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P&C Licensed - How to Be Referral ONLY Agent?
- Thread starter indycfp
- Start date
- 648
Sorry- I don't know any successful "gatherers" All the successful agents I know are hunters.
- Thread starter
- #3
- 385
Why would a successful agent split commissions when he/she can go out and find other clients with no commission split? I could see an agent paying you per referral(essentially an appointment setter), but I doubt any agent will split any commissions, especially since that agent will be doing all the service work/maintenance of the accounts while you do nothing.
- 1,581
I would buy a good P&C book ANY day at 1.5x. So that means 1.5x the annual commissions. So if somebody refers business you can absolutely make money even paying 100% of the 1st year commission if you trend the numbers.
I have a few financial guys that are licensed I give them 25% of the new business commissions. I also do the same for other scattered referral sources (some I even give 50%) Why the heck not? It's free business. The truth is unless you work in real estate, lending or financial services it will be hard to consistently refer business to make money that's worth it.
I produce a boat load & I'm happy to pay out referral commissions on the small % of my business I get that way.
I have a few financial guys that are licensed I give them 25% of the new business commissions. I also do the same for other scattered referral sources (some I even give 50%) Why the heck not? It's free business. The truth is unless you work in real estate, lending or financial services it will be hard to consistently refer business to make money that's worth it.
I produce a boat load & I'm happy to pay out referral commissions on the small % of my business I get that way.
- 15,041
You have a very short sighted mentality. Unless you think you are only going to keep these people for a year, it is free money to you. Pay some FYC and have a client for years paying commission into your agency.
- 385
Vol, when he said commission split, I was interpreting it as commission split for the life of the policy. I agree with you about a % of FYC(is that not the same as a referral fee, just with a different name) just not anything on renewals. I guess I read too much into the question. I would gladly do a referral fee/FYC split in that situation. Keeping clients for only a year would be waste of time. I want lifers and all their policies!
- 15,041
Perhaps I misunderstood?
Although a small portion of the renewal still wouldn't be bad. 10-20%.
- 11,996
If the referral was just to pay half of FYC I think it's a slam dunk for everyone. The tough thing is that P&C doesn't pay huge commissions (personal lines anyway) so there isn't much meat on the bones for folks to get greedy with and as long as everyone understands that I'm sure there is opportunity there.
- 15,041
Exactly. That is where the **** hits the fan. Life agents, myself included, have a hard time adjusting our thinking of huge FYC to level comp. I bet the OP is going to get tired of it really quick when he keeps sending over PL clients where the comp is maybe 200 FYC and getting half of that.
