Best way to reward leads

[Patrick Daniel]

I know that this has been covered before, but not exactly to the ends that I have been looking to find. 

1) What is the legality/tax implications of finders fees and referrals? Can referrals just go under marketing expenses?

2) What has been the most effective way to get people to WANT to refer you over another investor that people know? Have you found certain dollar amounts or putting a personal touch on the referral helps?

Thank you all in advance!

-Patrick