Pay for referrals

Jul 9, 2009 2:51 am

Do any of you IAs pay use solicitors to obtain referrals?  If not, why not?  If so, what do you pay?

Jul 9, 2009 3:20 am

I have seen .50% as an average. Some will split the fee 50/50. I breifly looked into this, then realized I couldn’t find any “true” solicitors in my area outside of the hedgefund world. Seems most of the 3rd party markerts want hedge fund business.

  Are you looking more at an attorney/cpa solictor or a 3PM?
Jul 9, 2009 4:08 am

I’m thinking in terms of other financial professionals (accountants, real estate agents) and non-pros as well.  The results of a web search for solicitor disclosure documents indicates a range between 20% and 70% of the advisers fee.