Referral Fees and Gifts - Massachusetts

[Michael King]

Hi everyone, I live in Massachusetts. I work a full time job, and have time to work as a real estate agent in the evenings but it doesn't leave me a lot of time for prospecting. If I spend a lot of time prospecting, my quality of service suffers. So I am looking for creative ways to advertise. I'm looking into making a short video ad that can be marketing for me while I work. I would love to be able to offer referral fees or gifts to non-licensed people for referring business to me, but from what I understand giving referral fees to non-licensed consumers is not legal. What about gifts? Does anyone know where I can find these laws and regulations? Thanks much! Mike

[Cynthia Nina-Soto]

@Michael King welcome.  I live in Salem, MA.  I've had my license since 2005 and got my brokers license 5 years ago. Referral fees to non-licensed people is a sure fire way to loose your license.  Instead of giving out cash incentives or gifts focus on giving value.  Always come from a position of help "What can I do to help you in your life?" In the long run that will go a lot further than any gift card or box of chocolates you can give out.  I will however give you one piece of advise - always thank your referral providers.  Call them and say thank you.  Send them a hand written thank you note.  Keep them up in the loop as to how things are going (without breaking confidentially) and thank them again. 

With regards to prospecting, videos are a great way to stay top of mind. People tend to work with those they know and trust and what better way to get to know you than by having tons of video.  Start a vlog and share it with your database. Post to FB, Youtube and Instagram, etc. Post it where ever your database is.  This is something I've recently started and have found to be a great way to prospect.  My favorite format is SnapChat!!!

Hope this info helps.  Let me know if there is anything I can do to help you.