# Referral Fees ... is this something new for DC?



## pwrshift (Jul 25, 2007)

I just got an email from HCC that outlines their referral program:  "Refer a friend of family member to HCC and if they join as a Private, Group or Corporate member, you will receive a $3000 credit towards your annual dues.  If your referral joins as an Associate or Affiliate member you will receive a $2000 credit."

Nice incentive...but sure sounds like timeshares.

Let's see...If the $400,000 membership plans did this their referral credit would have to be $........?     Hmmmm   You might end up making more money selling referrals for them than at a job!  

Brian


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## Steamboat Bill (Jul 25, 2007)

pwrshift said:


> You might end up making more money selling referrals for them than at a job!



It is doubtful as the sales cycle for this is very slow.

I would still highly reccomend joining HCC, even if they offered $0 referral fees. I have received many e-mails about HCC and my experience with them. I haven even given people my personal cell phone to call. This referral fee is a fairly new concept and would not even cover the cost of one year membership.

I have said this before and will repost it again:

More Members = More Homes

That is why I like HCC. If I convince someone to join DVC or my Westgate Park City, then they will compete against me for the same limited pool of units. As more people join HCC, they simply buy more properties.


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## NeilGoBlue (Jul 25, 2007)

I think most dc's offer refferral fees...they just don't talk about it much before you sign up...Bellehaven's does.. it was buried in about a 100 page borchure/information sheet/club rules/info package.. and nobody has ever mentioned it to me..


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## BocaBum99 (Jul 25, 2007)

Depending on the state, this referral fee program could be a violation of a State's Real Estate Laws.

I believe it would be considered an illegal form of compensation in Florida.  You need to have a Real Estate license to accept a referral fee or commission for providing any service of real estate.

You can provide compensation for leads, but not based on whether or not someone purchases.


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## NeilGoBlue (Jul 25, 2007)

Just my non expert opinion... but, I don't think you are being compensated for a real estate transaction, you are being compensated for bringing a member into the 'club'.  Since they are not deeded, i don't think the real estae licensing laws would apply....


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## travelguy (Jul 26, 2007)

I enjoy discussing High Country Club and other DCs for two main reasons:

1. The travel to the properties is truly invigorating and exceptionally relaxing.  If you read the posts of the DC members and their travel experiences you'll realize that the experiences are revitalizing and our enthusiasm becomes contagious.

2. As a former business owner, commercial property investor and wacko entrepreneur, I'm intrigued by the Destination Club business model.  It appears to be a real win/win/win for members/management/investors.  Time will tell.

I personally don't like "referring" my friends and family to anything for compensation because I then feel that I have a vested interest in their decision and therefore their investment.  I have enough guilt over my own investments.


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## BocaBum99 (Jul 26, 2007)

NeilGoBlue said:


> Just my non expert opinion... but, I don't think you are being compensated for a real estate transaction, you are being compensated for bringing a member into the 'club'.  Since they are not deeded, i don't think the real estae licensing laws would apply....



WorldMark is a "Club".  When you purchase WorldMark, you don't own any of the underlying properties.  Why do you need a license to broker a WorldMark ownership?

It may be true that the business structure of a DC makes it NOT real estate.  But, if I were a real estate commissioner,  I could come up with a pretty strong argument that it is a real estate transaction and should be regulated as such.


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