Refferal Fees

[lukeedin]

I am wondering if it is legal to do construction work for a homeowner, then pay them a referral fee if they reffer someone else to the construction compay and they get work done also? This is in Wisconsin.

 

[Tayla]

For a licensed business operating in state, referrals are not illegal per se. Its how you manage the referral fee program that can be sketchy. Be clear from the start how the program works. Keep a clear account on your books. Pay in a timely manner if the business/residence followed the guidelines accordingly. 99% of referrals are based on the stipulation that the new client signs on for the service/contract before issuance of referral pay is commenced.