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Is getting paid to refer business services to companies legit or a scam

Shawn HullFounder and CEO, Aspire Partners. Author of The Smarter Way to Make Money.

It is legit. It is also one of the oldest business models on earth. Brokers, agents, and referral partners have been paid commissions since before anyone alive today was born.

The question is not whether the model is real. The question is whether the underlying service is real. I made that mistake early on. I got excited about a referral deal and did not dig into what I was actually putting my name on. The client had a bad experience. That came back to me. So the legitimacy starts with the service, not the commission structure.

Here is how I think about it now. I only refer services where I would ask myself: would this client ever want to leave? If the answer is no, because they are getting real value every month, then I am comfortable. If the answer is yes, because the value was a one-time thing or the savings disappear over time, I walk away from it. The referral fee is secondary. The service has to hold up first.

The model I work in fits what I call expense reduction. That is one of four kinds of residual income. The others are real estate, retirement accounts, and royalties. I argue expense reduction is the most honest of the four because the client gets fresh value every month. The savings show up on the bill. That is why the client stays. And when the client stays, the referral partner keeps getting paid. Work once, get paid continually. That is not a scam. That is a sound business structure if the service underneath it is real.

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