What about non-financial kickback, i.e. an assumption or understanding of future referrals on the part of whoever you have referred people to? Should one recommend a vendor based on the knowledge that this may then get them more referrals in return? Sometimes you know up front, like when your reception venue only works with certain caterers. If it is happening behind the scenes, would that be ethical?
What do you think? I'll tell you next week how I feel.
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2 comments:
While the financial kickbacks are in my mind always suspect and make it questionable if a vendor is working in the best interest of their client, or of themselves, non-financial could be a big grey area.
At what point does it not become networking and become you scrub my back and I'll scrub yours.
For networking it's not unusual to refer clients to vendors who may refer clients back to you. You know them, you trust them, your previous experience working with them tells you they are a good fit for the client.
But if it's just because they'll throw you a bone back, is it that much different than a kickback? Is it looking out for the client or looking out for yourself.
Lots of grey in this area at a time when social media and networking are such an important part of everyones business.
I think that any exchange for your benefit over the customer's is unethical. I have not yet met a vendor that was right for every client.
There is a vendor who recommended me often and I was not able to reciprocate for a number of reasons. Eventually I stopped receiving their referrals and that's fine. Conversely I recommend a vendor who regularly recommends another planner. It sucks but I make referrals based exclusively on the needs of my clients. And it works.
My clients are happy with the team that I build for them. In the long run that is more important than allying with someone who may or may not be around or who eventually moves on to someone that they think can help them more than you.
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