What are payments made for directing business to a service provider known as?

Payments made for directing business to a service provider are known as referral fees. This terminology is widely understood in many industries, including real estate and property management. A referral fee is typically a monetary incentive offered to individuals or entities that refer clients or customers to a service provider or business.

When a condominium manager or agent refers a potential client to a specific service provider and receives compensation for that referral, this constitutes a referral fee. These fees reflect the agreement between the parties involved, where the service provider recognizes the value of the lead and compensates the referrer accordingly.

This concept is distinct from other terms like service commissions, which usually refer to payments earned based on the services rendered, or consultation fees, which are charged for professional advice rather than for referrals. Transactional payments might refer to payments made in the process of completing a transaction but do not specifically capture the essence of compensating someone for directing business to another. Understanding these distinctions helps clarify the nature of referral fees in the context of condominium management and related services.