Use workflow to create Vendor + Contact

Real newbie to Workflows here, so I assume there is something really basic that I'm missing.

I want to be able to send a form to potential new vendors that they can fill out and provide us with all necessary information. I've created a custom record and a form no problem. Then I have a workflow setup to turn this form into a vendor. The initial part of the workflow works great, the form is submitted, a vendor is created and all of the main information for the vendor record goes in no problem.

Its the sub-records (specifically contact & address) that  I can't get to work. I've tried adding a 2nd create record (contact) action to the 1 state which I had first setup to create the vendor, and this did not work. I tried a 2nd state with a create record action in it, and this did not give me a contact.