The short answer
At ACE, we help you get more referrals without paying for them. Your past clients get an easy invite to share with a friend. The friend gets a personal video from you and can unlock a real gift card, like a coffee on you, for watching it. The reward is for the friend's time spent watching, never for buying, selling, listing or closing, and the person who shared it isn't paid for the referral.
Why paying for referrals is risky
There are two sets of rules to know. This is general information, not legal advice.
- RESPA (federal). You can't pay or receive referral fees with other settlement service providers, like lenders, title companies or inspectors. No kickbacks, gifts or "thank-you" money for sending business.
- State license law. Many states treat any gift to an unlicensed person for a referral as an illegal referral fee. Pennsylvania is one example. Some states allow a small gift with limits. Texas, for example, allows a gift card of up to $50 that can only be used for merchandise.
Rules change, and your broker may have stricter policies. Check with your broker and attorney before offering anything tied to a referral.
Step 1: Stay top of mind
People can't refer you if they forget your name. Keep in touch with past clients and your sphere on a steady schedule: a monthly update, a personal message every quarter, and a yearly home value update.
Step 2: Ask clearly and simply
Most agents never actually ask. Make it short and easy to say yes to:
"I love working with people like you. If you hear of anyone thinking about buying or selling, I'd be glad to help them, and I'll take great care of them."
Good times to ask:
- At closing, when they're happiest.
- On their home anniversary.
- After you send a home value update they found helpful.
Step 3: Make it easy to share
Give them something they can forward in one tap instead of asking them to remember your number:
"Here's a link you can send to a friend. They'll get a quick video from me and a coffee on me for watching it."
The friend gets to know you before they ever call, and your client looks good for sharing something useful.
Step 4: Thank people the right way
A handwritten note or a call is always allowed. Saying thank you isn't the problem; paying for the referral is. If you want to send a gift to the person who referred, check your state's rules and your broker's policy first.
Step 5: Turn events into referrals
Invite past clients to bring a friend to an open house or a client appreciation event. Ask for neighbors' names in your farm area, too. People who meet you in person are much more likely to refer you later.
What we've seen
Across ACE campaigns, engagement has ranged from about 5% to 28% across direct mail and digital. Offers from someone the person already knows usually do better than cold outreach. These are past results, not a promise for your business.
When this isn't the right fit
- You want to pay people for referrals in a state that bans it. Don't. Stick to staying in touch and asking.
- You don't follow up with the friends who reach out. Referrals go cold fast.
- Your broker doesn't allow any consumer rewards. Use the asking and staying-in-touch steps on their own.
Learn more about ACE for realtors.
Frequently asked questions
Can realtors pay for referrals?
Not to other settlement service providers under RESPA. For past clients and friends, it depends on your state. Many states treat any gift for a referral as an illegal referral fee. Check with your broker first.
Can I give a past client a gift card for a referral?
Some states allow a small gift with limits, like Texas's $50 merchandise-only gift card. Others, like Pennsylvania, don't allow it. Check your state's rules and your broker's policy.
What is the best way to ask for referrals?
Ask clearly and simply at good moments, like closing, home anniversaries or after a helpful home value update. Give them something easy to forward.
Can I reward the friend who was referred?
ACE campaigns reward the friend only for watching a short video, never for buying, selling, listing or closing. Have your broker review any reward before you use it.
How do I get more referrals from past clients?
Stay in touch on a schedule, ask clearly, make sharing easy, and invite them to events.
About the author
Jake Nicks is the founder of ACE (Actual Consumer Engagement), a customer acquisition firm in Frisco, Texas. He has 10 years in paid media and has directed more than $2 billion in ad spend. ACE's verified-action gift card technology is protected by U.S. Patent No. 11,847,634 B2.
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