Referral networks are everywhere—from Bar association panels to informal coffee groups to full-blown lead generation services. But many lawyers don’t realize that participating in these networks can create ethics violations if you’re not careful.
Rule 7.2 prohibits paying for referrals—unless the arrangement is disclosed and complies with strict guidelines. For example:
- You can’t give cash, gifts, or “kickbacks” in exchange for case referrals.
- You must disclose any referral relationship to the client, in writing.
- If the network is providing leads, not referrals, it must be clear that the choice of lawyer is the client’s alone.
Another trap: joint marketing ventures. If you’re co-branding with another lawyer or service provider, you must be careful not to mislead consumers into thinking you’re part of the same firm—unless you actually are.
I often audit referral and marketing agreements to make sure they’re compliant. A referral network can be a goldmine—or a disciplinary landmine.