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I don’t think it is illegal. There are heaps of businesses around that offer referral fees for business.

I have a referral system in place at the moment, but I don’t offer to everyone. I have a few people that I have formal agreements with in regard to new and ongoing business generated by them. It is working really well and has allowed me secure meetings with decision makers of very large national companies who I wouldn’t have had a hope in hell of getting into on my own (at least not quickly).

Good luck with it :)