-mentoring.
Well said, when I set up my business I decided from the word go that I do not take ” kick backs ” and as a professional wedding planner I get the best fit for the Bride and Groom, at the end of the day one must decide who are you working for your self and your clients or your suppliers!
Good for you Collette! I did the same thing and have always felt great about it. Thanks for commenting!
Hi Everybody ! I’m new here as I’m launching my “destination wedding planner activity” for french speakers. I read your post about “Accepting Commissions : The Easy Answer” and I have a question… I saw big american destination wedding websites who offer services for free as they are only paid by commissions.
How is it possible to compete with them ? I don’t want to push some venues to get comissions but choose the suitable ones for my clients instead? Do you have some tips for me? Thank you! Delphine
Delphine, it depends on how you structure your business. There are many destination wedding planners who charge for their services and don’t take commissions. If you communicate this clearly to your clients so they understand the huge value you provide as their advocate (without taking outside commissions), you can have a successful business.
[…] Debbie from The Wedding Planners Lounge: says “If an event planner is taking commissions or kickbacks without their client’s […]
Great post, I totally agree! Just like Desiree I don’t take any commissions or kickbacks but I work with my vendors on a discount program for my couples instead (that makes them very happy).
This is a sad reality happening very often, vendors refer each other just because of commissions involved, not because of their professionalism, reliability, knowledge and experience. The couple is ultimately the victim, they will realize that the chosen vendors were not the right ones only after the wedding and it will be too late to go back…
Great comment Sabrina. Thank you for sharing your thoughts. I couldn’t agree more.
Well said! I teach this to my wedding & event planning students. Like you said, if the client is unaware that you accept commissions…it is unethical. I ask my vendors to extend the “commission” to my clients as the “Desiree Discount”. Clients love the decrease in cost and I love the referrals I receive from them. GREAT POST!
Thank you for the comment Desiree. I love the “Desiree Discount”!