What Is An Introduction Worth?

In the insurance brokerage business, an introduction can be worth thousands, and even millions of dollars, costing the recipient the same amount.

“Let me put you in touch with ABC Insurance Company. They have a great product you can use in your brokerage. I already told them that you would be calling” chortled John Brown, local insurance guru in Buffalo Breath, Montana.

What happened is John has “covered his base” by cutting a deal with ABC Insurance Company prior to making the introduction. “Hey Bruce, this is John. I’ve got an insurance agent down in Little Rabbit, Arkansas that I can send your way. Has a big case that I think he can place with you. I need a cut of the commission, ok?”

“Sure John, we will put him under you in our system and for the rest of his life, on all sales he makes with us, you will get a cut of the commissions. He will never know what you are making. What is his name so I can log him in?””

“Great, but what if this guy tries to go around me and cut me out?”

“No problem, we will protect you.”

John now has an annuity. From that point on, on every sale his referral generates, John will be paid. Life is good.

Editor’s Note: If you need a PBM that offers a completely transparent, pass-through contract, that will save your client big bucks guaranteed, contact us during regular business hours.

 

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