Subcontracting. Any suggestions, thoughts or ideas?

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Subcontracting. Any suggestions, thoughts or ideas?

Postby jbrown157 » Wed Feb 07, 2007 12:04 pm

Looking at starting to subcontract out some events and need to set up a structure as to how to do it effectively. I have some ideas how I might try to do it, but would be very interested in hearing thoughts from those who already do it successfully. The concept being providing excellent service to the clients (highest priority) while fairly compensating the DJ doing the event all while making a profit. A win-win situation for everyone. Some questions to ponder;

1. How do you decide what to pay the sub? Percentage? Hourly rate? flat fee?

2. To what extent should you expect the sub to meet your standards?

3. Do you place restrictions of any kind on the sub when performing at events that you booked?
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Postby CJ Greiner » Wed Feb 07, 2007 6:29 pm

I'm not sure what your sub situation is...

We only sub out to other established DJ companies, so we keep between 15% - 25%, depending on the situation, and they get the rest.

We're counting on them to provide their own equipment, meet with the B&G ahead of time, and do a great job. They generally represent our company when doing the job -- just as we represent their company when we sub for them.
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Re: Subcontracting. Any suggestions, thoughts or ideas?

Postby Toneman » Thu Feb 08, 2007 1:03 am

jbrown157 wrote:1. How do you decide what to pay the sub? Percentage? Hourly rate? flat fee?
I agree with CJ's statement about pay. I keep a percentage of about 15% and the sub gets the rest. For an event that is $500, I get $75 and the sub will get $425 and I hold the contract with the clients. Also I do a Agreement Contract with the other DJ service stating the payment agreement between us.

jbrown157 wrote:2. To what extent should you expect the sub to meet your standards?
Find a sub that has the same or close to the same standards that you have. Have one that you are familiar and have worked with. Ask some of the same questions that clients have asked of you about your service.

jbrown157 wrote:3. Do you place restrictions of any kind on the sub when performing at events that you booked?
I only ask them to meet my attendance, appearance and conduct policy.
Attendance - They will be at the event location no later then one hour before the event for setup and have setup complete 15 minutes before contracted start time.
Appearance - Their appearance will be of professionalism and meet any dress code of the client's request. (Generally semi formal - dress shirt, tie and dress pants. NO BALL CAPS!)
Conduct - Provide the up most customer service and professionalism. No drinking - no smoking - no rude conduct.

Also as CJ stated: "We're counting on them to provide their own equipment, meet with the B&G ahead of time, and do a great job. They generally represent our company when doing the job -- just as we represent their company when we sub for them." Failure to meet any of the requirements will effect any future joint ventures and referrals.
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Postby djdonny » Thu Feb 08, 2007 7:06 pm

jbrown157 wrote:
3. Do you place restrictions of any kind on the sub when performing at events that you booked?
I only ask them to meet my attendents, apperance and conduct policy.
Attendents - They will be at the event location no later then one hour before the event for setup and have setup complete 15 minutes before contracted start time.
Apperance - Their apperance will be of professionalizem and meet any dress code of the client's request. (Generally semi formal - dress shirt, tie and dress pants. NO BALL CAPS!)
Conduct - Provide the up most customer service and professionalizem. No drinking - no smoking - no rude conduct.


Be careful. Once you begin to dictate how the DJ is to perform, they are no longer independent contractors, but are your employees (and require that you withhold taxes, etc.).

The IRS website writes:

Who is an Independent Contractor?
A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.
...
Who is a Common-Law Employee (Employee)?
Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.
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