How to work with Bird Dogs?

[Roger Covin]

Hi BP Community! I closed my first few wholesale deals in Texas and have now enlisted a few buddies to search for properties for me (Bird Dogs). They aren't my employees so do I just need a basic contract agreeing to our terms (payment splits)? Should I consider payments a referral fee? Are there tax implications?

Interested in knowing a system ppl are using!

Thanks,

Roger