Lead Referral Agreement Template

Create a legally-binding lead referral agreement that defines clear terms, establishes commission structures, and protects both parties. Used by marketing agencies, real estate firms, and business consultants.

Lead Referral Agreement Template

A lead referral agreement is a legal contract between two parties where one party (the referrer) agrees to send qualified business leads to another party (the service provider) in exchange for compensation. This agreement establishes the terms, responsibilities, and commission structure for the referral relationship.

What This Template Is For

This template helps businesses formalize their lead referral partnerships by clearly defining:

  • Referral qualification criteria
  • Commission structures and payment terms
  • Responsibilities of both parties
  • Legal protections and confidentiality requirements
  • Duration and termination conditions

When To Use This Template

Use this template when:

  • Establishing a new referral partnership with another business
  • Formalizing existing informal referral arrangements
  • Creating a referral program for your business
  • Setting up commission-based partnerships

How To Customize It

Follow these steps to customize your lead referral agreement:

  1. Define your specific referral criteria and qualification process
  2. Set appropriate commission rates and payment schedules
  3. Specify tracking and reporting requirements
  4. Add any industry-specific compliance requirements
  5. Include relevant non-compete or exclusivity clauses
  6. Review and adjust termination conditions

Common Use Cases

This template is commonly used in:

  • Real estate agent referral networks
  • Professional service provider partnerships
  • Marketing agency collaborations
  • Business consultant networks
  • Software reseller programs

Best Practices

Follow these guidelines for an effective agreement:

  • Clearly define what constitutes a qualified lead
  • Establish transparent tracking mechanisms
  • Set realistic commission structures
  • Include detailed payment terms
  • Specify confidentiality requirements
  • Add dispute resolution procedures

Template Variations

Consider these variations based on your needs:

  • Simple referral agreement for small businesses
  • Complex multi-tier commission structures
  • Industry-specific versions with regulatory compliance
  • International referral agreements

Success Stories

This template has helped:

  • A marketing agency establish a network of 50+ referral partners
  • A consulting firm increase lead generation by 200%
  • A real estate brokerage streamline agent referrals

Frequently Asked Questions

What should the commission rate be?

Commission rates typically range from 10-25% of the final sale, depending on your industry and lead quality requirements.

How long should the agreement term be?

Initial terms are usually 12 months with automatic renewal options, allowing both parties to evaluate the partnership's effectiveness.

What defines a qualified lead?

A qualified lead should meet your predetermined criteria for business potential, including budget authority, need, and timeline.

How are referrals tracked?

Referrals should be tracked through unique identifiers, dedicated landing pages, or CRM systems to ensure accurate commission calculations.

When are commissions paid?

Commissions are typically paid 30-45 days after the referred client makes a purchase, allowing for any refund periods.