What is the Split for a Referral?

[Coloradoskier]

My friend is in the auto business. And he plans to refer his client(s) to me. My question is: how much or what percentage should I give him out of a policy premium for his referral?

 

[Derrick]

You can't if he's not licensed. You'd have to compensate him on referrals. Basing his compensation on sales would make him an agent. You could get in a lot of trouble if you got caught. Like get your license revoked.

That being said, still doesn't mean you can't buy him a $25 gift card (or whatever your state limit is) every month or two. And perhaps have that coincidentally coincide with him giving you referrals.

 

[Coloradoskier]

Hi Derrick,
Thank you very much for your advice/suggestion. It is a wonderful idea to give my friend a gift card with some limit $. I am so glad that I asked.

 

[insurance1822]

tell him to screw himself & don't give him anything. he should refer people to you wtf