Join Now
Browse Template

Referral Fee Agreement for Service


A referral fee agreement for services is a mutually beneficial arrangement where referrers can earn a fee or commission for recommending potential clients or customers to a service provider. This agreement helps establish clear terms and conditions for referrals, including the referral fee percentage, payment terms, and any specific requirements or restrictions. By using a referral fee agreement, referrers can ensure fair compensation for their recommendations and service providers can benefit from new leads and business opportunities. It's a win-win situation that promotes collaboration and incentivizes the referral process.

How to Tailor the Document for Your Need?


Create Document

Fill in the details of the parties. You can click the "Fill with Member’s Information" button to complete it with information saved to your account.


Fill Information

Please fill in any additional information by following the step-by-step guide on the left hand side of the preview document and click the "Next" button.


Get Document

When you are done, click the "Get Document" button and you can download the document in Word or PDF format.


Review Document

Please get all parties to review the document carefully and make any final modifications to ensure that the details are correct before signing the document.

Document Preview

Document Description

This document is tailored to the referrer's needs.

A referral fee agreement for services (referrer) is for the party who refers clients or customers to another party and expects to receive a fee or commission in return. 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 referrer, who is expected to use all reasonable efforts to refer clients and endorse 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 Referee 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.  


Related Documents