How do Referral Fees between Producers work?

[Tristan Bills]

It's my understanding that a licensed producer can pay a referral fee to another licensed producer as long as they both have the line of authority necessary to accept a commission for the policy being paid. I'm sure there may be some state-specific nuances, but that's the quick answer, right?

That said, how do referral fees work? Is there a standard agreement somewhere or a sample of one I could use? My carriers are turning away good business at the moment and I'd love to find a way to ensure that the client is taken care of by referring them to another trusted producer, and I admittedly would like to earn a little revenue while doing so.

 

[goillini52]

Is there a standard agreement somewhere or a sample of one I could use? .

No written agreements, just a secret handshake.

 

[Markthebroker]

No written agreements, just a secret handshake.

Oh yeah dude, you're not getting anywhere in this industry if you don't know the secret handshake.