Working a CPA's Database

Sep 7, 2016

  1. jn8691mr
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    jn8691mr Super Genius

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    Looking to hook up with a CPA and call on his clients for annuitues, life, med supp etc ... So that this is a mutually beneficial relationship,I'm looking for ways to legally compensate him for access to his clients? Office space rental?
     
    Last edited: Sep 7, 2016
  2. Josh
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    Josh Retired Agent, Current List Broker

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    Have him get a license, easy.
     
    Josh, Sep 7, 2016
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  3. Tahoe Ray
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    Tahoe Ray Guru

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    Yes .
     
  4. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    DHK, Sep 7, 2016
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  5. Tahoe Ray
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    Tahoe Ray Guru

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    Which is cheaper and involves a buy in from the CPA?
     
  6. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    If it were me, I'd have the CPA either get licensed, or pay for the LLC. Either way, the CPA needs to have some skin in the game.
     
    DHK, Sep 8, 2016
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  7. Tahoe Ray
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    Tahoe Ray Guru

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    Your second option works too. I have see a few financial advisors do option one where it didn't pan out since they did everything.

    You're right that in the end, for most COI relationships, skin in the game is normally the barometer of success.

    I have 3 RIA firms that I met through a trade association who regularly refer me business with no quid pro quo.

    I'm currently looking for another 7 or so.....lol.
     
  8. AboutThatLife
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    AboutThatLife Guru

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    Thats the hardest part about this business. Everyone wants quid pro quo.
     
  9. jn8691mr
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    jn8691mr Super Genius

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    He doesn't have any interest in getting licensed ... I guess my question is aside from getting license and/or setting up an llc, is there any other legal options? Pay him for office space? Any other suggestions?
     
    jn8691mr, Sep 10, 2016
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  10. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Paying for office space would still have to be at market rates in your area. What would that be? $500 - $1,500 per month? Maybe more depending on the quality of the building?

    I wonder if you could call it a "marketing expense"? But that could get sketchy.
    - If you're paying for access, then you pay a set amount REGARDLESS of results.
    - If you're paying based on revenues generated, that's where you need licensing.

    But as I'm thinking about it, under such an arrangement, wouldn't the CPA have to disclose to his clients that he is sharing information with other people outside of his firm? Just as banks have to disclose it and give clients a chance to "opt-out".

    I'm sure I'm over-thinking this, but that would be a real concern if you're paying for access to the CPA's client database.

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    Of course, I wouldn't just want access to the database. I'd want a professional introduction - either in-person or with an introductory letter to the database BEFORE you call.

    Plus, I'd want appointments in the CPAs office with their clients.

    Based on this, I'd set up a tiered system for paying for access based on how much you're involving the CPA in the entire process.

    But without the CPAs endorsement and involvement, it's only as good as a cold-calling list.
     
    DHK, Sep 10, 2016
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