Why is referrals always viewed negatively?

[ilegalhost]

The long life question i always had, what wrong with referrals exactly? it seems no one can explain the issues of it and it's always looked at negatively or is it the fact you prefer to trust your own peers with them instead of a random person's even though it's likely legit or don't like the fact that they using the opportunity to earn free money while you don't?
Just an honest curious question for everyone in the community in general