Mortgage Protection --kickback

[ameneses54]

Hi outthere,
I've decided to give the "term life with living benefits" a twist with the "mortgage protection' pitch. As I'm outreaching to realtors, I'd like to know your thoughts on adding an "incentive" , to the realtors in order to facilitate the leads.
What do you thing of a percentage incentive of the commission and what number would you consider reasonable?
I know this question may offend somebody, but let's be real!

 

[DHK]

You can only offer a percentage incentive of the commission... if they are also licensed, or you are in a state that allows for rebating.

Forget offending someone. Make sure your ideas are LEGAL.

 

[pfg1]

You can only offer a percentage incentive of the commission... if they are also licensed, or you are in a state that allows for rebating.

Forget offending someone. Make sure your ideas are LEGAL.

Exactly.
Now you could take them out to dinner as a "thanks" for the business, etc... but unless rebating is legal where you are, to me its not worth losing your license over - should something go awry.

I do know a guy who gives a $25 gas card to anyone who gives him a referral... regardless of whether that referral buys or not.

 

[mickeyma]

I have almost 30 yrs experience in the mortgage protection field and whatI found is that realtors are your enemy.

Why? They're afraid if you sell them an expensive plan, they may get cold feet and not go through with buying the house. They'll tell the client they don't need life insurance and focus only on the mortgage process. So, don't expect any business from realtors.

 

[VolAgent]

I have almost 30 yrs experience in the mortgage protection field and whatI found is that realtors are your enemy.

Why? They're afraid if you sell them an expensive plan, they may get cold feet and not go through with buying the house. They'll tell the client they don't need life insurance and focus only on the mortgage process. So, don't expect any business from realtors.

You're getting too early into the process then. No need to talk MP until after the paperwork is signed and the loan is funded. Any earlier than that and you just confuse the process.

I hate to be so blunt, but how can you have 30 years experience and not realize that? A realtor would do well to keep any life guy away until after that point.

 

[jemelton]

Hi outthere,
I've decided to give the "term life with living benefits" a twist with the "mortgage protection' pitch. As I'm outreaching to realtors, I'd like to know your thoughts on adding an "incentive" , to the realtors in order to facilitate the leads.
What do you thing of a percentage incentive of the commission and what number would you consider reasonable?
I know this question may offend somebody, but let's be real!

Realtors don't care what their client does for life insurance or even gets life insurance. Your kickback of 50 or 100 bucks is nothing to selling a house and making a few grand. They simply don't care what they do for life insurance.

 

[cjmarka]

Stupid thought, maybe, but has anyone tried to actually get realtors licensed, train them on product, and show the realtor how they can cross-sell to clients and add extra revenue to their sales experience? They could theoretically add $500-$3000+ per client

 

[LGilmore]

Stupid thought, maybe, but has anyone tried to actually get realtors licensed, train them on product, and show the realtor how they can cross-sell to clients and add extra revenue to their sales experience? They could theoretically add $500-$3000+ per client

Have you considered the potential conflict of interest in this situation? If it where a viable idea, wouldn't we already be flooded with real estate life insurance agents?

 

[VolAgent]

Have you considered the potential conflict of interest in this situation? If it where a viable idea, wouldn't we already be flooded with real estate life insurance agents?

Most agents struggle to sell a home a month. And that is something people want. People want to sell and buy real estate, they truly want it.

Could you imagine them with a product that actually involved selling?

 

[cjmarka]

Have you considered the potential conflict of interest in this situation? If it where a viable idea, wouldn't we already be flooded with real estate life insurance agents?

I am considering it now, and I can see an argument both ways. But what do I know, I'm no expert.

I do know, that some auto dealers, for example, were setting up auto insurance agencies on site, which was not illegal. What became a concern and illegal was that the dealers were insinuating that the customer *must* purchase insurance from their agency or else they might not be funded by the lender. Additionally, customers were lead to believe that they would save money on their car insurance, if purchased by the dealer's agency.

This led to some legal decisions (in Ohio), making the STEERING of purchasing auto insurance from the dealer illegal.

But what if the auto salesperson, who is a license insurance agent, sells you a car, then after the transaction mentions that, while you are free to purchase auto insurance anywhere, he happens to be an auto insurance agent.

Personally I wouldn't see a conflict with that, and would view a realtor's engagement with a prospect similarly.

But again, I'm no expert. Just thinking outloud. I don't see where the conflict is, unless there is steering involved.



***EDIT****

After a quick google search (take that for what it is) I found that there are many people with multiple licenses (Series 7 and real estate) who conduct both forms of transactions with their clients. There seems to be some compliance restrictions, but nothing I can see that would prevent a realtor from selling a life insurance policy to the same customer.