Your vendors are your reputation
Clients rarely see the vendors you choose until something goes wrong. A chauffeur who arrives late, a florist who misses the brief or a villa that does not match its photos reflects on you, not on them. A strong vendor network is the part of the business clients can’t see but always feel.
Think in categories. Most firms need dependable options for dining, hotels and villas, ground transport, private aviation, florists and gifting, events and tickets, household services such as cleaning, maintenance and security, and specialists such as tutors, nannies and personal shoppers. Map the categories your clients use most, then build depth there first.
Where to find good vendors
The best vendors usually come recommended. Ask hotel and club concierges, house managers, event planners and other lifestyle managers you trust who they rely on and why. Ask your best existing vendors too: a good florist knows the good event producers.
Trade shows, industry associations and hotel or destination representatives are useful for travel and hospitality partners. For household services, other estate staff and property managers are the best source. Whatever the route, treat a recommendation as the start of vetting, not the end.
How to vet a vendor before a client depends on them
Meet the vendor, see their work and, where possible, use them yourself on a low-stakes booking. You are judging three things: quality, reliability under pressure, and discretion.
- Ask for references from clients or firms like yours, and call them.
- See the product: eat at the restaurant, ride in the car, walk the villa, look at recent event work.
- Ask how they handle a last-minute change, a complaint and a cancellation, and who to call out of hours.
- Check licenses and permits where the work requires them, for example for transport, aviation or contractors.
- Ask how they protect client information and who on their team will know the client’s name and address.
- Agree how they will invoice you and how quickly they confirm bookings.
Trade rates, net rates and commission
Many hospitality and travel vendors offer trade or net rates, commissions, or added value such as upgrades and amenities to firms that bring them business. These arrangements are normal and can make your service better value for clients. They also create a conflict of interest if they are hidden.
Agree each arrangement in writing: the rate or commission, when it is paid, how cancellations are handled and how long the terms last. Then decide how you will treat it in your own pricing, and be consistent. Some firms pass trade rates straight to clients and charge a service fee; some keep commissions as part of their income; some do a mix. All can work if the client knows.
Put your approach in your client agreement and answer honestly if a client asks. Clients who find out later that you earned a commission they did not know about will question every recommendation you have made. Rules on disclosure vary by country and by industry (travel selling, for example, is regulated in some places), so ask a lawyer to review how you describe it.
| Arrangement | What it means | How to handle it |
|---|---|---|
| Net or trade rate | The vendor charges you less than its public price | Decide whether you pass it on or add a markup, and say which in your agreement |
| Commission | The vendor pays you a share of what the client spends | Disclose that you may earn commission and log it per booking |
| Added value | Upgrades, credits or amenities for your clients | Pass them to the client and note them on the booking |
| Preferred partner terms | Priority access in return for volume | Make sure the client’s interest still decides each recommendation |
Insurance, NDAs and paperwork
Any vendor who enters a client’s home, drives their family, handles their property or runs an event should carry suitable insurance. Ask for a certificate of insurance (COI), the document that serves as proof of their coverage, and note its expiry date so you can ask for a new one before it lapses. Your own insurance broker can tell you which coverages and limits to require, and whether you should be named as an additional insured.
For vendors who will learn a client’s name, address, schedule or family details, use a non-disclosure agreement. Keep it short and clear: what counts as confidential, that they will not photograph or post about the client, and what happens if they do. Store COIs, NDAs and agreements with the vendor’s record, not in someone’s inbox.
Always keep a backup
Your favorite chauffeur will be booked on the night a client needs one. For every category you depend on, keep at least one vetted backup, and use them occasionally so the relationship stays warm. In key cities, keep two.
Mark each vendor’s status clearly, for example preferred, approved, under review or do not use, so anyone on your team can choose correctly when you are not there. Record which clients each vendor has served and anything the client liked or disliked, so a backup can be briefed properly.
Review vendors every quarter
Once a quarter, look at each vendor you used: how many bookings, any problems, how quickly they confirmed and fixed things, and what clients said. Move vendors between statuses based on what happened, renew expiring COIs and agreements, and check that commissions you expected actually arrived.
Our free preferred vendor list template gives you a structure for all of this, including status, rates and commission, insurance expiry, NDAs, quality notes and a quarterly review log. As your network grows past a few dozen vendors, a CRM with vendor management can keep contacts, negotiated rates and commission agreements together, log commission on each booking and report spend and commission by vendor, which makes the quarterly review a matter of reading a report.