Referral Fee Agreement Template

A referral fee agreement is a legal document that establishes the terms and conditions under which one party will pay another party for referring clients or customers. This agreement protects both the referrer and the business by clearly outlining compensation terms, responsibilities, and the scope of the referral relationship.

What This Template Is For

This referral fee agreement template is designed for businesses and professionals who want to formalize their referral partnerships. It's particularly useful for real estate agents, financial advisors, consultants, and service providers who rely on referrals for business growth. The agreement helps prevent misunderstandings by clearly defining payment terms, referral qualifications, and the duration of the arrangement.

When To Use This Template

Use this template when:

• Setting up a new referral partnership with another business
• Formalizing existing referral relationships
• Establishing a referral program for your business
• Creating a network of professional referrers
• Protecting your business interests in referral arrangements

How To Customize It

To customize this referral fee agreement:

1. Define the referral fee structure (flat fee, percentage, or tiered)
2. Specify payment terms and conditions
3. Outline the qualification criteria for valid referrals
4. Add any specific requirements or restrictions
5. Include confidentiality and non-disclosure provisions
6. Set the agreement duration and termination conditions
7. Add your business-specific terms and conditions

Common Use Cases

This agreement is commonly used in:

• Real estate agent referral networks
• Professional service provider partnerships
• Consultant referral programs
• Financial advisor networks
• Business-to-business referral arrangements

Best Practices

Follow these guidelines for an effective agreement:

• Be specific about what constitutes a qualified referral
• Clearly state payment terms and timing
• Include tracking and reporting requirements
• Define the scope of confidentiality
• Specify any exclusivity requirements
• Include dispute resolution procedures

Template Variations

Common variations include:

• Simple referral agreements for small businesses
• Complex multi-tier referral structures
• Industry-specific referral agreements
• International referral partnerships

Success Stories

Real estate agencies have used this template to build referral networks generating over $100,000 in annual commissions. Professional service firms have successfully established referral partnerships that increased their client base by 30% using this agreement structure.

Frequently Asked Questions