What is a Business Referral Agreement ?
A Business Referral Agreement is a contract that outlines how a business that refers work to another business or individual will be paid.
It makes good business sense to reward people or businesses for referring work to another business using a Business Referral Agreement. Incentivising referrals may also help bring in new clients or customers.
Rather than relying on an informal understanding, it is best to use a Business Referral Agreement, which sets out how much, when, and how the referrer will be paid.
Key points included
- Structure of referral fees;
- Timing and frequency for payment of referral fees; and
- Territories covered by the referral arrangement.