Referral Agreement Template: Commission, Leads and Term

REFERRAL AGREEMENT FAQ

What is a Referral Agreement?

A Referral Agreement is a contract between two parties — usually a business and a referrer — where the referrer introduces new clients or opportunities to the business in exchange for a referral fee or commission.

Why is a Referral Agreement important?

It ensures transparency by defining when fees are earned, how they are calculated, and when payments are due. This helps prevent disputes and promotes trust between businesses and their referral partners.

When should you use a Referral Agreement?

Use a referral agreement whenever you want to establish a formal relationship with individuals or companies who introduce clients, especially in industries like real estate, consulting, software, or professional services.

What should a Referral Agreement include?

It should specify the scope of referrals, referral fees, payment terms, reporting obligations, confidentiality, termination provisions, and governing law.

Does a Referral Agreement create a partnership?

No — unless specifically stated, a referral agreement does not create a legal partnership, joint venture, or employment relationship. It only governs referrals and compensation.

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