- 191
Would giving away a free website with a commercial insurance policy be a form of rebating? Technically it would just cost the amount of a domain registration and then my personal time to build the site.
Any thoughts?
Any thoughts?
Pretty Sure this Might Be Rebating - Confirm?
- Thread starter robb01
- Start date
If you are charging them? No. If you give it to them just for a quote? No.
If you give them a website for free as part of them getting a policy with you? feels like rebating.
Substitute "free website" for "$20.00." Does that sound like rebating then? If so, probably rebating.
It comes up a lot for flood policies and flood elevation certificates, too.
The easy way to look at it is if you feel the website would have commercial value. Would they normally pay someone to do something similar for them?
If so, its rebating, and if the website you are proposing is for external use (rather than perhaps employees looking up insurance info), then you already know the answer is yes, this is rebating.
Next question is whether its a problem in Illinois. I don't know the answer to that, but I suspect rebating isn't allowed there.
Dan
If so, its rebating, and if the website you are proposing is for external use (rather than perhaps employees looking up insurance info), then you already know the answer is yes, this is rebating.
Next question is whether its a problem in Illinois. I don't know the answer to that, but I suspect rebating isn't allowed there.
Dan
- 11,995
Didn't read, going to say yes (now I go back and read).
- - - - - - - - - - - - - - - - - -
Yup, called it.
The question isn't what you'd charge, they're going off the market value. If you really and truly do run a website business and give folks websites for $10 and will give them to any client, regardless of their purchase, then you're in the clear. That said, it doesn't pass the smell test. A custom website in any form is worth $100.
- - - - - - - - - - - - - - - - - -
Yup, called it.
The question isn't what you'd charge, they're going off the market value. If you really and truly do run a website business and give folks websites for $10 and will give them to any client, regardless of their purchase, then you're in the clear. That said, it doesn't pass the smell test. A custom website in any form is worth $100.
Last edited:
- Thread starter
- #5
- 191
Figured as much, now...how about a raffle? Every 3 business owners that place their insurance with me get entered into a raffle to win a website?
- 10,275
Why not skip the "place insurance with you" and just raffle off stuff each month?
- 11,995
My only reference I know for sure is that it would still be subject to the dollar amount rule if it was MA.
I like chumps idea of putting it into a raffle for everyone, could be a great way to build your mailing list.
Anytime you tie it to a purchase, then you'll fall into the rebate trap. Make it a raffle and require a purchase, you'll fall into gambling issues as well.
Do the raffle based on getting a free, no obligation quote and you'll probably be fine. After all, this is what you want anyway right, a chance to earn their business?
Dan
Do the raffle based on getting a free, no obligation quote and you'll probably be fine. After all, this is what you want anyway right, a chance to earn their business?
Dan
- 188
Also falls under many state gambling laws! Many states require raffles to be sanctioned and normally only allow non profit orgs to hold one.
Sherd
Expert
Even big box stores. restaurants, etc include the phrase "no purchase necessary" in their reward games.
The best two ways of steering clear of rebating is
1. Make sure a purchase is not required to participate.
2. Don't offer anything.
raffle? Many organizations often have them. I don't know what is required in your state, county, or city.
goodluck
sherd
The best two ways of steering clear of rebating is
1. Make sure a purchase is not required to participate.
2. Don't offer anything.
raffle? Many organizations often have them. I don't know what is required in your state, county, or city.
goodluck
sherd
