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What is a 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.

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