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Discussion Starter · #1 ·
I'm new to this site. I have a question about Michigan licensing. When I took my exam for the builders license, I remember there was a topic about not giving dollars to people who get business for you. I studied this in class and am quite sure the question was on the test, (it was something like, if Joe got a job for you doing remodeling, would it be okay to give him $50 for getting you the job?; and the answer was supposed to be no.)

I took this test several years ago, and was recently asked by a prospective client if they could get business for me and receive a commission of sorts from doing so. I am wondering now about the law I studied way back about such matters. Why would they have a law that we can't pay people to get business for us? Is there such a law? Am I remembering this correctly?
 

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Discussion Starter · #3 ·
thanks for your reply

Thank you for responding. I remember now this matter had to do with kickbacks. I wonder if there is a legal way to do this.
 

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Discussion Starter · #5 ·
thank you for replying

I think that's what the person wanted to call it; a commission. What I was wondering is, would the state try to call it something else? If one person were to find work and receive commissions for getting that work, I don't know if they could still call that a kickback, for it seems different.

Does anyone know where I could ask that question and get a legitimate answer?
 

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Give them a referall discount on their next project. $500/off or something like that for getting you a big project. Obviously your pricing will affect the discount at the end of the estimate.
 

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EVIL GENIUS
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Isnt this the same as a lead service?

I dont remember a question like that on my exam.
 
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EVIL GENIUS
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Call it anything you like. Paying someone to send you work, is illegal IF they are in any public service. Private, might be another story.
So bidclerk and servicemagic is all illegal?
 
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So bidclerk and servicemagic is all illegal?
No, they don't work for a public agency. HOWEVER, they do not actually do anything. They are facilitators. They get a bunch of people looking for work and people looking to hire you and point you all in the same direction. They don't actually do ANYTHING. If you are STUPID enough to use them, so be it. Of course, that is just my opinion.
 

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Discussion Starter · #11 ·
Thanks.

:thumbsup: I think I'm gonna have to be careful on this one.

I was aware you have to be careful of the public position thing, but I'm almost positive I seen the question about not giving any customer $$ for referrals. I just don't know exactly where to check this. If you go to the State of MI site, there's not really anything specific like this to check it.
 

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Dave from Macatawa
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MI has a license for sales people working as sales agents under a Builder's license. They apply for the Builder's Salesperson license and can only sell the services offered by the Builder. They can only work for one builder at a time. This type of sales person can sell homes built by the builder and not be a licensed realtor. Strange but true.

If that question was on the state exam (I am a licensed builder in MI) it was about licensing individuals selling your services. That way the state gets the testing and licensing fee.

Google MI Builder's Salesperson and you will find out more info.

Giving an existing customer a goodwill discount should not be a problem as long as you do not exceed the IRS guidelines of $ 600.00 max before you would be required to file a 1099 for money paid to a non employee.
 
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