No Kickbacks!!!

Paying Kickbacks and/or the Buying of Referrals is a practice that has hidden in the dark edges of the shadows of the DJ/Entertainment business since the very beginning of the Mobile Disc Jockey Industry. This unsavory practice now seems to be much more prevalent than ever and this, I fear, is the most dangerous thing facing our industry to date.

DJ Companies are buying the rights to be the exclusive “house” company for many independent halls. Many DJ companies are allowing halls to mark up the DJs price in the “package” the hall offers to the client by as much as double the price that the DJ charges the hall for their services. Venues are asking for advance payment from the different purveyors that do their work at their locations in order to be placed on the venue’s Preferred Vendors list. But worst of all, there are DJ companies that are not waiting for halls to ask for these “under the table” inducements but are actually knocking on the door and offering them to the hall owners and/or managers. Are you guys crazy as well as dishonest? You know that this is wrong, wrong, wrong and that, by participating, you are doing everybody in the Private Event Industry, including yourself, a major disservice.

The problem has reached proportions of such magnitude that some venues, having gotten used to making a major chunk of money every weekend from this unscrupulous practice, will have the nerve to charge a client an extra charge for NOT using the DJ that the hall recommends. You may say, “That’s the bride’s (or company or parents or whoever the party client is) fault for paying that fee. They should go somewhere else”. Well, as is sadly the fact, sometimes the DJ is one of the final items decided upon by the party client and to keep from rearranging everything, they bite the bullet and pay the extra fee or the go with a DJ that they did not want to use in the first place.

What should you do if a venue approaches you (holds you up/ extorts money from you/ robs you) with an ultimatum of pay to play? If it is not the owner of the business approaching you, ask if the owner of the business condones this practice. If the owner does support this, try saying “No”. If that doesn't work … all I can say is that a smart businessman knows that there is some business that you should just walk away from.

Inspite of everything. IT'S ILLEGAL! The State of Texas defines a kickback as Commercial Bribery.

§ 32.43. COMMERCIAL BRIBERY.
    (a) For purposes of this section:
         (1) "Beneficiary" means a person for whom a fiduciary is acting.
         (2) "Fiduciary" means:
               (A) an agent or employee;
               (B) a trustee, guardian, custodian, administrator, executor, conservator, receiver, or similar
                     fiduciary;
               (C) a lawyer, physician, accountant, appraiser, or other professional advisor; or
               (D) an officer, director, partner, manager, or other participant in the direction of the affairs of a
                     corporation or association.
    (b) A person who is a fiduciary commits an offense if, without the consent of his beneficiary, he
          intentionally or knowingly solicits, accepts, or agrees to accept any benefit from another person on
          agreement or understanding that the benefit will influence the conduct of the fiduciary in relation to the
          affairs of his beneficiary.
   (c) A person commits an offense if he offers, confers, or agrees to confer any benefit the acceptance of
          which is an offense under Subsection (b).
   (d) An offense under this section is a state jail felony.
   (e) In lieu of a fine that is authorized by Subsection (d), and in addition to the imprisonment that is
          authorized by that subsection, if the court finds that an individual who is a fiduciary gained a benefit
          through the commission of an offense under Subsection (b), the court may sentence the individual to
          pay a fine in an amount fixed by the court, not to exceed double the value of the benefit gained. This
          subsection does not affect the application of Section 12.51(c) to an offense under this section
          committed by a corporation or association.

Acts 1973, 63rd Leg., p. 883, ch. 399, § 1, eff. Jan. 1, 1974. Amended by Acts 1983, 68th Leg., p. 1942, ch. 357, § 1, eff. Sept. 1, 1983; Acts 1993, 73rd Leg., ch. 900, § 1.01, eff. Sept. 1, 1994.