Yes - Realtors can legally earn referral fees from contractors for standalone home service jobs like roofing, plumbing, and cleaning. What’s prohibited under RESPA are referral fees tied to mortgage settlement services. A contractor referral that happens outside of an active real estate transaction is a completely different thing.

RESPA — the Real Estate Settlement Procedures Act — was designed to protect homebuyers from hidden kickbacks during the mortgage process. It prohibits paying or accepting fees in exchange for referring 

 tied to a federally backed mortgage loan.

Settlement services are the specific services involved in closing a real estate transaction:

Home inspections conducted as part of the transaction

If a referral fee is connected to any of those services during an active transaction, RESPA applies and the fee is not permitted. Full stop.

When in doubt, ask your broker. RESPA rules can vary in application by state, and your broker is the right person to confirm what’s permitted in your market. This guide covers the federal framework — local rules may add additional considerations.

Think about what this looks like in practice: a past client calls you eight months after closing asking who to call about their roof. You recommend a roofer you trust. That roofer gets a $15,000 job. There’s no mortgage, no transaction, no closing — just a homeowner who needed a contractor and called the person they trust most. That referral arrangement is perfectly legal to compensate.

Contractors and Services You CAN Refer for a Fee

Any standalone home service that isn’t tied to a mortgage closing falls outside of RESPA. That covers the vast majority of what your clients ask you about:

These are all services your clients ask about constantly — before listing, after closing, and throughout the years they own their home. Every one of them is a legitimate referral opportunity.

When a referral is tied to an active real estate transaction and involves a settlement service, RESPA applies. These arrangements are off-limits:

❌ NOT LEGAL TO REFER FOR A FEE (RESPA-COVERED)

Mortgage lenders and loan officers (tied to a transaction)

Title companies and title insurance providers

Home inspectors when part of a transaction

Appraisers conducting a transaction appraisal

Hazard or homeowner’s insurance arranged at closing

Note that home inspectors and insurance providers 

 of a transaction — a homeowner hiring an inspector for general peace of mind, or shopping for insurance renewal on their own — may not be covered by RESPA in the same way. The key factor is always whether an active mortgage transaction is involved. When in doubt, check with your broker.

How Much Can a Realtor Actually Earn From Referring a Contractor?

Referral fees for home service jobs are typically 5–15% of the total job value, agreed upon upfront between the realtor and the contractor. There’s no industry-mandated rate — it’s a private arrangement.

Here’s what that looks like on real job sizes:

A realtor with an active client base who refers two or three roofing or remodeling jobs a year can add $3,000–$10,000+ in income without any extra work beyond the recommendations they were already making.

The arrangement being legal is the starting point. For it to actually work long-term, a few things need to be in place:

 A simple agreement that names the commission rate and the payment trigger. It doesn’t need to be complicated, but it needs to exist.

 Being transparent with your client that you have a referral arrangement with a vendor is the professional standard. It protects you and maintains trust.

 Chasing contractors for payment gets old fast. A platform that handles the tracking and commission automatically — so you refer, the job closes, and the payment comes without any follow-up on your end.

 Some brokerages have internal policies around outside income. A quick conversation with your broker before you set anything up is always worth it.

Thankfully that's exactly what ReferToday is built for. Your referral arrangement is documented on the platform, your client sees it transparently, every job is tracked, and your commission comes automatically when it closes. No paperwork, no follow-up, no gray areas.

→ Create Your Free ReferToday Account ←

Q: Is it legal for a realtor to accept a referral fee from a contractor?

Yes, for standalone home service referrals. RESPA prohibits referral fees tied to mortgage settlement services like title, appraisal, or lending. It does not prohibit a realtor from earning a commission for referring a homeowner to a roofer, plumber, or other contractor outside of an active real estate transaction.

Q: Does RESPA apply to contractor referrals?

Not for most home service contractors. RESPA applies to settlement services involved in a federally backed mortgage transaction — title, appraisal, escrow, lending. Roofing, plumbing, HVAC, painting, cleaning, and most other home service trades are not settlement services and are not covered by RESPA when referred outside of a transaction.

Q: Does a realtor’s referral fee need to go through their broker?

For agent-to-agent real estate referrals, yes — the fee typically flows through the broker. For contractor referral fees outside of a real estate transaction, the answer depends on your brokerage’s internal policies. Some brokerages have rules about outside income. Check with your broker before setting up any formal arrangement.

Q: How much can a realtor earn referring a contractor?

Referral fees for home service jobs typically range from 5–15% of the total job value, agreed upon upfront. On a $20,000 roofing job, that’s $1,000–$3,000 for a single introduction. Realtors with active client bases who formalize a few of these arrangements can add meaningful income without any extra work.

Q: What’s the easiest way for a realtor to earn referral fees from contractors?

The easiest way is through a referral marketplace like ReferToday, where contractors list their businesses with a pre-set commission rate. Realtors browse, refer clients through a personal link, and earn automatically when a job closes — no individual negotiations, no tracking spreadsheets, no chasing payments.

Can a realtor refer a contractor and get paid?

Which App Truly Gives the Most Money on Referrals?

Everyone wants to know which app pays the most for referrals. And honestly, it's a fair question. You want to make some quick easy cash and to be honest, who doesn't? So I'm going to show you exactly which apps pay the most for referrals with the least amount of time spent, and then I'm going to show you something that blows all of them out of the water.

There are plenty of apps that pay you for referring friends. You've probably seen them. Here's what the most popular ones are actually paying right now:

Cash App pays you $15 and your friend $15 when they sign up and send their first payment using your code. Robinhood pays both you and your friend $15 to $30 when they open an account with your link and fund it. Coinbase rewards you with crypto when your referred friend completes identity verification and makes their first purchase. Mint Mobile pays $25 when a referred friend activates service. 

SoFi gives you $20 in reward points per referral when your friend downloads the app, registers through your link within 24 hours, and starts using it. Your friend gets $10 in points. SoFi also runs separate referral programs for loans, investing, credit cards, and banking, so if you're deep in their ecosystem you can stack referrals across multiple products.

Ibotta pays $10 when your friend uses your referral link to sign up and scans their first receipt. Your friend also gets $10. There's no cap on referrals so if you have a large friend group or social media following this one can add up.

Not bad for a few minutes of effort. But here's the thing, most referral bonuses only pay after the new user completes a required action, and in practice most bonuses never get approved. Common reasons include sharing the wrong link, referring low intent users, or missing requirements like minimum activity levels and payout thresholds.

And even when everything goes right, you're looking at a one-time payout. Your friend signs up, you get your $15, and that's the end of it. You're not building anything. You're not earning anything recurring. And the moment everyone in your network has already signed up, there's nothing left to refer.

Which brings us to the bigger opportunity that nobody in these comparison articles ever talks about.

The Bigger Opportunity Nobody Talks About

Here's what most people searching for referral payouts don't realize. The highest earning referrers in the world aren't referring apps to their friends. They're referring real services to people who actually need them (plumbers, painters, roofers, cleaners, mechanics, and more).

Let me ask you something. At some point in your life have you ever referred your mechanic to a buddy who needed their car fixed? Recommended a nail salon to your best friend? Knew someone who needed a contractor and immediately thought of the one you trust? Of course you have. Everyone has.

That recommendation you gave without thinking twice was worth well over $100. And here's the part that might surprise you. Referring someone through a platform like 

 takes the same amount of effort as referring them to a one-time bonus app. You share a link. That's it.

The difference isn't how hard you work. It's knowing that your referrals have always been worth something and finally having a place that pays you for them.

And maybe you're sitting there thinking you don't know any service businesses worth referring. Well ReferToday.io has a full 

 across all different categories that you can browse at any time. Find one you like, generate your own personal referral link, and start sharing it with the people in your network who need that service.

Think about it this way. A realtor recommends a contractor to a new homeowner. That job is worth $3,000. If that realtor had a referral commission of even 5% they just earned $150 from one conversation they were already having. Do that ten times and you've earned $1,500 from referrals you were making for free.

A home inspector points a client toward a trusted HVAC company. A neighbor tells a friend about the best cleaning service in town. A mortgage broker recommends a moving company. These conversations happen every single day across millions of people and almost none of them are getting paid for it. Not saying you have too, but the opportunity is there for the taking!

Browse the marketplace. Grab your referral link. Share it the way you already share recommendations.

Which app gives the most money on referrals?

 "Professionals can get paid for referrals by sending qualified customers to businesses that offer referral commissions. The business lists its offer, the professional submits the referral, the lead is tracked, and if the job closes or meets the payout terms, the professional earns the agreed commission."

Top Questions About Getting Paid for Referrals

Can professionals get paid for referrals?

Yes. Professionals can get paid for referrals when they introduce a potential customer to a business that offers a referral commission. If the referral meets the business’s terms, such as turning into a closed job or paying customer, the professional can earn a commission.

What kind of professionals can earn referral commissions?

Realtors, property managers, home inspectors, contractors, consultants, insurance professionals, local business owners, and other trusted connectors can earn referral commissions. The best referrers are usually people who already recommend businesses as part of their daily work.

How do referral commissions work for professionals?

A business lists its services and commission offer. The professional refers someone who needs that service. The business follows up with the customer. If the referral turns into a successful job or paying customer, the professional earns the commission.

Do professionals need to sell the service?

No. A professional does not need to act like a salesperson. The main role is to make a trusted introduction between someone who needs help and a business that can provide the service.

When does a professional get paid for a referral?

Professionals usually get paid after the referral reaches the business’s payout milestone. That could be a booked appointment, signed agreement, completed job, or paid invoice. On a commission-based referral platform, the most common model is payment after the job closes.

How Can Professionals Get Paid for Referrals?

Professionals can get paid for referrals by turning the recommendations they already make into tracked, commission-based introductions.

Many professionals already refer people to businesses without getting paid. A realtor recommends a painter. A property manager shares a plumber’s number. A home inspector suggests a roofer. A consultant introduces a client to another service provider. A contractor sends a job to someone else because it is outside their scope.

The problem is that most of them happen casually. A professional sends a text, makes a phone call, or gives someone a business card. If the customer books, the business gets revenue, but the person who made the introduction may never know what happened.

A referral commission system makes that process cleaner.

Instead of referring informally, the professional sends the lead through a platform. The business receives the referral, follows up with the customer, and updates the status. If the job closes and the commission terms are met, the professional earns the commission.

 can be useful. It gives professionals a clearer way to refer trusted businesses, track referral progress, and earn when eligible referrals turn into closed jobs.

Why Do Professionals Make Good Referrers?

Professionals make good referrers because they already have trust with the people they serve.

A customer is more likely to listen when the recommendation comes from someone they already know. That trust makes the introduction more valuable than a cold lead from an ad or directory.

For example, a homeowner may ask their realtor for a contractor after buying a house. A landlord may ask a property manager for a repair company. A business owner may ask a consultant for a trusted marketing agency, bookkeeper, or service provider.

In these moments, the professional is not forcing a sale. They are helping someone solve a real problem.

That is what makes the referral valuable.

The professional understands the customer’s situation. They may know the urgency, budget, service need, or type of business that would be a good fit. When they connect that customer with the right business, they create value for both sides.

The customer gets a trusted recommendation.

The professional can earn a commission for making the connection.

What Types of Professionals Can Earn Referral Commissions?

Many types of professionals can earn referral commissions if they regularly meet people who need trusted services.

The best fit is usually someone who already gets asked for recommendations.

A realtor may know homeowners who need painters, movers, roofers, cleaners, or landscapers. A property manager may know landlords who need maintenance companies. A home inspector may know buyers who need repairs after an inspection. A contractor may know when a customer needs a different trade.

These professionals are valuable because they are close to the moment of need.

They are not trying to create demand from scratch. They are often helping someone who already needs a service and is looking for a reliable business.

That makes the referral more likely to convert.

Businesses that pay for referrals are usually businesses where one new customer has real value.

Referral commissions work best when a closed job is worth enough for the business to reward the person who sent the lead. This is why referral commissions are common in service-based, commission-based, and high-ticket businesses.

 "A referral commission is a payment a business offers when someone refers a customer who turns into a real opportunity or closed job. The business lists the commission, the referrer sends the lead, both sides track the referral, and the referrer gets paid once the agreed result happens."

A referral commission is money a business pays to someone who sends them a new customer or qualified opportunity. The commission is usually tied to a result, such as a booked call, signed agreement, completed project, or closed job.

The business receiving the customer usually pays the referral commission. The referrer earns it for making the introduction, and the business benefits from a warmer lead that came through someone the customer may already trust.

A referrer usually earns the commission after the referral meets the business’s payout terms. For many commission-based referral programs, that means the referred customer becomes a paying customer or the job officially closes.

Is a referral commission different from a referral fee?

They are similar, but a referral commission is usually tied to a successful outcome. A referral fee can sometimes refer to a flat payment for sending a lead, while a referral commission often means payment happens after the business gets real value from the referral.

Yes. Professionals who already recommend businesses can earn referral commissions when they send qualified customers to businesses that offer paid referral opportunities. This can include realtors, property managers, home inspectors, contractors, consultants, local business owners, and other trusted connectors.

A referral commission is a reward a business pays when someone helps bring in a new customer.

The idea is simple. A business wants more customers. A person knows someone who needs that business. The person makes the introduction. If that introduction turns into a real customer, the business pays the referrer a commission.

This is different from random word of mouth because the reward is clear from the beginning.

In a casual referral, someone might say, “You should call this company.” That can be helpful, but there is usually no tracking, no clear payout, and no easy way for the referrer to know what happened next.

In a referral commission system, the process is more organized. The business explains what it offers, lists the commission, receives the referral, follows up with the customer, and updates the status. If the job closes, the referrer gets paid based on the listed commission.

That structure matters because most referral problems happen when the process is unclear. The business forgets who sent the lead. The referrer does not know if the customer booked. The customer may not mention who referred them. A good referral system removes that confusion.

That is where a platform like Referred fits in. Instead of making professionals chase updates through texts or awkward follow-ups, Referred gives them a cleaner way to send introductions and track what happens next. If you are a realtor, home inspector, property manager, or client-facing professional, the 

 is built to help you refer trusted businesses and earn when eligible jobs close.

Referral commissions work best when both sides know the rules before the referral happens.

A business should not just tell people, “Send us leads and we’ll take care of you.” That sounds nice, but it creates confusion later. A better system explains what the business does, what type of customer it wants, what commission it is offering, and when that commission is earned.

First, the business creates a listing. This listing explains the service, the ideal customer, the service area, and the commission being offered.

Next, a referrer finds the business and decides whether it is a good fit for someone they know. The referrer may be a professional, past customer, local connector, or someone who regularly recommends businesses.

Then, the referrer submits the referral through the platform. Instead of sending a random text or hoping the customer remembers their name, the referral is tracked from the start.

After that, the business follows up with the referred customer. The business may call them, schedule a consultation, give an estimate, or move them through the sales process.

Finally, if the customer becomes a paying customer and the job closes, the referrer earns the commission.

That simple process turns referrals into something both sides can actually manage.

Why Do Businesses Offer Referral Commissions?

Businesses offer referral commissions because warm referrals can be more valuable than cold leads.

A cold lead may come from an ad, search result, directory, or form submission. The customer may not know the business. They may be comparing multiple companies. They may not be ready to buy.

When someone recommends a business, they transfer trust. The customer is not starting from zero. They already have a reason to believe the business may be worth contacting.

For businesses, referral commissions are also performance-based. Instead of spending money upfront on ads and hoping the leads convert, they can reward people when real opportunities come in.

This is especially useful for businesses where one new customer has meaningful value. A contractor, home service company, consultant, agency, or other service provider may be able to justify a commission because one closed job can be worth far more than the referral payout.

The business gets a warmer lead. The referrer gets rewarded. The customer gets introduced to a business that may be a better fit.

Referral commissions are not only for salespeople.

In many cases, the best referrers are people who already make recommendations naturally. They may not think of themselves as salespeople. They simply know trusted businesses and often meet people who need help.

For example, a realtor may know a homeowner who needs a painter, roofer, cleaner, mover, or contractor. A property manager may know landlords who need repair services. A contractor may get requests for work outside their scope and want to send that lead somewhere useful. A consultant may know clients who need another type of professional service.

A referral is valuable because the referrer has a real connection to the customer, the business, or both. They are not just sending random names. They are helping match the right customer with the right business.

With a referral platform, that trusted introduction becomes easier to manage. The referrer can submit the lead, track updates, and earn if the job closes.

What Types of Businesses Should Use Referral Commissions?

Referral commissions work best for businesses where a new customer is worth enough to support a payout.

This usually includes service businesses, commission-based businesses, and businesses with higher customer value.

The model works especially well when the business already depends on trust. Customers often ask friends, agents, neighbors, or other professionals before choosing a service provider. A referral commission gives those recommendations a clear structure.

Not every business needs to offer a huge commission. The amount should depend on the average job value, profit margin, and how much the business is willing to pay for a closed customer.

The goal is not to overpay for leads. The goal is to reward people who help bring in real business.

When Should a Referral Commission Be Paid?

A referral commission should be paid when the referral reaches the milestone agreed to by the business.

Some businesses may pay when a qualified lead is submitted. Some may pay when an appointment is booked. Others may pay when a contract is signed. For many businesses, the cleanest option is to pay when the job closes and the customer becomes a paying customer.

The business does not have to pay for random or low-quality leads that never turn into revenue. The referrer understands exactly what needs to happen before they earn the commission.

For a commission-based referral platform, the strongest model is usually tied to a closed job. That keeps the incentive focused on real business outcomes.

It also encourages referrers to send better-fit customers instead of sending anyone they can think of.

How Much Should a Referral Commission Be?

A referral commission should be high enough to motivate referrers, but still make financial sense for the business.

There is no perfect number for every business. A good commission depends on the type of service, average job value, profit margin, and how hard it is to win a customer.

What Is a Referral Commission and How Does It Work?

You're generating thousands of dollars for these trades businesses. It's time to stop pretending a gift card makes you even.

Let's be honest about how this usually goes.

You close a deal. Your client moves in. They need a plumber, a landscaper, someone to repaint the living room. You send over a name, someone you've personally vetted, someone you trust, someone you've been recommending for years. The contractor gets the call. The client becomes a customer. Maybe a longtime customer.

And most realtors are completely okay with that. Because the thinking goes: 

"I'm doing right by my client. This contractor does great work. And hey, maybe one day they'll send me someone looking to sell."

That's a generous mindset. It's also, if we're being real, a losing one.

Think about the actual flow of referrals between you and a local service business.

You close 20, 30, 40 transactions a year. Every client you've ever worked with is a potential referral for a contractor — new homeowners need work done immediately, and past clients need it done repeatedly for as long as they own the home. You are a near-endless source of warm, trusted leads for that business.

Now flip it. How often does a plumber or landscaper have a client who happens to be ready to list their home? Maybe a handful of times a year, if that. And when it does happen, that client is going to choose their realtor the same way everyone does — through their own network, Zillow, or whoever their friend used last year. The contractor's recommendation is one voice in a crowded room.

The referral relationship is not equal. It never was. You are sending far more business their way than they will ever realistically send back to you.

You're Also Not the Only Realtor Doing This

That contractor you've been loyally sending clients to? There's a good chance two or three other realtors in your market are doing the exact same thing. All of you are feeding the same business, all of you are hoping to be top of mind when a client mentions they're thinking about selling.

When that moment finally comes, whose name do you think the contractor reaches for? Probably whoever they talked to most recently. Or whoever bought them lunch last month. Not necessarily you.

You've been competing for a referral that may never come, against agents you don't even know are in the running, with a business that has no particular reason to choose you over anyone else.

That's not a referral relationship. That's a one-sided arrangement you've convinced yourself is mutual.

The Gift Card Conversation Nobody Finishes

A lot of realtors already accept something from the contractors they refer, a pack of beers after a big job, a gift card around the holidays, a nice dinner here and there. And they feel fine about it. It feels like a friendly gesture between professionals.

But here's the question worth sitting with: if you're comfortable accepting a $50 gift card as a thank-you for a referral that turned into a $2,000 job — or a $10,000 job, or a client who's been using that contractor every year for the past five years — why wouldn't you want the option to earn something that actually reflects the value you provided?

The gift card was their way of acknowledging that you drove them real business. A referral fee is just that same acknowledgment, structured properly and scaled to what the referral was actually worth.

The concern most agents raise here is that putting money on the table changes the relationship. That it makes the recommendation feel less genuine. That clients might see it differently.

That's a fair instinct, and it's worth taking seriously. But consider this: you already disclose conflicts of interest all the time in real estate. Buyers know you earn a commission. Sellers know your incentives. Transparency is baked into how you operate. Disclosing a referral arrangement with a contractor — which you're required to do and which most clients will shrug at — isn't fundamentally different.

What actually matters to your client is whether the contractor does great work. If you're only referring businesses you genuinely believe in, the referral fee doesn't compromise the recommendation. It just means you're being compensated for the trusted position you've earned.

ReferToday makes it easy for real estate agents to earn referral income from the contractor recommendations they're already making — with full transparency and no awkward conversations.

If the Business Is Offering It, Why Leave It on the Table?

This is the part that gets overlooked entirely.

Many local service businesses are actively looking for structured referral arrangements. They know that a referral from a trusted realtor is more valuable than almost any form of advertising they could buy. They'd rather pay a fair commission on a converted job than spend money on Google ads hoping someone finds them.

 exist specifically to formalize this. Service businesses list on the platform, set their referral commission, and you earn when your referral turns into a paying customer. No awkward conversations. No informal handshake deals. Just a transparent system where the business is offering to pay and you have a clean way to collect.

If a contractor is actively willing to pay for referrals — and many are — passing on that is just leaving money on the table. Not out of principle. Just out of habit.

You built the trust. You did the due diligence of vetting these businesses over years of working with them. You put your reputation on the line every time you hand over a name. And you have the client relationship that makes the referral mean something in the first place.

That's not nothing. That's exactly what referral fees are designed to compensate.

The contractor gets a lifetime customer. Your client gets a reliable professional. And you get something more than a handshake and a hope that it comes back around someday.

We bring the vetted businesses to you. No hunting down contractors, no awkward "do you have a referral program?" conversation. The commission is already there… you just have to use it.

Note: Referral fee arrangements with post-closing service businesses are generally permissible under federal RESPA guidelines with proper client disclosure. Rules vary by state. See our full breakdown here: 

[Can Realtors Legally Accept Referral Fees From Contractors? →]

Why Realtors Deserve to Be Paid for Contractor Referrals

The short answer is yes — with the right disclosures. But most agents don't know where the line is, and that confusion is costing them real money.

Every agent has done it: a client closes on a house, asks for a good plumber, and you send over the number for the guy you've used a hundred times. He gets the job. You get nothing.

Now multiply that by every client you've ever worked with. Every landscaper referral, every HVAC recommendation, every power washing company you've vouched for. That's a lot of value you've handed out with zero return.

Here's what many real estate professionals don't realize: 

getting paid for those referrals is completely legal in most cases,

 as long as you understand which types of businesses are covered by federal law and which ones aren't.

When realtors hear "referral fee," the first thing that usually comes to mind is RESPA — the Real Estate Settlement Procedures Act. And for good reason. RESPA is a federal law that carries serious teeth: violations can mean fines up to $10,000 per incident, potential criminal charges, and even being banned from working in the industry.

So it's understandable why agents get nervous. But RESPA is more targeted than most people think.

RESPA Section 8 prohibits real estate professionals from giving or receiving fees, kickbacks, or anything of value in exchange for referring business to a 

 Settlement services are specifically defined as services tied to the real estate closing process. Things like:

Home inspectors (when required as part of the transaction)

If you refer a client to a mortgage broker and that broker pays you $200 for the referral, that's a RESPA violation. Same goes for kickbacks from title companies, insurance agents, or appraisers. The law is clear there.

Here's where most agents leave money on the table.

RESPA does not apply to businesses that provide services 

 and are not part of the settlement process. According to guidance from the Massachusetts Association of REALTORS® and confirmed by multiple state real estate commissions, businesses like the following are 

Blog, news, and guides all in one place

Can a realtor refer a contractor and get paid?

Which app gives the most money on referrals?

How Can Professionals Get Paid for Referrals?

What Is a Referral Commission and How Does It Work?

Why Realtors Deserve to Be Paid for Contractor Referrals

Can realtors legally accept referral fees from contractors?

Referral Program Example for Local Service Businesses

10 Tips to Get More Referrals for Your Business