Selling your small or midsize business is one of the most high-stakes decisions you’ll make. This is why understanding the importance of broker references is essential. Choosing the wrong broker can lead to costly delays, compliance issues, and missed cost-saving opportunities.
References go beyond marketing language. They show how one broker actually performs under pressure, manages timelines, supports the enrollment process, and communicates during challenges.
This article explains how broker references reveal a broker’s track record, uncover hidden risks, and help you make informed decisions that align with your company’s goals and unique challenges.
What Are Broker References?
Broker references are a direct way to evaluate how a broker has performed for past clients. They help you verify claims and gain access to valuable insights based on real-world experiences. In high-stakes sales, the importance of broker references lies in their ability to confirm whether a broker consistently acts in your interest, supports employee benefits programs, and aligns with your company’s goals.
Definition and Purpose
A broker reference is a past client who agrees to speak candidly about their experience. These references help you assess the broker’s important role in past deals, such as handling paperwork, managing buyer interest, and delivering tailored solutions under pressure. Speaking to them allows you to ask key questions and get a better picture of the broker’s communication style, enrollment process, and ability to reduce costs without cutting corners.
References are especially useful when reviewing how a benefits broker approached benefits strategy and supported employee assistance programs. Their feedback often reflects how brokers designed a compliant benefits program, created competitive benefits packages, and identified cost-saving opportunities that positively impacted the deal’s outcome.
The Difference Between Testimonials and References
Testimonials may sound convincing, but they’re often curated and used as part of a broader image-building strategy. In industries like brokerage, where public trust can be fragile due to misinformation or past misconduct, relying on testimonials alone may create a false sense of credibility. These statements typically highlight success stories and downplay or omit setbacks, delays, or client concerns. They can support employer branding but don’t always reflect how the broker performs under pressure.
References, by contrast, provide more grounded and specific feedback. They come from real clients with firsthand experience of the broker’s services and are not pre-filtered to support a marketing narrative. These conversations allow you to ask follow-up questions, understand how the broker managed complex deal aspects like plan design or benefits packages, and assess their ability to maintain strong relationships through challenging negotiations.
As shown in research on the impact of financial literacy and communication strategies in brokerage image-building, relying solely on testimonials may not be enough to support informed decision-making. Speaking directly with references gives you the depth and detail needed to evaluate whether a broker’s expertise aligns with your company’s specific goals and expectations.
The Value of Real-World Insights
Talking to references gives you a clearer view of how a broker handles real challenges. Instead of relying on surface-level claims, you learn how they responded to issues, supported employee benefits, and adapted to your industry’s needs.
Unfiltered Perspectives on Day-to-Day Performance
A strong reference offers valuable insights you won’t find in pitch materials. These firsthand accounts reveal how the broker handles day-to-day responsibilities like benefits management, buyer outreach, and timelines. They’re equally important for understanding how well the broker adapts to your industry, employee demographics, and compliance expectations.
Here are common examples of what you might learn from these reference calls:
- How the broker maintained consistent information flow and clear updates throughout the enrollment process
- Whether the broker provided educational materials to support informed decision-making
- How the broker’s benefits management strategy adapted to the company’s goals and employee needs
- If the broker helped adjust timelines or plan design to fit unexpected challenges
- How the broker acted during pressure points, such as delays, cost negotiations, or compliance checks
- The level of support given to clients from different industries or with unique benefits program requirements
- Whether the broker followed best practices for communicating with key stakeholders and reducing last-minute surprises
These real-world details help you understand the broker’s working style and their ability to build strong relationships and deliver lasting value.
Examples: Dealing With Paperwork Delays, Negotiation Issues
References often reveal how brokers handle pressure when deals slow down. You may hear about paperwork delays, missed steps with insurance carriers, or gaps in compliance. One example might involve a stalled deal where the broker stepped in to clarify benefits program terms or helped buyers understand how the plan complies with applicable employment laws or financial disclosure standards relevant to the transaction.
In another case, a seller might explain how their broker’s negotiation strategy transformed a weak offer into a competitive benefits package that appealed to top talent. These examples show how committed brokers act with focus, provide effective support, and turn complex challenges into successful outcomes for their clients.
How References Reveal Hidden Risks
References don’t just highlight strengths. They also expose patterns that could hurt your sale. Issues like poor communication, vague timelines, or lack of clarity in benefits strategy can quietly derail deals.
Identifying Communication Breakdowns
When a broker fails to answer questions clearly or delays updates, deals lose momentum. References help uncover whether a broker consistently misses calls, skips meetings, or fails to follow through on promised services. These behaviors may seem minor, but they often lead to larger issues during sensitive stages like the enrollment process or compliance reviews.
A reference might recall how the broker failed to explain costs tied to a benefits package or struggled to align with employee assistance programs involved in the company’s deal. These breakdowns create friction, reduce trust, and signal poor alignment with your company’s goals.
These issues mirror findings from research on the dynamics of brokerage in problem-solving networks, which show that the effectiveness of brokers is closely tied to how they manage communication relationships in the short term. A broker’s ability to serve as a reliable communication bridge, especially during high-stakes or shifting situations, can directly impact deal progress and outcomes, even if the effect is limited to the current phase of the process.
Spotting Marketing and Follow-Through Shortcomings
Strong brokers understand that a benefits strategy is not separate from the sale; it’s part of delivering full service. Reference feedback often reveals when a broker failed to follow through after initial promises. These conversations help uncover issues in plan design, outreach, and benefits broker performance that directly affect outcomes.
Here are some of the common shortcomings sellers have reported:
- The broker focused heavily on marketing claims but didn’t follow through during buyer outreach
- They failed to adjust the benefits program or plan design to fit the company’s employee demographics
- The broker lacked access to competitive insurance carriers, limiting buyer options and deal appeal
- There was no effort to align the benefits broker strategy with industry trends or the company’s goals
- Key updates were missed or delayed, affecting how the benefits program complies with regulations from the Securities and Exchange Commission
- The broker offered generic services without tailoring the approach to specific challenges, sectors, or deal sizes
- Follow-up efforts were weak, resulting in poor communication, missed timelines, or buyer drop-off
These insights help you identify weak spots early so you can avoid brokers who may not be equipped to manage all aspects of the sale with consistency and care.
Using References to Build Confidence
Good references don’t just help you spot red flags. They also confirm when a broker consistently delivers value. If multiple references praise the same aspects of a broker’s service, it suggests the broker is reliable and results-driven.
Consistency Across Multiple References
One strong review is helpful. Three or four that echo similar praise shows a pattern. If several clients describe exceptional service, consistent support, and attention to compliance requirements, you’re likely dealing with a licensed professional who takes the broker role seriously.
Look for repeated mentions of benefits such as improved plan design, strategic use of data analytics, or adjustments that previous clients said helped manage costs while preserving service quality. These patterns show that the broker understands your industry and can adapt to unique challenges.
Examples of Positive Patterns to Watch For
Sellers may highlight how their broker provided detailed educational materials, acted as a committed advisor, and adjusted the benefits program to meet buyer needs. One client might share how the broker customized a benefits package that complied with all current regulations and even offered support with employee benefits programs after the close.
Another reference may recall how the broker’s research team used data analytics to target buyers with matching interests and needs. These examples point to a broker with experience, resources, and a clear focus on solutions, not just selling.
When Reference Feedback Signals Caution
Some feedback raises real concerns. Reference calls reveal warning signs that may not show up in the early stages of your research. A pattern of vague answers, broken promises, or inconsistent results may point to deeper issues with the broker’s practices or approach.
Red Flags: Broken Promises, Vague Explanations
When speaking with references, pay close attention to signs that the broker failed to deliver on key promises. These red flags often point to deeper issues in knowledge, execution, and overall reliability. Since the broker role plays a pivotal part in your sale, even small missteps can affect employee benefits, plan design, and compliance with current regulations.
Watch for these common warning signs:
- The broker promised access to top buyers or key data sources, but didn’t follow through
- They avoided explaining their fees or failed to outline a clear benefits program
- The broker skipped or delayed updates, creating gaps in communication and damaging buyer relationships
- They showed limited understanding of how a benefits program complies with federal or exchange commission standards
- The broker failed to act on client concerns or adjust services to meet your company’s goals
- Costs increased unexpectedly due to poor planning or a lack of transparency
- They showed little focus on long-term value or solutions tailored to specific client needs
Each of these signals could indicate a lack of commitment, poor practices, or limited expertise. None of these are qualities you want in a partner guiding one of your most important business decisions.
What Mixed Reviews Can Suggest About a Broker
Mixed feedback doesn’t always mean a broker is unqualified, but it does highlight gaps that may affect your sale. These inconsistencies often reveal how the broker handled services like plan design, compliance, and support for employee benefits programs across different industries or client types.
Use reference calls to spot the following patterns:
- One client may highlight strong enrollment support, while another points out poor follow-through or unclear plan design
- The broker showed expertise in one industry but struggled to apply that knowledge to a different sector
- There were inconsistencies in how the broker acted on client concerns or adjusted to company-specific goals
- Some clients noted a lack of access to reliable data sources or failure to comply with employment, tax, or relevant local business sale regulations
- Feedback suggested a weak benefits strategy or limited support for benefits brokers managing employee assistance programs
- The broker delivered value for certain clients but couldn’t maintain consistent performance across multiple deals
- Relationships with clients varied; some felt well-supported, while others reported poor communication and rising costs
These insights help you assess whether the broker has the experience, focus, and informed approach needed to manage your deal with confidence and care.
What to Do After Gathering Reference Insights
After speaking with references, you should have a better understanding of each broker’s strengths and gaps. Use that knowledge to make informed choices and refine your list of potential brokers. This part of the process plays a key role in protecting your company’s goals and finding a trusted advisor.
Comparing Brokers Based on Responses
Start by identifying patterns in how brokers responded to challenges, supported compliance with regulations, and managed the benefits program. Give weight to those who clearly understood employee benefits, provided tailored solutions, and demonstrated commitment to long-term value.
Look for brokers who offer informed answers, adapt plan design to fit employee demographics, and use their expertise to guide decisions. Those with access to better data, stronger benefits packages, and real support during negotiations often make the most positive impact.
Deciding Which Brokers Progress to Final Interviews
Focus on brokers who understand your company’s needs, not just those who give polished presentations. A strong candidate will offer specific services that match your deal’s requirements and back their claims with results from past clients.
The best brokers are committed, proactive, and knowledgeable. Their actions reflect a deep understanding of the broker role, along with the ability to support employee assistance programs, manage relationships, and reduce unnecessary costs during the process.
Updating Your Broker Selection Scorecard
Now is the time to apply your research to a structured scoring tool. Use your broker scorecard or deal comparison matrix to rate brokers based on communication, plan design, benefits strategy, and how their services align with your company’s goals.
This approach helps identify top talent, improve investment decisions, and maintain focus on what truly matters. A clear process removes guesswork and keeps your benefits management plan on track—from first contact to final selection.
Make Smarter Broker Choices With Real Client Feedback
Broker references give you access to real-world data that supports smarter, more confident decisions. They reveal how one broker performed under pressure, managed employee benefits programs, met compliance requirements, and delivered results aligned with the company’s goals.
These conversations help confirm a broker’s proven track record, uncover cost-saving opportunities, and flag potential mismatches early.
Before signing an agreement, take time to call multiple references, ask direct questions, and compare what you hear using your broker selection scorecard. This simple step reduces risk, protects your investment, and positions you to choose a broker who aligns with your goals and has supported other clients from start to close.
Frequently Asked Questions
How many broker references should I request?
Ask for at least three broker references to compare performance, confirm a proven track record, and reveal consistent service patterns.
What questions reveal a broker’s true strengths and weaknesses?
Ask about communication, benefits management, negotiation skills, and how well the broker aligned with the company’s goals and compliance requirements.
Is it okay to ask about negative experiences with a broker?
Yes, asking about challenges helps uncover how the broker handled unique situations, supported clients, and adjusted their benefits strategy.
Can I decline to contact a broker’s reference?
You can, but skipping references increases the risk of missing issues tied to plan design, enrollment process delays, or poor follow-through.
What’s the biggest red flag in a reference check?
The biggest red flag is vague feedback or refusal to answer questions about the broker’s services, costs, or compliance knowledge.
References
- Haromaini, N., & Pudjoprastyono, H. (2025, June 17). Strategi peningkatan citra dan efektivitas rekrutmen pada industri pialang PT. Victory Internasional Futures [Image enhancement and effective recruitment strategies in the brokerage industry PT. Victory International Futures]. Jati Emas, 9(3). https://doi.org/10.12345/je.v9i3.291
- Nakajima, K., Tsuru, T., & Uehara, K. (2024). The impact of brokerage in a communication network on productivity: Evidence from sensor data. Connections, 44(1). https://doi.org/10.21307/connections-2019.030
