Leads Versus Referrals – Credit and Investments

Legal Disclaimer: The author(s) of this article are not attorney(s) and cannot give legal advice/nor should anything that is written herein be construed upon, nor relied upon, as legal advice (FLA Bar v Brumbaugh and FLA Bar v Sperry).

Leads Versus Referrals:

Some people are perplexed as to why Zillow (for years), has been legally referring people to realtors, and collecting monies, while not being licensed realtors (the same situation, for many other professions). While Federal Courts have routinely shot down the notion that somehow Licensed Professionals can’t pay for receiving referrals from Marketing efforts, luckily the courts established clear and concise common sense to the previous authoritarian control (since it has been ruled that marketing efforts have merit, value, and deserved to be compensated).

The Federal Courts did leave the States to allow the distinguishing definitions, between a “Lead” and a “Referral”. The vast definitions between the different States, is startling. Just like different state laws on divorce, guns, wearing motorcycle helmets, marijuana, gambling, etc…, these variances can be extreme. In some states (Nebraska for example) a referral is merely considered a family member or friend, and everything else is just considered to be a lead. This Nebraska definition is easy, and has common sense, and promotes more business for easy marketing. In some more highly conservative State definitions (biggest extreme example being Florida), a lead must be both blind, and the particulars of the service desired cannot be from “verbal conversations”. Meaning, that, the “Lead” until they are actually contacted by the vendor (they/the lead), for example; cannot know that they are being referred specifically, to the named firm of, “Jones and Smith Financial”, until after the firm contacts them, or, it becomes a “referral”. The second half of Florida’s conservative definition of this, is example, as “verbally speaking of the particulars” (they can legally check a box on the internet” but, before being contacted by the vendor, the introducer is allowed to know that the person needs tax lien negotiations, but may not “verbally” discuss the alleged amount owed, or likely time tables to remedy, and supposedly, cannot (as the interpretation appears to read) or to discuss if these liens are State, County, or Federal Tax Liens, etc…, and this rule can lead into completely being ludicrous/and non-sensical. Imagine not allowing the verbal discussing in a real estate lead – such as, is square footage a particular?

We inform and contractually tell our affiliates, to not violate the most conservative definitions if you enter the lead yourselves, and to check your state laws, or ask an active state attorney any legal questions.

****There is a possibility that any lead submitted, may or may not be worked in-house, and in some cases may be sent to a partnering vendor. We may introduce you to a partnering vendor, and, any and all actions, may or may not result in monies earned by us, or commissions paid to us, as a lead fee, in a partnering, or an affiliated manner, and, any of our affiliates may or may not earn commissions on select product or services purchased or lead deals that close, as well. Although many vendors may have active & in-good standing State and or National Licenses for their Profession, and all vendors registered with us have been heavily and thoroughly scrutinized and vetted by us, we still for legal purposes must declare that we are not making any representations to any entity as to the effectiveness, or results, of any vendor, as they are independent. See Privacy and Security Policy for all matters related to this website.