What Is an Endorsed Local Provider (ELP)?

Dave Ramsey is a well-known personal finance celebrity. He has along-running radio show (also, more recently a video podcast), multiple best-selling books, online tools, educational courses and a large following. Ramsey’s organization offers the endorsed local provider (ELP) designation to vetted financial professionals to help them connect to people looking for personal financial services.

A financial advisor can provide guidance for all your real estate and investment needs.

Who Is Dave Ramsey?

Most people know Ramsey for his famous “snowball plan” to get out of debt. This approach has a debt-burdened consumer pay off his or her smallest non-mortgage debt first. Then they add the amount that was going to that debt to the next-largest debt payment, and so on. Eventually they’ll pay off the balances on all credit cards, auto loans, and other debts.

Ramsey also recommends a more comprehensive “baby steps” plan. It calls for creating an emergency fund, investing for retirement and college expenses, paying home mortgages off early and making charitable donations.

Services an Endorsed Local Provider (ELP) Provides

The ELP designation spans three distinct areas of personal finance: insurance, real estate and tax services. Rather than covering a single planning discipline in depth, the program connects consumers with professionals across these categories. All of whom have agreed to follow Dave Ramsey’s financial philosophy of debt elimination, disciplined saving, and straightforward insurance coverage. This makes the ELP program broader in reach but narrower than specialized credentials that require advanced coursework or testing.

What a client receives from an ELP depends on their matched provider. An insurance ELP may help a client shop for affordable term life, property and casualty, health or long-term care coverage. A real estate ELP could assist with buying or selling a home, with an emphasis on quick follow-up and responsiveness. A tax ELP, typically a CPA or enrolled agent, may prepare individual or small business tax returns and offer guidance on tax-related financial decisions. In each case, the ELP should deliver services that align with Ramsey’s baby steps framework and broader financial principles.

Who Needs an ELP?

ELPs tend to address straightforward consumer needs rather than complex financial planning. A person getting out of debt who needs new insurance policies, for example, fits the typical ELP client profile. So does a first-time homebuyer following Ramsey’s guidelines on how much house to afford, or a taxpayer looking for a local professional who can handle a standard return without upselling unnecessary services.

The ELP designation helps when you need new insurance, local real estate agents, or tax assistance during filing season. Because Ramsey’s organization vets the ELPs, consumers theoretically have an easier time finding a quality match.

It is important to note that the ELP designation does not cover investment advice, retirement planning or wealth management. Ramsey maintains a separate program called SmartVestor for professionals who provide investment guidance, and he does not formally endorse those financial advisors in the same way he does ELPs. Consumers with needs beyond insurance, real estate or taxes may want to seek additional credentials when evaluating a financial professional.

How Much Does an Endorsed Local Provider (ELP) Cost?

The cost depends on the type of service involved rather than by the ELP designation itself. Insurance ELPs earn commissions from the policies they sell, meaning the client typically does not pay a separate advisory fee. Real estate ELPs earn the standard real estate commissions built into most transactions. Tax ELPs pricing that can vary based on the complexity of the return and the provider’s local market rates.

Because ELPs operate within commission-based and fee-for-service models, the cost isn’t always clear. Insurance commissions, for instance, are embedded in the premium rather than listed as a separate line item. Real estate commissions are typically a percentage of the sale price. These may be negotiable depending on the market and the agent.

Before working with an ELP, consumers should ask how the provider is compensated for each specific service. Referral fees or lead costs could affect the recommendations they receive, the quoted price, and whether additional charges apply. Getting clear answers helps consumers determine whether the ELP arrangement offers good value for their particular situation.

Cost of Being an ELP

One distinction worth understanding is that ELPs also pay fees to Ramsey’s organization for leads and referrals. Online reports indicate that real estate ELPs may pay an upfront fee of around $3,000. Recurring fees vary by market. ELPs pay a monthly charge between $400-$900, along with a 28-30% referral fee on any sales generated through the program. Insurance ELPs reportedly pay between $60 and $100 per lead. While these costs are borne by the provider rather than the client directly, they could influence the pricing or service approach of individual ELPs. ^{1 2}

Because ELPs do not register as investment advisers, most will not have a Form ADV Part 2. However, consumers can still research an ELP’s background through other channels. Insurance agents can be verified through state insurance department databases. You can verify real estate agents through state licensing boards, and CPAs or enrolled agents through the IRS as well. Any financial professional registered as an investment adviser has a Form ADV Part 2. Available through the SEC’s Investment Adviser Public Disclosure database, these forms outline compensation methods, conflicts of interest and services provided ³ .

ELP Certification Requirements

Ramsey Solutions, the organization he founded in 1992, runs the ELP program. The company is based in Nashville and advocates a biblically-based, commonsense approach to debt reduction, saving money, insurance and other aspects of personal finance.

Ramsey created the ELP program early in his career dispensing personal financial advice. It is a paid referral program open to nearly any financial professional who wants to join and will pay its fees. In return, the financial professionals receive promotion via Ramsey’s media outlets and also get leads for new business through his website.

Types of ELPs

There are several types of ELPs. The difference depends on the financial products the ELP offers. Here are the types:

• Insurance
• Taxes
• Real Estate

Ramsey doesn’t require ELPs to take any courses or pass any tests except to be in good standing with professional organizations. ELP applicants also have to promise to provide good customer service and agree to follow the Ramsey personal finance plan and philosophy. The basics of the plan are outlined in his baby steps formula. Another key element of Ramsey’s approach is a strong preference for term life insurance over whole life insurance.

Real estate ELPs must have two years of experience and 10 transactions within the last 12 months. They also need 50 lifetime transactions or in the top 10% of their market. It targets the tax service ELP designation at certified public accountants and enrolled agents with at least two years experience. who focus on individuals and small businesses. Insurance ELPs are subdivided based on the type of coverage they sell. ELPs may be specialists in property and casualty insurance, health insurance, and long-term care insurance. Open to independent insurance brokers with two years of experience. ⁴

Beyond these standards, the only requirement of an ELP is to pay the fee to Ramsey’s organization. The company does not disclose the cost to become an ELP. Online reviews and user comments indicate that some ELPs pay upfront to get the exclusive rights to their local markets. Real estate agents, for example, pay $3,000 plus a monthly fee around $500.

ELPs also pay Ramsey for leads and referrals. Insurance agents pay for leads at rates varying from $60 to $100. Real estate agents pay a 28% referral fee to Ramsey for any sales resulting from leads acquired through the ELP program.

ELP Certificate Holder Jobs

ELPs are insurance agents and brokers and tax and accounting professionals. The ELP designation primarily serves marketing purposes, as Ramsey guides his legion of fans to use the program to find financial service providers. ELP members get coaching from Ramsey’s staff about how to provide good customer service. And consumers who use the service are urged to provide feedback, including complaints.

If an ELP gets enough bad reviews, the Ramsey organization says it will stop giving them leads and evict them from the program.

Comparable Certifications

Many financial professionals use advertising and lead-generation programs that look less like certifications and more like pure marketing initiatives. They include these:

Zillow Premier Agent is a program that enables real estate agents to pay to advertise their brands on the Zillow and Trulia real estate sites. This can give them a marketing advantage over agents who rely only on the free profiles. There aren’t any requirements of Zillow Premier agents beyond ability to pay the fees, which vary by real estate market.

QuoteWizard is for insurance agents. When consumers visit the site to get information about auto, home, health, life and other insurance, their contact and other information is passed on to agents who pay for the leads.

Ramsay has another designation, SmartVestor, for financial professionals who dispense investment advice. To get the SmartVestor tag, as with the ELP designation, advisors have to pass a vetting process and pay a fee. In return, Ramsey provides leads. One difference is that Ramsey doesn’t actually endorse SmartVestors, although he does urge listeners and visitors to his website to use the program to find investment advisors.

Bottom Line

ELPs are providers of insurance, real estate and tax services who have been endorsed by financial celebrity Dave Ramsey. ELPs don’t have to do much to qualify for the designation and start receiving referrals other than agree to follow his financial planning principles and pay the fees. However, ELPs who don’t provide service and generate lots of complaints may be removed from the program. Keep in mind, too, that Ramsey’s organization does not endorse ELPs as investment advisors.

Personal Finance Tips

• If you are looking for help with debts, saving, investing, retirement planning or other financial matters, consider working with an experienced financial advisor. Finding one doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• It’s important to get a clear picture of what a particular debt will actually cost. A personal loan calculator can tell you how much total interest you will pay over the life of a loan.

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