If you’re not diversifying your product line as an insurance agent, you’d better be dead serious about not just landing some industry referral partners but landing the RIGHT partners.
Some Agents will ignore and not sell certain lines of business only to watch clients leave them for an agency with a more comprehensive offering.
Others will find referral partners that offer products they don’t.. that ALSO sell what YOU sell… but they PROMISE they won’t cross sell YOUR referred client.
Sure…. You CAN go with the ones who say they won’t cross-sell your products, but promises are cheap… particularly from someone who also sees you as potential competition, may be in a tough financial season, or may not operate the most ethically.
The smarter move is to partner with people who don’t even play in your sandbox—because if they don’t offer what you do, there’s no way they can come in and swipe your clients. End of story.
Now, let’s talk about compensation. It’s not enough to have a referral partner who won’t steal your business; they’ve got to pay you what you’re worth, and referral fees? Those are for rookies. If you’re going to send business out, you need to be licensed in that line so you can get a real commission split, not just a small referral fee. Why take a fraction of what you could be earning? A license is your ticket to playing the full game and making sure you get what you deserve every time you send a deal across the table.
And here’s the kicker—it’s not just about you sending them business. The right referral partners should be sending you clients too. This isn’t a one-way street. Partners who don’t compete with you directly should have referrals to send back your way, strengthening your business while you do the same for them. It’s a mutual exchange of leads and commissions, not just you doing them a favor.
Also, let’s be real: every time you send a client to someone else, you’re betting on that partner treating your client like gold. Your reputation is on the line, so you better make sure that referral partner delivers. And more than just delivering for your clients, they need to make sure they’re playing fair with you. If they can’t compensate you the right way—ethically, legally, and in full—then it’s time to find a better partner. You shouldn’t be placing your reputation on the line for a rinky dink little gift card referral bonus.
Protect your sandbox.
The right partners won’t just keep their hands off your business; they’ll help grow it by sending clients your way, knowing they’re better off referring clients than trying to cross-sell into your space. That’s how you build trust, protect your commissions, and ensure long-term success—without constantly worrying about who’s eyeing your clients or your wallet. Keep it mutual, keep it smart, and make sure you’re getting what you’ve earned.