Referral agreement template and generator
The contract skeleton most professionals look for before paying their first commission. Fill in the form and the agreement below updates as you type, then copy it or print it and have it reviewed. On Referaly this agreement is generated in each referrer's name and accepted online, with a time stamp.
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Referral agreement
Between the undersigned
[Company], [legal form], registered under number [registration number], with its registered office at [address], represented by [name], hereinafter the Principal.
And [referrer name], [status], residing at [address], hereinafter the Referrer.
Article 1. Purpose
The Referrer introduces the Principal to prospects likely to enter into a contract for [products or services]. The Referrer acts independently. They have no power of representation, no power to negotiate and no power to bind the Principal.
Article 2. The Referrer's role
The Referrer passes on the prospect's identity and contact details, along with anything useful to qualify the opportunity. A prospect is deemed referred if they were not already in contact with the Principal at the date of the introduction. An introduction gives rise to commission if the prospect signs with the Principal within [number] months of the date of the introduction.
Article 3. Remuneration
The Principal pays the Referrer a commission of [rate]% calculated on [basis: net revenue, fees, margin].The Principal pays the Referrer a fixed commission of [amount] [currency] for each sale closed with a client referred under this agreement. The commission falls due when [trigger: contract signature, invoice to the client or payment received]. It is paid within [number] days of that trigger, against an invoice.
Article 4. Term and pending introductions
This agreement is entered into for [term], renewable by tacit agreement. Clients introduced before the end of the agreement continue to give rise to commission for [period] after it ends.
Article 5. Exclusivity
This agreement is non exclusive. The Referrer remains free to work with other companies, including competitors, unless otherwise agreed in writing.
Article 6. Confidentiality and personal data
Each party undertakes to keep confidential the information received from the other. The Referrer passes on a prospect's details only after obtaining their consent, and informs the prospect of the introduction.
Article 7. Independence
This agreement creates no relationship of subordination. The Referrer operates freely, with their own means, and is solely responsible for their tax and social obligations.
Article 8. Termination
Either party may terminate at any time, in writing, with [notice period] notice. Commissions due on sales with clients already referred remain payable.
Article 9. Governing law
This agreement is governed by the law of [country]. In the event of a dispute, the parties shall seek an amicable solution before any legal action.
Signatures
Signed in two copies on [date].
For the Principal, name and signature: ______________________
For the Referrer, name and signature: ______________________
On Referaly, this agreement is generated in each referrer's name and accepted online, with the date and time. Your fee carries over as you entered it. Free for up to 5 prospects and 1 agreement, no credit card.
What this commission actually buys: tracking about 10,000 customers for almost three years, researchers measured that a referred customer is on average at least 16 % more valuable than a comparable customer acquired otherwise (Schmitt, Skiera and Van den Bulte, Journal of Marketing, 2011). And a reward does work: it increases the likelihood that a customer refers, especially toward weak ties (Ryu and Feick, Journal of Marketing, 2007).
Frequently asked questions
Is this referral agreement template free?
Yes. The form and the text are free to use, and the agreement is assembled in your browser as you type: the fields are not sent anywhere.
Is the agreement legally binding?
This page gives you a template to adapt. Whether each clause holds depends on the law you choose and on your sector, so have it reviewed by a lawyer before both parties sign.
What should a referral fee agreement include?
The parties, what counts as a valid introduction, the fee and what it is calculated on, the event that triggers payment, the payment deadline, how long an introduction stays valid, confidentiality and personal data, term and notice, and the governing law.
Can I pay a referral fee in any sector?
Not always. US real estate settlement services, UK consumer credit and mortgage introductions, and personal injury claims in England and Wales all have specific rules. Our guides to real estate referral fees and introducer fees in the UK cover them.
Percentage or fixed fee: which should I choose?
A percentage suits sales of different sizes, and a fixed amount suits sales of similar size. Our referral fee rates by industry list the usual levels, with a calculator.