Let's say I have some advisors who are life/health licensed and they are willing to refer their ltc business to me instead of another broker. Can commissions simply be split,say 50/50, regardless of upline? Is there an industry standard or is it company specific? If the advisor has not placed any business in 6 months could I just put them under our agency? Finally what split seems to be the norm? I've written individual LTC for a few years but never on a split basis so any info is appreciated.
Splitting Commissions
- Thread starter kstein
- Start date
it depends upon the company.
some require that both agents be in the same hierarchy in order to split the case.
i suggest you get 100% of the production credit and you write the advisor a check for 50% of the fyc and you keep 100% of the renewals.
then you don't have to worry about hierarchies.
- Thread starter
- #3
how hard is it to write one check the same day you get the first year commission.
Very.
If they want the split, their name goes on the app. If they balk, they don't get a split.
And it is also why I shouldn't be a GA or recruit
If you mail the agent their commission, and your check does not bounce you will never get a call from an agent asking where their money is.
Gimmee a break.
- Thread starter
- #9
This is a pretty solid referral source so I want to make it as smooth as possible. I spoke to him and we just decided to split the agent commish 50/50 and we keep the rest. Easy peasy...assuming it gets issued.
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Also this really isn't an agent/agent split, as I could see that being trouble. Thank you everyone for the advice, another forum success!
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Also this really isn't an agent/agent split, as I could see that being trouble. Thank you everyone for the advice, another forum success!
One problem with cutting a check is if the policy is canceled after a few months. Now you're in the hole and trying to collect from someone who may or may not be able to cut a check back.
This is as much a question as it's a statement because I'm in the same situation wondering how to handle it.
This is as much a question as it's a statement because I'm in the same situation wondering how to handle it.
