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At Trilegal, they had a policy of not even paying "contact-based" interns. It was very unfair, I'm sure the associates also do not give much time/effort to them (and thus reducing recruitment chances), which is unfair.
@OP, are you talking about it in the sense that it is more difficult to get a PPO when you enter a firm through a contact, or the other way round?
I think this depends on the position of your contact at the firm and your relationship with the contact. Even if your contact is at a very senior position at the firm, you might not be treated royally if your relationship with the contact is very distant.
Now that really depends on exactly how good your contact is/was, right? :)