legal referral fees?

Feb 20, 2008

  1. thatdguy
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    What is the legal referral fee you can give to someone for sending business your way? Is it a $50 cap or $100 cap or is there NO cap, just as long as you aren't offering a "percentage" of the policy commission? Is it per state or overall a standard?

    I have 4 mortgage brokers who are going to send several hundred people my way each month and they are asking.
     
    thatdguy, Feb 20, 2008
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  2. Mr. Bill
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    Well, now, that's a very easy question to which I don't have a specific answer but I will tell you....don't focus on the dollars, per se. Mostly the mortgage brokers are looking for ways to pay for their own marketing, whether that be gas cards (as gifts), advertising, mailings, the like. You just don't want to be in a situation where you have written a check. No one will ever know if you gave them a gift certificate to the Olive Garden (heh heh).
     
    Mr. Bill, Feb 20, 2008
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  3. thatdguy
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    You can't necessarily write off a ton of different gift cards though?
    but gotcha on that! thanks
     
    thatdguy, Feb 20, 2008
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  4. Mr. Bill
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    I would say most people don't really want the money, they want what the money will do for them. Everyone in real estate is retracting right now, which means it's time for them to step up their marketing efforts. Great job on the referral pipeline, and best of success!
     
    Mr. Bill, Feb 20, 2008
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  5. Soaringagent
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    I think that there's a limit on how much you can write off. But not sure...
     
  6. Mr. Bill
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    If you're paying for marketing, that's a legit business expense. You just wouldn't be writing a check directly to the agent, you'd be writing it to the advertiser. I don't give tax advice but I no see no problemo.
     
    Mr. Bill, Feb 22, 2008
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  7. lanepro
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    lanepro New Member

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    It's all dependent on what state you're in. In Texas I know we can pay for referrals but not closed deals. So you would have to pay them for every client that calls. I am not sure if there is a cap on how much you can pay though.
     
    lanepro, Apr 1, 2008
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  8. bluemarlin08
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    Be carefull, mortgagebrokers need to be wary of giving out information that isn't approved by client, I went through this last year and there are some guidelines you need to be aware of.
     
  9. joshril
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    So far it sounds like a bunch of sketchy information that didn't really answer your questions.. lol
     
    joshril, Apr 1, 2008
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  10. Mr. Bill
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    How do you figure? Let's say we're talking about a mortgage broker who would like to spend money advertising in the local news(rag)? If the insurance agent pays for the ad (with an underlying agreement that business will be referred to the insurance agent) what's the problem? It's marketing dollars, period.
     
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