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alliedib
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Hi Amy,

I have seen agreements from anywhere between 20-50% – depending on the type of referral they are providing you (obviously the more interaction they provide the higher the %).

If you provide an ongoing service (where the customer is coming back to you independently of the referral) you might want to offer a lower level of % as a trail. As an example – If a member of a local organisation takes out a policy with me the organisation gets 25% of the New Policy income followed by 10% of any additional income generated by the client ie. through renewals in Year 2 or policy changes (the %’s are just illustrative but you get the idea).

Just make sure that you don’t short-change yourself by giving them too much away- at the end of the day if you are giving your referrer a good % of your income you make less money – and the more attractive for them the more it will cost you (you end up doing a lot more work for only 70% – 80% return but you feel like you need to prioritise them due to the referral relationship)… Sometimes its easier to keep them informal but give them a food hamper / travel voucher or similar (depending on the size of the income they are generating for you) at the end of the year… win win!

Regards,

Mark