Referral Fee Agreement for Service

This document is tailored to the referee's needs.

A referral fee agreement for services (referee) is for the party who receives referrals from a referrer. By detailing the arrangements and timeline of the referral, this agreement aims to foster a mutually beneficial relationship between the referee and the referrer.

The opening part of this agreement identifies the respective roles of the parties, with a heavier emphasis on the duties of the referee. The agreement also addresses the preferred way of communicating and referring between the two parties to streamline the process.

The crucial aspect of the agreement is the referral fee percentage or commission structure. In addition to the timing and payment method, this section also explains the conditions of a successful referral, ensuring similar expectations between the two parties. To further consolidate, the agreement includes guidelines on how referrals should be made, any restrictions or exclusions of referrals, and confidentiality throughout the referral process.

Lastly, the agreement commonly outlines termination or modification of the agreement, dispute resolution mechanisms and limitation of liability to place both parties in a secure legal position.

By establishing a fair and equitable arrangement between a referrer and referee, the referee can enjoy increased business opportunities and expanded networks, which lowers its burden in marketing campaigns. For the referrer, not only can it enjoy additional income by making use of its network, it can also share success with partners, establishing its reputation and brand name as a trusted source of recommendations. Ultimately, this agreement fosters trust and collaboration between the parties, allowing them to utilize their strengths and open up new business prospects.

How to use this Document? 

Referral Fee Agreement where Referrer may refer potential customers to referees for a referral fee on a non-exclusive basis. The referral fee can be fixed or as a % of the net value of goods and services. This agreement is drafted in favour of the Referee.

Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed.

If either party wishes to amend the agreement in the future, both parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by both parties.