What is a Half-Commission Man?
A half-commission man introduces potential clients to financial advisors in return for a cut of the commissions those earn from the new clients.
How Does a Half-Commission Man Work?
Let's say John Doe knows Jane Smith, who has a net worth of $40 million. At a cocktail party, she mentions that she is looking for a new . John knows many and tells Jane he is happy to vet some advisors for her and introduce her to his top picks.
John does the work, meeting with each broker. During those meetings, he cuts a deal whereby he gets a cut of the commissions a would earn from Jane if she becomes a client. Accordingly, Jane picks broker X and generates $15,000 in commissions for the broker, earning John $7,500.
Why Does a Half-Commission Man Matter?
Half-commission men earn a living by introducing clients to and , much like a dating service.