Discounts for Referrals

Originally Posted by realtor How do other Realtors do it without causing problems?

They probably aren't.

I work with a lot of Realtors in many different states--both as a personal sales coach and as a trainer for their companies or local realtor associations and I don't know of anyone who is actually paying others for being a "bird dog". This certainly doesn't mean it doesn't happen, just means they keep it very, very quiet and have, to date, been successful of keeping it under the table.

Not only is it a bad way of doing business in itself, but the consequences are far worse than the benefit of getting a few customers out of the deal.

On occasion you'll hear about someone getting caught. Just not worth doing--for the potential new business, for the lost sleep, for the eventual consquences.

Originally Posted by AZBroker Most if not all states have rules regarding compensation and unlicensed individuals. Routinely compensating bird dogs or clients for referrals can land you in hot water with your licensing body.

Good point. And the point is make sure you understand any
legal and ethical disclosures or constraints you should
be following.