Referral Fee Agreement for Service

This document is in the neutral form.

In a neutral referral fee agreement for services, both parties recognise the value of referrals and aim to establish a fair and equitable arrangement. The agreement typically begins by identifying the parties involved, stating their contact information, and defining their roles. It also outlines the nature of the services being referred and the target market or specific criteria for qualified referrals.

One crucial aspect of the agreement is the referral fee percentage or commission structure. This specifies the amount or percentage of the final transaction or service fee that will be paid to the party making the referral. The agreement also clarifies the timing and method of payment, ensuring both parties are aware of when and how the referral fees will be disbursed.

To maintain transparency and avoid misunderstandings, the agreement may include provisions that define the responsibilities of each party. This can include guidelines on how referrals should be made, any restrictions or exclusions on certain types of referrals, and the expected level of professionalism and confidentiality throughout the referral process.

Additionally, a neutral referral fee agreement for services may address issues such as termination or modification of the agreement, dispute resolution mechanisms, and non-disclosure obligations to protect sensitive information shared during the referral process.

By entering into a referral fee agreement, both parties can benefit from increased business opportunities, expanded networks, and shared success. The agreement acts as a guiding document, ensuring that the referral process is fair, transparent, and mutually beneficial. It provides a framework that fosters trust and collaboration between the parties, allowing them to leverage their respective strengths and capitalise on 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.