If my business is life coaching, is it illegal to pay an online coupon company $15 for each new referral I receive from them?

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If my business is life coaching, is it illegal to pay an online coupon company $15 for each new referral I receive from them?

My normal hourly rate is $75. I have reduced the coupon purchase cost to $35 for a single session. People can only purchase one session for themselves; they can purchase an additional one as a gift. The coupon company deducts $15 from the $35 payment to me. There is no further payment to the coupon companies for any subsequent sessions I have with these clients.

Asked on December 30, 2011 under Business Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

My understanding is that your type of business is not regulated by any state in his country. As such, I see nothing legally wrong to pay an online company $15.00 for each new referral that you receive from the company so long as there is nothing deceptive with respect to the transaction and that you honor the coupons purchased.

In fact many small business like the one you operate as a life coach routinely engage in this form of advertisement.


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