How Long Would You Pay Commissions?
- Thread starter sdinsure4life
- Start date
Only as long as I wanted any future referrals.
glgamerica
Super Genius
- 100
Are you the agent of record or is your buddy?
jonnroker1
New Member
- 5
Hi,
I have a question related to this. An accountant referred a group to me 7 years ago and i've been paying him ever since. All he did was make the introduction and has not been involved since. Up until last year, i was paying him 50% of the commission every month (he is licensed). However, i made the decision to cut it down to 25%. Also, in 7 years, he's never referred anyone else. Would you keep paying? The group is a lot of work.
I have a question related to this. An accountant referred a group to me 7 years ago and i've been paying him ever since. All he did was make the introduction and has not been involved since. Up until last year, i was paying him 50% of the commission every month (he is licensed). However, i made the decision to cut it down to 25%. Also, in 7 years, he's never referred anyone else. Would you keep paying? The group is a lot of work.
What was your agreement? If you agreed on simply 50% without any time limits, work restrictions/expectations, additional referral requirements, etc., then I would pay 50%.
If you had any discussions then this might change my opinion. Also, I would ask about the reduction to 25%, was this done unilaterally? What did the accountant say about it?
jonnroker1
New Member
- 5
We never had any written agreement. My accountant, upon reviewing my books, calculated that overhead for my business (salaries, rent, everything) was 40%. That being said, it seemed insane to me to be sending out 50% when I was only making 10%. Thoughts? It was foolish to offer so much but I was just starting out and thought it made sense. That was before my agency grew along with my overhead.
My thought is that you are wrong. Written or not, you made a deal. My guess is that since you were new you were very thankful for the referral, the business and the revenue. You may want to consider going to the person who originally gave you the referral and discuss it with him/her and see if they would agree to a decrease.
One other thing to keep in mind, this is your reputation that you are playing with here. I do not know you, but from an arms length I have already seen 2 issues that would give me pause as it relates to your reputation. The first is your reply and telling me that there was nothing in writing...so what. The second is that you said you decreased the amount from 50% to 25% and it appears as though it was done without the other persons knowledge. I am not trying to demonize you just pointing out what I am seeing and thinking based on your post.
jonnroker1
New Member
- 5
good points. We discussed the decrease to 25% and he was fine with it.
You should have stated this earlier. This changes the discussion considerably.
jonnroker1
New Member
- 5
Ok, how does it change it. What are your thoughts?
