Hello everyone, I was wondering how you handle compensation for referrels from DJs, party planners, "casino party" companies, etc. I have a promo dvd and I always make sure that people in the entertainment industry get a copy so they can "sell" me. Lately I have been giving someone %15 of the performance fee if they get me a gig. How do you guys handle this sort of thing?

I say Thank you very much

Party Planners and event managers act as agencies so they will probably want to do the selling on your behalf


Just make sure that you invoice them and not the client

You need to keep paperwork for these things (unless they don't want paperwork- but I didn't say that)

Depends on if you want a DJ selling your show. SOmetimes this is good and sometimes this is bad. Giving someone a finders fee is not a bad thing if it is set up ahead of time. The people I have worked with just understand that I will sell them and they will sell me.

If it gets lopsided where one is selling more than the other, then a finders fee is not out of line. It is up to you.

What do you think is a fair finder's fee? Keep in mind I do all the negotiating but without this person you wouldn't even get the show to begin with...

I say Thank you very much

Party Planners and event managers act as agencies so they will probably want to do the selling on your behalf


Just make sure that you invoice them and not the client

You need to keep paperwork for these things (unless they don't want paperwork- but I didn't say that)

You just say thank you? Nothing else?

I'll pass along a 10% finder's fee, but only if I book the show. If it's just a referral with no booking, then no fee (but a "Thank You".) Whenever I book schools, I let them know that if they can arrange for another school in the area to book the same date within a workable ime frame, both schools will get a discount in place of a finders' fee. If someone actually books me rather than simply refers, the cut is more -- 15% - 20%.

BTW, why do agents' fees keep getting higher and higher? Back in the 50's I understand that they used to get 10%. Now, some are actually asking 25%. Isn't the principle supposed to be the more they can book you for, the more they make, as opposed to making more by taking a bigger cut?

I have a deal with a couple of local dollar stores. They refer people to me when looking for entertainment, and I refer people to them when looking for goodie bag stuff.

10% seems fair to me. Figure it out ahead of time. You would have 100% of nothing if they never recomend you in the first place so keep that in mind no matter what you give. 100% of nothing is not as good as 50% of something. I am not saying that 50 is the mark, just an example. It will be more money than performing for your plants.

I shouldn't say that , it is just that my plants do not pay that well. Maybe I should start a new thread huh?

A thank you card seems fair to me.

You may want to set up an agents thing on your web site- Sell my act for $50 cash in hand.

Are you serious? We are talking about a show that you wouldn't even have if this person had not recommended you. I can tell you that if the roles were reversed and one DJ gave me a card for referring him and another gave me %10 who do you think would get my referrel the next time? Easy math...besides, you could also just tack that on to what you charge the client if it is really a problem.

I think that's the bottom line -- successful bookings. Without proper gratitude (read "MONEY") the first referral may very well be your last. Spread the wealth, and it will come back to you.

Hahahahha

Oh no no no no....I'd much rather have the Thank You card over cash. I mean hey it's just stinkin' money right? Besides the card has some writer's Hallmark thoughtful words and the performer's autograph.

Yeah especially meaningful coming from someone that just made some doh off me. I don't mind giving things and performance away for a good, maybe charitable, cause but in this topic we are talking "compensation" aern't we? Now it might be different between myself and close friends. I've helped or done things for others while absolutely refusing compensation. Sometimes its just OK or the right thing to pass it on to others as they've done for you.

But in this case its seems a consideration or lack of, between parties that are not so closely associated and an issue of business.

Better yet, show me how cheap you really are, save the money you'd spend on the card, and just mail me the $1.75 if that you big spendah...

Icentertainment, what was the laughter for (really, I want to know)? What I wrote wasn't a spritual philosophy, but plain old common sense.

What I meant was, if someone gets cold, hard cash for their referral, they're likely to do it again (I know I would!) When they get a "Thank You" note, they'll think you're an appreciative cheapskate, and probably won't go out of their way to do so again.

Hey, I'm with Randy on this one... just give em' a pat on the head and send em' on their way. - - HA! (NOT!)

Hehehehehehe... funny stuff!

Every single successful, smart professional I know ALL support the folks that support them with all manner of appropriate referral compensations. (Gifts, Money and other in-kind support and reciprocation) ALONG WITH a heart-felt THANK-YOU! I always thought it was the kind, ethical, common sense thing to do.

This is a profitable BUSINESS! I agree with Mark & Randy, we need to treat it as such! Referrals are a life-blood of almost every successful business, it's OK to say THANK YOU with Gifts and Money. Part of being a true pro in the biz!

Again, as a few others have said here, we would have never had that lead/referral and the accompanying income if it wasn’t for that gracious individual… I would feel like a selfish heel if I didn’t say thank-you “appropriately” with some manner of gift and/or money! there is no need for me to be a greedy, selfish TAKER who doesn’t share the wealth with the exact people who are directly responsible for helping me to win that wealth in the first place, is there?

I never even imagined that it was ok to NOT take care of others for helping out with our success by selfishly hording all the profit results of that refferal!

Thanks for the much needed discussion!

I am at your service and In HIS Service,
Deano
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Did I miss something? What is so funny?



Dean, you said it perfectly! But I would love to know what kind of numbers we are talking here. %5, %10, %20? A gift card to the mall? What exactly do you all think is fair?

Okay, here's my secret (not a BIG secret, but it works):

Within my newsletter, I have a faux check for $100 payble to the recipient (yes, their name is actually on the check, as this is shown through the window of the envelope that is sent to them.) This check is "non negotiable", but it gets their attention and emphasizes that they can earn HARD, COLD CASH by sending me referrals. I use that amount because it's roughly 10% of my average show fee, but the amount really doesn't matter -- it's just to get their attention. It looks like a check through the business window envelope. Beneath this check I have an accompanying story outlining my referral program. I state that the monies can go to their organization, their favorite charity, or to themselves (that way, it won't look like "payola" if someone has ethical issues, yet someone can still benefit.) I get a tremendous response using this technique.

Now, remember where you read this so you'll know whom to credit when it turns up in He-who-cannot-be-named's "Ultimate Final Kick Butt I'm better Than You Take No Prisoners And This Is The Only Way To Market But I'll Use Other People's Ideas Anyway" program.

Star power

to answer your post


No I am not serious-when I type I type sarcasticly- (dam I hate having to explain myself by typing)


so when you said are you serious- I laughed at home out loud- so I thought I'd type it.

Giving a reward whether that be cash or gift is a no brainer

but actually - you will be amazed at the responce of a Thank you card with the money- and an actual card- not a letterhead or a thankyou slip of paper a small thank you card will be rememebered long after they spend the $100

Most of my referrals come from other magicians. One guy can't do the job- they then call me. I would then return the favor whenever I couldn't do the show due to another booking. Normally 15%. I'm friends with them- that's the least I would do.

Best regards,
Matt Tomasko

I just had dejavu

Ha- me too. Had to do a double take there,

Matt