Commission: noooo! Or yes?

Some see it as a reward for good performance, for others it is daylight robbery or fraud. Commission. It is always a popular topic between meeting professionals and there is always a lively discussion about how it is used, justified and what the proportions are. Commission is as old as the road to Rome and in the MICE sector it is regularly used as an (extra) model for earning. The mysterious triangle relationship between an end client (payer), a supplier and a third party who eventually receives the commission.

Lots of examples

Over the past years I have seen and heard many examples. An employee can receive a luxury gift or weekend getaway from the end client, still fairly innocent. But if a chairman or manager receives a stuffed envelope during a chat at the IMEX trade fair in return for guaranteeing that a supplier is successfully chosen, this is obviously debatable. But most examples involve external organisers. For example, an independent meeting professional who gets commission as an agreed part of their earning model. This gives the end client peace of mind and gives the professional an incentive to perform well. But also an international PCO with secret commission contracts with all suppliers (for all end clients), including agreements on the percentage over a whole year, validity and scope regarding (even future) sales and strict duty of confidentiality.

Trust and transparency

Everything depends on trust and transparency when it comes to whether you use or don't use commission. As long as the end client is fully aware that the third party will receive commission, that's great. But as soon as there is any mystery or anything is not clear about its use, terms, scope and how much the amount is, it can lead to problems. In a world where more transparency is required, and knowledge, pricing and experiences are becoming more and more public thanks to the internet – or more available because more meeting professionals have become self-employed – there is more conflict about commission. I think that there is still a specific place for commission in our sector, so long as we are transparent about how we use it and honest about the pros and cons. Because in the end, good cooperation with complete trust between all parties involved is essential. Not only to get the best results from every conference, but also for the image of the professional meeting industry.