Should Energy Healers Pay Referral Fees?

✏️ Editor’s Note:
If you’re building your practice on referrals—and hoping to bring in even more—you might be wondering if it’s okay to offer a thank-you gift, a discount, or even a cut of your fee in return. It feels generous, and after all, plenty of other professions do it.

But there are lines that energy healers need to be careful not to cross! In this article, attorney Ian Foster explains how referral payments—even well-meaning ones—can put your liability protection or safe harbor status at risk.

You’ll learn what’s allowed, what’s not, and how to keep growing your practice through trust and service, not shortcuts.

I don’t have to convince you that it’s great to have a healing practice sustained by referrals. Consistent and regular referrals are a sign of many happy customers and a supportive community of like-minded professionals.

Not to mention, it means you’re well on your way to running a thriving business that makes a difference in the world!

It’s no surprise that healers are eager to generate more referrals—and I’m certainly not saying that’s a bad thing. In fact, my private legal practice is entirely driven by referrals at this point, so I’m a big fan.

But that begs the question: how do we generate more referrals?

Having happy clients is one way. Happy clients recommend us to their friends. A supportive community of like-minded professionals is another way to generate referrals both to and from trusted colleagues.

Then there’s the idea of paying referral fees. Referral fees can motivate someone—a client, friend, or colleague—to go the extra mile and actively make a referral. So we set up mechanisms to pay some portion of our fees to the referral source. We’re certainly not forcing anyone to make referrals; we’re just giving an extra incentive to someone who thinks we do great work and might be inclined to send new clients our way.

The Legal Risk Behind Referral Fees

If you're a practitioner of alternative health modalities like energy healing, there are important legal reasons to avoid paying or accepting referral fees.

As you may be aware, referral fees are a huge legal “no-no” for licensed professionals such as doctors, therapists, and attorneys. You can understand why this is the case.

For example, we want to ensure that a doctor’s sole motivation is supporting her patient’s health and wellbeing; we don’t want her recommending procedures that generate referral fees.

Similarly, we want an attorney to have a clear duty and obligation to advise her clients based solely on their legal interests, and not to consider how that might affect potential referral fees.

Well, for energy healers and other alternative health practitioners, referral fees might not be outright illegal, but they are legally inadvisable for two big reasons. First, paying and accepting referral fees puts at risk your “safe harbor” protection. Second, referral fees open you up to potential claims of liability for client harm.

What Is Safe Harbor and How Can You Lose It?

When it comes to energy healing, a “safe harbor” is a legal framework that protects you from potential prosecution for practicing healthcare without the proper government license.

We live in an exciting time where many government officials are open to the benefits of alternative healing modalities. A number of jurisdictions have passed laws that recognize the importance of energy healing and which give you space to do good work without getting in serious trouble.

We call these “safe harbor” laws because they create a safe space for you and your clients. Safe harbor protection is worth its weight in gold—it gives you tremendous peace of mind so you can focus on making a difference in your clients’ lives.

There are different kinds of safe harbor laws requirements. Right now I want to focus on one particular requirement: the prohibition against splitting fees.

It is common for safe harbor laws to prohibit splitting fees except for the purpose of paying another professional for services rendered to the specific client at issue. (See, e.g,, Minnesota Stats. § 146A.08(n), and Rhode Island General Laws § 27-74-4(10).) This is really just a fancy legal way of saying if you pay referral fees, you lose safe harbor protection.

It is true that many safe harbor laws expressly prohibit the payment of referral fees to fellow practitioners, and don’t always mention the payment of referral fees to, let’s say, friends and clients.

Still, I wouldn’t want to be the test case that pushes those boundaries. And the logic which underpins the prohibition still holds no matter who the referral source is: your only focus should be serving the client and doing what’s in her best interest.

You should not have the distraction (whether conscious or unconscious) of considering how to generate more referral fees. So let’s just stay away from referral fees and not take the risk.

Liability Risks: Another Good Reason to Avoid Referral Fees

The second legal problem with referral fees is the potential for increased liability for client harm. Of course you want to have good liability waivers and liability insurance, and you’ll do your best to help clients without causing harm. But none of that is perfect. Eventually someone may feel wronged or hurt and want to hold you responsible.

Indeed, if the client finds out that you paid a portion of their fees to someone else for the referral, that might give them the legal ammunition they need to get around a liability waiver or insurance protection.

Even just the accusation that you were acting in bad faith—whether or not it’s true—might give a judge an excuse to void your liability waiver and may even send your insurance company running for the hills.

Common Objections—and Why They Don’t Hold Up Legally

Now, I can already hear the objections coming from some of you—and that’s okay. Let’s address them.

Some of you are saying, “My state doesn’t have safe harbor laws.” Well maybe it doesn’t yet, but it may soon. And, more importantly, your clients may live in states that do have those laws.

Others are saying, “I don’t hurt my clients so I’m not worried about liability.” I’m sure you don’t hurt your clients deliberately and I don’t doubt that you do everything you can to avoid causing actual harm.

But here’s the thing about client harm: as far as the law is concerned, if the client feels harmed then the client is harmed. Harm is determined from the perspective of the client, not the practitioner.

Even more of you are saying, “I don’t pay referral fees. Instead I give gifts and discounts.” I’m here to tell you that legally it makes no difference how you characterize it. Paying a $25 referral fee is no different from giving a $25 gift card or a $25 discount. The law sees all three of those as the same thing.

What’s Next: A Mindset of Abundance

So how do we build a thriving business on referrals without paying referral fees? It’s about service, community, and mindset.

Serve your clients well, thinking only of their best interest. Feel good about the difference you’re making in people’s lives. Cultivate a community of trusted colleagues who have different skill sets that compliment yours. Put good energy out into the world and embrace the good energy that comes your way.

You’ll see referrals will come on their own without you even trying and you’ll find yourself making referrals to other amazing practitioners in return. It’s the circle of good work and abundance, and it’s big enough for all of us!

✏️ Editor’s Note:
Referral fees might seem like a small gesture, but they can lead to bigger legal problems than most healers realize.

If your goal is to grow through trust and professionalism, protecting your safe harbor and liability coverage is part of that journey.

Not sure how to keep referrals flowing while staying compliant? Your next step is to check out “Getting Referrals as an Energy Healer: Smart Strategies That Work” in the EMPA Learning Center—it’s full of support to grow your practice!

This article was originally published in the March/April 2023 issue of Energy Magazine. As part of the ongoing Laws & Regulations column by Ian Foster, these articles aim to help energy healers navigate legal, ethical, and business challenges with clarity and confidence.

Disclaimer: This article is for educational purposes only and does not provide legal, financial, or medical advice. The examples are general, and coverage may vary by policy. Always refer to your insurance provider or policy language for specific details, as the policy terms take precedence. For legal concerns related to your practice, consult an attorney.