Referral Agreement Format
Referrals are the warmest leads a business can get, but fee misunderstandings can sour them fast. This template defines how introductions are registered, what earns a fee, and when it is paid.
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When and how to use this letter
Use this agreement when business partners, freelancers, or friendly contacts regularly send clients your way and expect a reward. Sign it before the first referral is made, not when the first deal is closing.
A signed PDF exchanged by email is sufficient. Keep a simple referral log, ideally a shared spreadsheet, where the referrer registers each introduction with the date and contact details. This log becomes the single source of truth.
Write the registration process in full detail. The referral fee clause gets the attention, but the registration and validity clauses do the real work of preventing arguments. State how an introduction is registered, how long it stays valid, and who decides whether a deal came from the referral.
Include what to avoid: avoid paying on verbal claims of I sent them to you. Require registration within the stated period. Avoid unlimited validity periods, which let referrers claim fees on clients who came back a year later on their own. And never promise fees on renewals unless you have priced that into the arrangement.
What happens next: the referrer starts registering introductions, you confirm or reject each one promptly, and fees are paid per the agreed schedule. A practical tip: confirm every registered introduction within 48 hours. Fast confirmations motivate more referrals; slow ones quietly kill the program.
Frequently asked questions
Does the referrer earn a fee on deals I close myself?
How long is an introduction valid for claiming the fee?
Should the fee be paid on contract signing or on payment?
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