Referrals

[dgoldenz]

We always send people a note thanking them for their business and noting that their referrals are important and appreciated. Works pretty well without being overbearing.

 

[Guest]

thank you.

 

[Frank Stastny]

We always send people a note thanking them for their business and noting that their referrals are important and appreciated. Works pretty well without being overbearing.

Excellent! I do the same.

At the bottom of each piece of correspondence I send to my clients I add a PS. "If you know anyone else who I can help with their insurance needs I would appreciate it if you would give them my phone number."

I believe that good referrals are earned by staying in contact with clients and giving excellent service. Not just given because the agent asks for a list of a new clients ten most personal friends. Would you give a total stranger, especially an insurance agent, a list of your ten best friends? I sure wouldn't.

A good portion of the insurance I sell is through referrals. When I get a referral it is always a "true referral" not just a name and phone number of someone they may know. It almost always results in a sale. My client has told the person about me and recommended that they use me as their insurance agent.

That is a "true referral".

 

[dgoldenz]

I can say the average commission on a referral case is significantly higher than the average commission from an internet lead....but again, it comes down to great service, not begging and pleading for people to give up a list of names.

 

[bluemarlin08]

I have a guy that is not in the life business but comes across prospects that need life and he refers them to me and we split the commission. My question, assume this prospect refers me to a friend of his. Would you feel obligated to split this case with the aagent or not. We never discussed referrals, and I don't think he is entitled to anything, but I may not be objective. The agent is aware of this referral and the commission on the sale is substantial.

 

[dgoldenz]

I have a guy that is not in the life business but comes across prospects that need life and he refers them to me and we split the commission. My question, assume this prospect refers me to a friend of his. Would you feel obligated to split this case with the aagent or not. We never discussed referrals, and I don't think he is entitled to anything, but I may not be objective. The agent is aware of this referral and the commission on the sale is substantial.

If you want to keep getting referrals, I'd give him the split. Otherwise he might give them to somebody who will give him the split on a referral.

 

[scagnt83]

Thats a tough one... a bit of a grey area.

There are two trains of thought on this:

One:
You are the one who put in the work and had the skill to generate the referral.

Two:
You never would have been in the position to generate that referral without the first one from your buddy...

I would think that the fair thing would be to compensate him in some shape or fashion.
Since he is receiving 50% for the initial referral already. I would say that 10%-20% would be fair for any referrals that come from his initial referral.

The MDRT commission split chart says:
20% for the Referral
20% for the Data (fact finding)
20% for the Case Design
20% for the Sale
20% for future servicing


I have always found this to be a fairly good breakdown to at least use for a reference point...

 

[Brandon Lewis]

If you want to keep getting referrals, I'd give him the split. Otherwise he might give them to somebody who will give him the split on a referral.

That's a good point. You may also want to simply ask him. But if you just give him the split, you will only improve your referral relationship with him.

 

[HarryRenard]

Pigs get fatter, Hogs get slaughtered. It really is that simple.

Like DG said if you want to keep getting the refferrals pay up, 50% of something is better then 100% of nothing.

 

[Brandon Lewis]

Like DG said if you want to keep getting the refferrals pay up, 50% of something is better then 100% of nothing.

Exactly! Look at it like an investment. Look at this long-term. This guy could be worth thousands or tens of thousands of commissions for you. You don't want to sacrifice losing this referral source.

I think you already knew what to do. You just needed some encouragement.