Referral Fee/ Shared Commission

skeet282

Expert
28
I have a new relationship with an Allstate agent that will refer me business. We are trying to come to an agreement on compensation for the business he refers. What does the majority do? Most of what he has referred is artisan contractors and bops but we've done a few non standard autos as of late.
 
I am in health insurance and I have a long term setup with a life insurance agent where we split 50/50. I send him a lead, he makes the sale and gives me 50% of his commission, and vise versa. Obviously the residuals/renewals are not split.
 
As long as you both have the appropriate insurance licenses you can split commissions.

50% seems a bit high. I've only done 25% for referrals to me and to him.
 
I receive referrals from financial planners, P&C and other agents who don't (or don’t choose to) write health (ind/med sup/grp). We have NO monetary referral arrangement.

The only agreement we have is if the client is interested in a product they provide (like life ins or LTC), they have 1st option at the sale (and vice versa). In some cases, due to them being captive with set product lines, they say go ahead with the sale.

The biggest assets for them is that their client (generally) will not shop with a 3rd agent where they may lose the client all together. Seems to work for us.;)
 
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