Referral/Marketing fee legality

May 23, 2007

Tags:
  1. zackarychapple
    Offline

    zackarychapple Expert

    Posts:
    71
    Likes Received:
    0
    I was curious if anyone knew how much we can give to another company or someone who send us referrals. If it is a marketing fee or a referral fee, what is the limit of the law and where can I find this information?
     
  2. Dave020
    Offline

    Dave020 Super Moderator Moderator

    Posts:
    3,363
    Likes Received:
    54
    State:
    California
    It may vary by state, but usually the limit is about $25.
     
    Dave020, May 23, 2007
    #2
  3. David C
    Offline

    David C Guru

    Posts:
    480
    Likes Received:
    2
    Just my opinion...

    I cannot imagine a situation where I'd want to pay someone money for a referral. IMO it's not very professional. That being said I have given a bottle of nice wine to someone who has been a steady source of referrals through the years.

    I've also seen another agent across the room in a restaurant and paid his bill because he CONSISTENTLY refers his health business to me.

    To me it would cheapen the value of my services to pay money for referrals.
     
    David C, May 23, 2007
    #3
  4. Frank Stastny
    Offline

    Frank Stastny Guru

    Posts:
    7,069
    Likes Received:
    22
    State:
    Florida
    I agree with David.

    If you give money there is a chance that they aren't going to think it is enough and or expect it every time.

    I have given them a gift certificate to their favorite place to eat lunch. To sweet little old ladies, I may send a small bouquet of flowers.

    I sell in the senior market in rural areas. There aren't a really lot of high priced places to eat in little towns. Even if there were my clients who are on a "fixed income" aren't going to eat there anyway.

    I have even taken a picture of their place, flower bed, etc, printed it out and framed it for them. Especially if they are very proud of their flowers or the way their place looks.

    It's the little things in life that count, those things that are "special", not how much money you give them. At least in the senior market.
     
  5. David C
    Offline

    David C Guru

    Posts:
    480
    Likes Received:
    2
    Frank, Great ideas about the photos/flowers. They'll remember that 20 years.
     
    David C, May 24, 2007
    #5
  6. salpro22
    Offline

    salpro22 Guru

    Posts:
    1,966
    Likes Received:
    30
    State:
    Texas

    Check with your local DOI regarding what they allow. I am allowed to provide a gift for a whopping $10 here in MD. I prefer to offer leads and/or gift certificates instead of money.
     
    salpro22, May 24, 2007
    #6
  7. TheSalesWolf
    Offline

    TheSalesWolf Super Genius

    Posts:
    218
    Likes Received:
    0
    I give out $25 gift cards to Target or Walmart to my clients all the time.
    I let them know to send me everyone they know that may or may not need insurance. IF they sign up for insurance that client gets a $25 gift card.

    It works and is a great incentive for them.
     
  8. Mr. Bill
    Offline

    Mr. Bill Guru

    Posts:
    2,045
    Likes Received:
    10
    I met a World Financial Group rep yesterday who pays $50 for referrals.

    What do you think about that?
     
    Mr. Bill, May 24, 2007
    #8
  9. salpro22
    Offline

    salpro22 Guru

    Posts:
    1,966
    Likes Received:
    30
    State:
    Texas
    I think gas cards are "in" during the summer.
     
    salpro22, May 24, 2007
    #9
  10. Newby
    Offline

    Newby Guru

    Posts:
    14,343
    Likes Received:
    1,384
    State:
    Indiana
    I use $25 restaurant gift certificates or gas cards. I give them out whether or not a sale is made. But I ask the referrer to actually call the person they are referring for me and introduce me and hand the phone over to me.
     
    Newby, May 24, 2007
    #10
Loading...