Rebating?? Is this Legal?

Just had lunch with a real estate friend of mine who has a "Top referrer" type dinner. Basically what he does is he keeps track of referrals sent to him by his clients, and those who ultimately end up buying from him count as a referral from the original client. Could the same be done with med supp clients? Could you promote a type of competition among your clients and whoever the top 5 referring clients were have a dinner for them? Hopefully my question isn't confusing. Additionally, could you do this with a group of people who aren't clients, but say business associates. Who refers the most

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