Finder’s Fees? …We Don’t Do That
Referrals are so important to small businesses such as my own. As a planner, I refer my clients to vendors all the time! When vendors I’ve partnered with have referred clients to me, I have been extremely grateful and appreciative of the gesture and have thanked these vendors either with a small “thank you” gift like a fruit basket or small monetary compensation—whatever is most appropriate for the vendor type. I purchase these gifts or give the money from my own account.
Now, I’ve had two situations where vendors I’ve worked with have requested or charged a “finder’s fee” to clients for finding a vendor they need. Let me outline the situations for you and explain why this is not something I condone or would ever expect myself.
Scenario 1
I had a couple who booked me the week of their wedding for coordination (yes, it was a VERY last minute realization that they needed help, and we were available for their Friday wedding!). They decided the week of their wedding that they wanted someone to play the processional and recessional songs during the ceremony. Their DJ happened to know someone who could do this and offered to facilitate the securing of this person for their ceremony. The clients told me the DJ said the violinist fee would be $300, but later said it would be $350. I spoke with the DJ to verify the fee amount and get the contact information for the violinist. The DJ said the violinist said $350 was the fee amount.
I contacted the violinist to discuss the itinerary and songs our clients requested. There were a total of 3 songs the violinist would play during the ceremony. I had another couple who expressed interest in a violinist for their ceremony instrumentals, so I asked them if they charged per song, or if the fee was a flat rate. The violinist said they were charging $100/song, so $300 total. They said the fee was to cover the cost of purchasing the sheet music and the time spent practicing the new songs. I thought this was MORE than reasonable pricing. However, I was concerned that there was, again, a discrepancy in the fee amount. I asked how much the fee for our clients was and the violinist said $300. I told them the DJ told us $350, and the violinist said the DJ must have added on a finder’s fee…
The DJ charged the client $50 for connecting them to a violinist. I was appalled. It didn’t sit well with me that the DJ wasn’t even being transparent about the $50 fee. He told me the violinist was charging $350. I confronted the DJ and asked if the $50 was a finder’s fee and the DJ affirmed. I let the couple know this and offered to push back further. The couple decided not to address the situation and pay the money… and I decided I would never work with this DJ again.
Scenario 2
A vendor I worked with messaged me one day to let me know they had a client who was in need of wedding services I offer that their company did not. I let them know I was very appreciative of their referral and gave the info they needed. The vendor then asked if I wouldn’t mind adding on a fee for the clients to give the vendor as a finder’s fee… [face palm]. I let the vendor know that I would NEVER charge a finder’s fee to a client, but that I would happily compensate them myself for any clients they refer to me that book services. I hope the way I responded sent a message about finder’s fees.
Concluding Thoughts
Vendors should not get in the habit of charging clients for connecting them to other vendors. If anything, the vendor being referred should be the one to provide a gesture of thanks to people who being them business. Our clients pay thousands of dollars to hire the vendors needed to host an event. If I’m referring a vendor to a client, it already benefits me if they book the vendor because it’s a company I’ve woked with before and I know the quality of their work. It makes my job a lot easier to do when I trust my partnering vendors through experience to do their piece. When wedding teams work together well, the client also has a much better experience, and this leads to better reviews, which leads to better business… It’s a cycle. Vendors shouldn’t swindle more money out of people for referring them to vendors. Period.
