Referral Fee Question

[Insurance Junkie]

I am seeing 2-4 referrals from my smaller brokers and 5-8 from my heavy hitters. $1000 is a bit high probably, but $500-$700 is doable for the guys who close 6-8 loans a month. However, with the incentive I am curious to see if the smaller shops give me more than the 2-4 a month. I am an ex mortgage broker so I understand their side of the business and they value that.

It just seems like a natural fit for the broker to make additional cash and me to build my agency. He looks like a hero b/c he saved them money on a refi and I saved them on the insurance. He gets more referrals out of it, which come back to me. In a perfect world of course...

Also, it isn't a violation of RESPA as long as my company is listed as an affiliated business, anti-cohersion in place, and they aren't forcing the clients to use me.

 

[Aram Fingal]

Are you giving them the entire first year commission?

And are we talking P&C or life referrals here?

I am seeing 2-4 referrals from my smaller brokers and 5-8 from my heavy hitters. $1000 is a bit high probably, but $500-$700 is doable for the guys who close 6-8 loans a month.

 

[Insurance Junkie]

We are talking P&C.

My average client pays $2200 in personal line premiums and 15% commission is a little over $300 to my agency. I give them 40% which will be around $120. They give me 4 referrals a month they get $500.

 

[Mark]

How is this legal?
YOu know there has to be conditions. No would could afford to just give away 50 bucks. This is on postcardmania website.
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[GreenSky]

How is this legal?
YOu know there has to be conditions. No would could afford to just give away 50 bucks.

Because it doesn't say you only get the $50 upon purchase.

Rick

 

[cds251]

How can it be illegal?

They are not saying that to get it you have to buy a policy.....