Paying Refferal Commissions to Other Licensed Agents

[markschneider86]

I will never split commissions, my deal is we refer each other biz and you take car of my client.

 

[somarco]

I neither ask for, nor expect, anything from a referral. Some times I get a gift card, sometimes nothing. But if I ever hear that someone did not follow up, or took advantage of the referral, they will never get another referral again.

 

[Full Throttle]

Yeah I would love to see it....I don't know how often or practical it would be because I would only work it with captive type people in noncompeting lines of business which rules out P&C because some many have requirements on life.

I split commissions all the time, it's the most equitable way to do business. I sent a financial advisor type a 1099 for over $10,000 last year and many more to other advisors/P&C guys for $2,000 to $5,000 range. It's a win for the client, it's a win for me since I get business I otherwise wouldn't with very minimal effort, and it's a win for the referrer since they build an income stream without having to become a group expert.

I have contracts with group health carriers that others do not have since they require a certain amount of production and unless an agent is actively writing health or has a book built, it's impossible to get them appointed anyway. I write the business in my name since I'm appointed and each month I write them a check for their portion. At the end of the year I send them a 1099.