If you've wondered how a venue sourcing service can carry no additional client cost, the answer is usually commission. Here's how it works — and where it doesn't apply.
What venue commission is
Many corporate venues operate a commission model — paying a percentage to the agency or partner that refers confirmed business, much like commission in travel or recruitment. It isn't universal: not every venue participates, and rates differ from one venue to another.
Why it can mean no additional client cost
Where a venue participates, an appointed sourcing partner can be remunerated by the venue rather than by the organisation. That's how venue sourcing can often be delivered at no additional cost to the client. It varies by venue, may not apply to every booking, and some elements — AV is a common example — may not be commissionable at all.
What procurement teams should ask
- Is this venue — and each element — commissionable, or will a fee apply?
- If a fee applies, is it agreed transparently in advance?
- Is commission disclosed on request?
- Can spend be reported so we can see the full picture?
What this means in practice
In practice: where a venue is commissionable, you get professional sourcing, benchmarking and reporting typically without an added fee; where it isn't, you're told up front and any fee is agreed before you commit. Commission never replaces the value of independent benchmarking — that's how you confirm a rate is genuinely competitive, regardless of any commission.