An important consideration for any business engaged in rewarding or compensating others for lead generation or actual sales is a complete understanding of the legalities involved. While Autoblynk Referral Rewards is available to any U.S. or Canada dealerships that wish to use it to help customers refer others, not all U.S. states and Canadian provinces allow direct compensation.
While the majority of U.S. states and Canadian provinces do allow compensation, a few do not and the table below will be helpful in understanding exactly which states and provinces carry those limitations:
Compensation
|
Compensation
|
| Dealers in these locations may offer rewards | Dealers in these locations may NOT offer direct rewards |
| United States (by State)
Alabama
Canada (by Province) Alberta |
United States (by State)
California
Canada (by Province) British Columbia |
Why Do Some States and Provinces Not Allow Compensation?
For the few states and provinces above that do not allow direct compensation as part of any referral, the exact reasons vary by locale.
In general, the laws limiting compensation for referrals relate to any individual referring consumers to a motor vehicle dealer with the expectation of a fee, gain, or reward. Individuals not licensed as such or employed by businesses licensed as such would be in violation of those laws.
What Does This Mean for Your Dealership?
If your dealership is in the green column your dealership may subscribe to Autoblynk and offer rewards for successful referrals.
If your dealership is in the red column your dealership may subscribe to Autoblynk but cannot offer direct compensation.
Regardless of compensation, providing your customer base with an easy-to-use portal to make referrals and actively promoting it is just a smart idea that will help your dealership to grow.
