Referral Fee Agreement Template

REFERRAL FEE AGREEMENT TEMPLATE FAQ

What is a referral fee agreement?

A Referral Fee Agreement is a contract where one party agrees to pay another party a fee for referring customers, leads, or business opportunities. It defines what counts as a valid referral, the fee structure, and when the fee is earned and paid.

Are referral fees always allowed?

Not always. Some industries (especially legal, healthcare, insurance, and regulated financial services) restrict or prohibit referral fees. Even where allowed, there may be disclosure requirements. This template is a general business template and should be adapted to the rules of your industry and location.

What makes a referral “qualified”?

Qualified referrals are usually defined by objective criteria: a new customer, a signed contract, payment received, or a minimum purchase amount. The agreement should also address exclusions, like existing customers, affiliates, or referrals generated through paid ads.

How do you calculate and pay the referral fee?

Common structures include a flat fee per qualified referral, a percentage of revenue collected, or a tiered structure. The agreement should define the payment schedule, how refunds/chargebacks affect the fee, and whether there’s a cap.

Should the agreement include non-solicitation or confidentiality?

Often yes. Confidentiality protects customer and pricing information, and a non-solicitation clause can prevent the referrer from bypassing the recipient’s relationship. This template includes optional clauses for both.

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