alwrightins
Expert
Quick question. I am an indy broker and have a finance guy looking to give me leads for a referral fee. He has his p&c license. What would be a logical fee or would you guys do anything?
Referral Fee?
- Thread starter alwrightins
- Start date
- 30,185
- 409
There are a few ways you can approach this.
You can go for a fee not contingent upon sale but set it low, like $5 or $10 (or higher if you feel they're worth it). This would be the easiest one to keep track of.
You can do a set fee on only leads that turn in to sales (since he's licensed). How much that would be would depend on what your average commissions are. Say for instance you make on average $200 per sale you could set the fee at $20 (about 10%) or $100 (about 50%) or whatever amount works for you where you still make money and keeps them sending you leads. This would still be fairly easy to track.
The most complicated way to do it is to offer a percentage of the actually commission received. Depending on how you're set up that could be kind of a pain to keep track of.
My personal recommendation would be to go with one of the first two options.
You can go for a fee not contingent upon sale but set it low, like $5 or $10 (or higher if you feel they're worth it). This would be the easiest one to keep track of.
You can do a set fee on only leads that turn in to sales (since he's licensed). How much that would be would depend on what your average commissions are. Say for instance you make on average $200 per sale you could set the fee at $20 (about 10%) or $100 (about 50%) or whatever amount works for you where you still make money and keeps them sending you leads. This would still be fairly easy to track.
The most complicated way to do it is to offer a percentage of the actually commission received. Depending on how you're set up that could be kind of a pain to keep track of.
My personal recommendation would be to go with one of the first two options.
- 7,012
Leads from a referrer would be huge. Offer him $10 a lead and then give me his phone number. 
- Thread starter
- #5
alwrightins
Expert
Ok, thanks for your opinions. I was thinking aroind $15 per quialified kead that i can fully quote not based off of sale so im not breaking the law
- 1,016
agree 100%... and on the flip side, the OP would be happier writing a check for a lead that has just sold over writing tedious little checks on leads that didn't sell.
a sale based on contingency would be in the best of both of your interests if this guy's leads are the real deal.
however, collecting for a lead whether it sells or not, is only in the best of the seller's interest.
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one thing I forgot to mention.... I would negotiate a flat rate fee for leads sold vs. offering a percentage of the sale. Aram mentioned it above. it would get to be a pain to keep track of commissions.
flat fee contingent on sale would be the way to go.
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