A referral fee cannot be paid to an unlicensed individual. In AZ, the only time that a finder's fee can be paid to an unlicensed person is a property manager paying a tenant that refers another tenant, in the form of rent credit and only a certain amount of times per year.

Not legal so it does not matter how I feel about it.

referral fees paid to unlicensed individuals is illegal.  So how do I feel about them?  I feel that they're illegal.

Well, it's illegal in my state. So I feel negatively towards it. -Kasey

This is illegal in Oregon.

About the same as I feel about doing Utah prelicensee’s class assignments for them on AR. 

It's illegal in NC & SC! That's one reason I had my assistants get their licenses - that way I can now pay them referral fees! 

Law dictates not feelings....

In Tennessee, referral fees for real estate can only be paid to licensed individuals.

Not something you should do.

Against the law!

Check state law in your state.

Follow the rules in your state.

Against Florida law.

It would be illegal in North Dakota.

Doesn't matter how I feel about them... they are ILLEGAL! 

It doesn't matter how I feel about it...that is illegal in my state.

Illegal

It is illegal, no personal feeling about it. 

My heart aches for anyone who finds their self obtaining credit for a class project in this manner. The instructor or institution we pay for "learning" are the ones that should be teaching us.  How we "feel" about unlicensed and illegal activity has nothing to do with the price of tea. We should know the laws and follow them. 

Let us make a clear distinction.

IN common use, referral fee suggests the payment is made only when a closing occurs. This is called 'contengency based' referral. Most states require those paying or receiving such payments be licensed real estate professionals.

HOWEVER, the industry is saturated with marketing companies receiving payments. Some are contingent while others are 'upfront' payment for the introduction.

Let's not forget there are those who are not real estate agents who actively market to consumers with the intent to sell this contact info to agents. How much the agent pays depends on if the citizen has been contacted (vetted).

How do I feel about it?
Outraged when others do it.

Candice A. Donofrio nailed this one!

Illegal.

But in Florida, that does not stop it.  

Illegal kickbacks are alive and well...

Eve

This is not acceptable!

Many good responses.

It is against the law in my state so doesn't matter how I "feel".

in my state only one unlicensed person may do that to another unlicensed person and since I'm a broker I feel nothing about it since it can't involve me.

And how do we know you're not a spy trying to entrap people?  What's next, a question about setting commission rates?

Seriously though, check your state laws on what you can and cannot do.  Feelings are irrelevant.

unlicensed individuals must not be paid fees of any kind with reference to real estate...

It's illegal...and a good way to identify unethical agents.

Illegal in most, if not all, states. That covers it!

First off it is illegal to pay an unlicensed person/company a referral fro real estate. Here it is over $50. However it is being done as someone makes a web site, attract buyers or sellers and refers them nationally. 

Just walk away !

I was going to say 'dude' but your Anonymous. It's illegal & that's it.

Yes, great answers and I won't be surprised, if it will be asked again.

A lot of great answers here. 

Agree.

It is illegal to pay someone unlicensed.

As most have pointed out, it is usually illegal (I don't know every states law, but in general I beleive it's not allowed), so not recommended.

I can sum it up into one word - illegal. Bird dog, finder or whatever they are called are illegal if the person is not real estate licensed.

Law