As a P&C Agent Looking for Referrals...

Derrick

Super Genius
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If I can convince one, or a few, real estate agents in my area to get their P&C license, could I LEGALLY compensate them for referrals to their clients for homeowners (or even auto if I can talk them into the discount).
 
If I can convince one, or a few, real estate agents in my area to get their P&C license, could I LEGALLY compensate them for referrals to their clients for homeowners (or even auto if I can talk them into the discount).

There is a form that the client has to sign acknowledging the conflict of interest. It is the same form mortgage brokers and title co.'s who own an insurance agency have to have on file.
 
I think the form is about 3rd party relationships, not really a conflict of interest, but the client has to be made aware of the sharing of data / referral and sign off on it.

It can be done, but its not going to get you a ton of referrals. You can usually find better ways to get them.

If you think about it, the average realtor sells maybe 2 homes a year, a good realtor might sell 2 a month at most. The ones selling 2 a year would love to squeeze out a few more pennies in the transaction, but the volume doesn't warrant their time and expense to get licensed. The very, very few that sell over 1 a month are usually to busy to be bothered with getting licensed for a small referral fee (your FYC vs their sale commission).

The 2 places this might make sense is the realtor broker, who, as a brokerage, refers all deals to you. Agents might object to these brokerage arrangements, but you'll get more volume. The other one is mortgage brokers, who if they don't have a relationship already, might do it and may be able to refer enough business to you to make it beneficial for both of you.

Realtors / mortgage brokers are great referral sources but paying for the referral has never seemed to work out as well as a lot of agents hope. Car dealers on the other hand, work very well for this, a different mentality.

Dan
 
I think the form is about 3rd party relationships, not really a conflict of interest, but the client has to be made aware of the sharing of data / referral and sign off on it. It can be done, but its not going to get you a ton of referrals. You can usually find better ways to get them. If you think about it, the average realtor sells maybe 2 homes a year, a good realtor might sell 2 a month at most. The ones selling 2 a year would love to squeeze out a few more pennies in the transaction, but the volume doesn't warrant their time and expense to get licensed. The very, very few that sell over 1 a month are usually to busy to be bothered with getting licensed for a small referral fee (your FYC vs their sale commission). The 2 places this might make sense is the realtor broker, who, as a brokerage, refers all deals to you. Agents might object to these brokerage arrangements, but you'll get more volume. The other one is mortgage brokers, who if they don't have a relationship already, might do it and may be able to refer enough business to you to make it beneficial for both of you. Realtors / mortgage brokers are great referral sources but paying for the referral has never seemed to work out as well as a lot of agents hope. Car dealers on the other hand, work very well for this, a different mentality. Dan

Just an FYI-it's illegal to pay a mortgage broker or REALTOR for leads. I agree with everything else.
 
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