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are referral fees illegal?

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techhead

Junior Member
What is the name of your state? Texas

did not know where else to post this business question.

several people have told me they can bring me business if I will pay a referral fee. fee or anywhere from 3-10%. I have a headhunting / IT company and could really use the business.

these people do not work for the companies but have contacts inside them.
lunch buddies, college buddies, etc.

would this be illegal? if so, how could i structure it to be legal?
 


HomeGuru

Senior Member
techhead said:
What is the name of your state? Texas

did not know where else to post this business question.

several people have told me they can bring me business if I will pay a referral fee. fee or anywhere from 3-10%. I have a headhunting / IT company and could really use the business.

these people do not work for the companies but have contacts inside them.
lunch buddies, college buddies, etc.

would this be illegal? if so, how could i structure it to be legal?

**A: no it would not be illegal. Have you ever heard of marketing and business consultants?
 

techhead

Junior Member
yes, i have heard of them

HomeGuru said:
**A: no it would not be illegal. Have you ever heard of marketing and business consultants?
yes, i have heard of them. i happen to be one. i have also heard of kickbacks and conflict of interest. i guess that is what i'm getting at.

the brother of a ceo could influence the ceo to give me all their IT business if the brother gets 10%. would that be illegal? i know a real estate agent (Texas) can not give a part of his sales commission to a non-licensed person for assistance in arranging the transaction. at least it was that way 20yrs ago when i was a broker.

lets say there is a conflict of interest. when does a conflict of interest become actionable (criminal)?

thanks for your quick input. :)
 

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