Overview of Referral Agreement


What is this document?

A Referral Agreement is an agreement between companies or individuals who refer potential clients or leads to the other party, in exchange for some form of compensation for the referral.


When would I use this document?

A Referral Agreement can be used when a company or individual is seeking referral clients or leads from another party, and wishes to encourage such referrals with a referral fee. It can also be used when a company or individual wishes to refer clients for a fee. This agreement is applicable across a wide range of industries.


Who signs this document?

The Referring Party and the party requesting referrals will both sign the Referral Agreement.


More details about this document.

The party providing the referral services is the “Referring Party”, and the party receiving the referral services is the “Company” or the name of the individual who is receiving the referral services.

A Referral Agreement can vary in length depending on the payment plan being provided in exchange for the referral services, and the size of the company providing or receiving the referral services. A Referral Agreement can either be one-sided or mutual.

A Referring Party will want to include strict payment clauses, term, and clauses dealing with ability to refer to others. It will also wish to protect its contact list.

A party receiving referral services will want to include strict confidentiality clauses, non-competition clauses, non-solicitation clauses, and scope of referral services.


What are the core elements of the document?

The core elements of a Referral Agreement include: scope of referral services being provided; referral fees; referral procedures; termination; relationship of the parties; non-competition; non-solicitation; and protection of the parties’ confidential information.

A Referral Agreement can contain mutual referral clauses. It can also include a number of other supporting clauses, including dispute resolution; assignment; expenses and indemnity.


Related Documents

Confidentiality Agreement/Nondisclosure Agreement – an agreement that protects confidential information

Distribution Agreement – an agreement for the distribution of products, to be used if a party is both referring clients and distributing the other party’s products


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