Even if our lawyers would allow us to issue messages on message boards about our enforcement policy, we couldn’t do so, because we haven’t settled on one yet. The individual cases that we have considered so far differ enough from one another that we have had to review each case’s particulars thoroughly. So my guess is that we’ll be handling the question on a case-by-case basis for quite some time, and never initiate any discussion by our IP attorney’s letter in peoples mailbox! Where I come from you would sooner sit down together, first drink 3 cups of coffee / Heinekens and then talk about win-win business development opportunities…

The best practice is to allow all to submit referrals because everyone knows someone and there is a branding value of having everyone discuss the attributes of the firm with colleagues.

Under that practice, there is a ‘mature adult’ policy that expects those with a conflict of interest or no need for the money to opt out of the bonus. I have found that opting out of a bonusis quite common among senior folks.

John

I do have an additional question for public companies due to the Sarbanes Oxley Act – are referrals and metrics considered to be a stringent requirement?

Is there some type of business process that one must use to show how a company initiates or processes the transactions? And will these systems be evaluated?

And do the EEO/ OFCCP new requirements also impact Referral Programs?

I’m sure its a delicate matter, but can we all expect letters in the mail etc. or do you interpet your IP to only cover the whole smash- i.e. the dollar transactions etc. rather than the mere act of reffering someone with a GUID to a job via email or web form ?

At H3.com we focus on a rather narrow track of metrics: the path from recruiter to new hire, especially if it involves a mix of employees and non-employees who will not only share the cash reward to be disbursed by H3.com, but who will also share the pride of having connected a person they can vouch for with an opportunity they feel they can vouch for.

As to our patent (filed for in 1999, and issued on 11/22/05, with a 2nd one on the way) we’re in discussion with multiple parties to pursue a modest ‘h3.com inside’ strategy. Apart from the IP side, it does not seem to make sense to duplicate complex efforts like tracking and disbursement to non-employees.

The main thought on this being that those in leadership roles are in a position that should also have some focus on growing the company (and probably benefit in some way from growing it other than a bonus through an ERP program). What are your thoughts on this?

(yes we have our own position on the issue, but we are not discussing it at this time as a precaution)

On November 22, 2005, the US Patent Office awarded patent number 6,968,313, ‘Method and apparatus for facilitating and tracking personal referrals’. Here’s the language:

‘The present invention facilitates and tracks personal referrals made via electronic networks. In a preferred embodiment, using electronic mail delivered to a participant interface 110, a central controller 100 provides a Web page through which an individual may enter the electronic-mail addresses of those whom he or she wishes to refer. This spares the individual the inconvenience of generating his or her own electronic-mail referrals, and also enables the central controller to determine the format and tone of the referral. The address or contents of the Web page includes a unique identifier that is exclusively associated with that individual and a specific offer 120. In this way, the series of referrals may be tracked, duplicate referrals to the same electronic-mail address may be eliminated, offers may be withdrawn or modified, and referrals about an expired or withdrawn offer may be prevented’

Besides length of time it took to fill the placement, or the tools they utilized to make the placement, what other aspects are you looking at?

Please share.