D
desert boy
Guest
How many realtors or mortgage people do you have that send you referrals?
And what do you give them in exchange?
And what do you give them in exchange?
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Re: Coi
5 or 6 on the regular. 10 to 15 total. I don't give them anything monetary in exchange just our good service.
5 or 6 on the regular. 10 to 15 total. I don't give them anything monetary in exchange just our good service.
Re: Coi
Is it illegal to compensate someone for referrals? I was under the impression that it was, but may be wrong and it may be state to state. I was just thinking that they had to be licensed appropriately to get paid for referrals.
To answer the question, maybe 3 or 4 mortgage brokers and 2 or 3 realtors. I am fairly new to the area that I work in and haven't had an opportunity to meet that many people, but I plan on increasing those numbers. I don't give any of them anything except a big thank you.
I also have a few agents in the area that refer to me on a regular basis if they don't have a market for a risk. State Farm is getting rid of a lot of policyholders in my area and I have made friends with a few of the agents near by and they occasionally send people my way.
Is it illegal to compensate someone for referrals? I was under the impression that it was, but may be wrong and it may be state to state. I was just thinking that they had to be licensed appropriately to get paid for referrals.
To answer the question, maybe 3 or 4 mortgage brokers and 2 or 3 realtors. I am fairly new to the area that I work in and haven't had an opportunity to meet that many people, but I plan on increasing those numbers. I don't give any of them anything except a big thank you.
I also have a few agents in the area that refer to me on a regular basis if they don't have a market for a risk. State Farm is getting rid of a lot of policyholders in my area and I have made friends with a few of the agents near by and they occasionally send people my way.
- Thread starter
- #4
D
desert boy
Guest
Josh,
You need to learn the laws of your state!
In my state, you can more or less pay a referral anything, we have a limit ($10) that we can give a CLIENT or it is considered rebating.
You need to learn the laws of your state!
In my state, you can more or less pay a referral anything, we have a limit ($10) that we can give a CLIENT or it is considered rebating.
Don't you think that's why I asked? Do you know EVERY law? You might but not everyone memorized them. I'm not going to pay someone for a referral either way so that law doesn't mean a whole lot to me anyway. If you make a sale off of the referral could it then be considered sharing commission? In my state it is illegal to share commission with someone who is unlicensed. I was told by an instructor for the 2-20 class that we are not allowed to compensate for referals, but I know agents who do it. Which is why I posed the question. Who is right? No need to get all froggy because someone didn't memorize every law!
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- 15,041
As always, it is state specific...
In general, if you give the same compensation for every referral, whether a sale happens or not, you should be in the clear.
That what I was thinking, however, a friend of mine, who just so happens to be an instructor for the 2-20 tells me its not a good idea because it can look like you are sharing the commission.
- 15,041
Could be some quirk of Florida law. It would be legal here, as long as you did the same for the buyers and non-buyers. Also, I believe the IRS will only allow you to deduct up to $25 for small gifts such as this (I don't pay for referrals, so not 100% sure on this).
Also, there are other issues. Someone might send you every warm body they can just to get a referral fee. You might treat some differently than others, and open yourself up to claims of discrimination, or sharing commissions. Also, if the referrer is a client, it might be considered rebating.
- Thread starter
- #9
D
desert boy
Guest
my state we can pay a referral whatever we want.
I have heard of agents telling people that if they send them 10 homeowners, they send them to Hawaii.
I would never do that.
I send a gift card and after a few good closing, say i write 5 clients from them, I will take them and their spouse out to dinner, I want them to keep sending me people and be their #1 person they send people to, Plus, its good to make friends with these people.
I have heard of agents telling people that if they send them 10 homeowners, they send them to Hawaii.
I would never do that.
I send a gift card and after a few good closing, say i write 5 clients from them, I will take them and their spouse out to dinner, I want them to keep sending me people and be their #1 person they send people to, Plus, its good to make friends with these people.
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