A unique referral based program

A unique referral based program

Omaha, NE · Member since 2016 · 1 post · 0 votes

I am in contact with an insurance brokerage that provides insurance products to doctors just out of medical school and also helps them to negotiate job offers. Later on, they will sell them financial planning. They work nationally, so their doctor clients land in cities all over the US. Because the doctors are about to see a huge increase in their careers financially, many will be in the market to buy their first home, normally $400,000 or above, depending on location. This insurance broker would like me to use my license to refer out the leads. Now obviously, I don't get paid until a deal closes. But how can I structure these deals? The insurance brokerage cannot take a percentage of the commission because they are not licensed. But, they want the lion's share of the money since they view my part as a sort of pass through. They plan to vet the agents in the other cities, so they see me as someone passing paperwork. It could be an income stream for me, so I am interested to give it a shot. I just don't know how to pay the insurance broker. It's hard to tell how many leads I'll start with, what percentage of them will close and in what time frame. A cost per lead model is not one that they favor, nor do I. It's too uncertain. We discussed hiring me on in some capacity so I am their employee, with the income flowing into me and I could then pay them. That doesn't seem right though.  Any creative ideas? Thanks in advance.  

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  • Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    5y

    1160000 insurance brokers in US, a competitive business. They make money not just on opening the deal but life long renewals. They cannot be paid a real estate or lender referral fee. You could set up some kind of networking situation in the state or states where agent is licensed. Have a Realtor for 100 mile area, a lender for the state, a home stager, a moving company... But here is the mix- each of those persons may already have a referral network and may have their own insurance person. How can you guarantee they don't pull away the client and send them to their own State Farm gal?

  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    I agree with Caroline. If they are not licensed, you can't pay them a fee. They need to get a license and then you can send them a referral fee, with a written agreement. Personally, it's probably not worth the time.

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