Your Business is booming! You have more clients than you can handle and it is a dream come true! You are at the point where you might have to turn away business. Now what? Do you hire someone to work under your company name? Do you turn away the job? Do you call a friend and give them the lead and ask for a cut? All of these are valid question for the growing business owner.
Contracting work out can be tricky. Creating a level of business etiquette within your company will help you to prevent losing accounts and ruining friendships. When you sub contract a job to another entertainer, you are hiring them to work as a representative of your company. By law they are required to hold their own insurance policies, agree to receive a 1099, report earned income through your company and pay their taxes based on that earned income. When we sub contract a performer, they are required to sign a contract stating they will give out our cards and agree to the terms of our business practices.
I.e: No drinking on the job, show up 30 minutes early for set up, no eating on the jobs, no smoking, payment terms ..etc.
If the contractor does not follow the terms and conditions then they no longer are hired by our company and may forfeit their payment for the event. These terms protect our company image and create a standard. Some of you might be asking, “Why even bother working through a sub contractor?”, the reason would be more work! Corporate bookings are typically looking for larger dependable companies to hire multiple performers. They would rather hire one company to supply everything then hire ten different companies to do the same. Sub contracting can be a great thing. You can make a commission without having to do the actual job. If you are going to join the contracting game, make sure to have rules and standards in place.
FAB Events is a nationwide, full service, event and talent agency. We hire face painters, body painters, airbrush artists, clowns and more! Let us add you to our network of professionals. Send us an email with your resume and contact information to firstname.lastname@example.org to apply.
Referral vs. Sub contracting
I have seen more friendships go south over this issue. If you call and hand me a job, I am the one handling the administrative, billing, and physical act of the job. I consider that lead a gift, rather than an opportunity to make a commission. If you are the one doing the administrative part of the job then I have no problem paying a commission, but if I am doing 99% of the work, then I do not feel that warrants a cut of my work. I am very clear with my business relationships when they call with referrals. I always tell them, “Thank you for the job”, and ,”I look forward to the opportunity to return the favor”.
If you are wondering how to build your business, consider the idea of sub contracting. Not only will you be creating jobs, you will be expanding your business and potentially creating a full time living without having to do all the work.
Is your business face painting only or do you offer other services such as clowning, body art, henna, or balloons? Leave a comment below and share your business services with us!