{"id":56507,"date":"2021-06-10T12:48:08","date_gmt":"2021-06-10T04:48:08","guid":{"rendered":"https:\/\/zegal.com\/make-a-business-referral\/"},"modified":"2025-01-22T13:23:43","modified_gmt":"2025-01-22T05:23:43","slug":"make-a-business-referral","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/","title":{"rendered":"Make a business referral"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#What_are_the_steps\" >What are the steps?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#What_is_a_referral_agreement\" >What is a referral agreement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#How_to_do_it\" >How to do it<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#Step_1_Agree_the_high_level_commercial_terms_for_your_referral_business\" >Step 1: Agree the high level commercial terms for your referral business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#Step_2_Create_a_Business_Referral_Agreement_using_Zegal_and_make_sure_you_both_e-sign_it\" >Step 2: Create a Business Referral Agreement using Zegal and make sure you both e-sign it.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#Step_3_Ensure_a_consistent_arrangement_runs_throughout_your_business\" >Step 3: Ensure a consistent arrangement runs throughout your business<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#What_types_of_referrals_does_it_cover\" >What types of referrals does it cover?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#What_are_typical_referral_fees\" >What are typical referral fees?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zegal.com\/en-hk\/use-case\/make-a-business-referral\/#Client_case_study\" >Client case study<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-steps\"><span class=\"ez-toc-section\" id=\"What_are_the_steps\"><\/span>What are the steps?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted poster=\"https:\/\/zegal.com\/wp-content\/uploads\/2021\/07\/make-a-business-referral.jpg\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2021\/06\/Make-a-business-referral.mp4\" playsinline><\/video><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-referral-agreement\"><span class=\"ez-toc-section\" id=\"What_is_a_referral_agreement\"><\/span>What is a referral agreement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Referral Agreement is a very important agreement in a smaller company\u2019s marketing arsenal. It is used when an individual or company has agreed to spend effort referring leads or even in fact driving sales for another business.<\/p>\n\n\n\n<p>It\u2019s very common in a situation when for example the referrer has unique access to a market and the parties see that they can generate growth rapidly through a referral arrangement (and for the company receiving leads or sales, more quickly and cheaply than by investing directly in setting up the channel themselves).&nbsp;<\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button cta-btn-layout-two\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tSurprisingly easy way to get more referrals\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-do-it\"><span class=\"ez-toc-section\" id=\"How_to_do_it\"><\/span>How to do it<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-1-agree-the-high-level-commercial-terms-for-your-referral-business\"><span class=\"ez-toc-section\" id=\"Step_1_Agree_the_high_level_commercial_terms_for_your_referral_business\"><\/span>Step 1: Agree the high level commercial terms for your referral business <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p id=\"h-so-for-example-what-is-a-referral-and-how-much-money-is-paid-to-the-referrer-when-a-sale-comes-in-follow-the-questions-below-to-determine-that-the-referral-agreement-is-the-right-contract-for-your-use-case\">So for example, what is a referral and how much money is paid to the referrer when a sale comes in. Follow the questions below to determine that the Referral Agreement is the right contract for your use case.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Create_a_Business_Referral_Agreement_using_Zegal_and_make_sure_you_both_e-sign_it\"><\/span>Step 2: Create a Business Referral Agreement using Zegal and make sure you both e-sign it.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button cta-btn-layout-two\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tReferral Agreement\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-3-ensure-a-consistent-arrangement-runs-throughout-your-business\"><span class=\"ez-toc-section\" id=\"Step_3_Ensure_a_consistent_arrangement_runs_throughout_your_business\"><\/span>Step 3: Ensure a consistent arrangement runs throughout your business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p> If your referral arrangement is (as is very common) for one specific country or area, or even sales channel (eg web\/channel partners\/offline only\/word of mouth) ensure that you have similar arrangements in place for these other sales channels. You don\u2019t want any contract gaps. Your referrers are an essential growth tool for your business so make sure your contracts with them are signed and up to date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-types-of-referrals-does-it-cover\"><span class=\"ez-toc-section\" id=\"What_types_of_referrals_does_it_cover\"><\/span>What types of referrals does it cover?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Referral arrangements range from a very light touch, in the case of pure lead referral through to a referral arrangement that only pays in the event that a prospect buys a product or service.&nbsp;<\/p>\n\n\n\n<p>In all referral arrangements, however, there is never a \u2018sales agent\u2019 relationship. This is very important. It means that that referrer doesn\u2019t act as if they themselves sell the product or service. This type of relationship needs a more complex agreement. To help you decide whether the arrangement you are thinking of is well-covered by a Referral Agreement or if you need a different approach, ask yourself the following questions. If you answer all yes, then a Referral Agreement is good for your use case:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Am I paying or being paid a commission to simply introduce interested prospects to a service they may wish to buy?<\/li>\n\n\n\n<li>Am I also or alternatively being paid a commission for introducing interested prospects to a service they actually buy?<\/li>\n\n\n\n<li>Is this happening in specific areas or sales channels?<\/li>\n\n\n\n<li>The referrer never holds stock of the products or gives clients the impression that they are responsible for the delivery of the products or services.&nbsp; This is an important point. If you\u2019re not sure,&nbsp;<a href=\"https:\/\/zegal.com\/en-hk\/consignment-agreement\/\">read further here<\/a>&nbsp;on how this might be a different kind of arrangement known as an agency agreement or consignment agreement.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-typical-referral-fees\"><span class=\"ez-toc-section\" id=\"What_are_typical_referral_fees\"><\/span>What are typical referral fees?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is clearly an important question, it\u2019s also rather difficult to answer. It\u2019s a \u2018commercial\u2019 not a \u2018legal\u2019 question, but an important way of evaluating the value of a referral channel is to determine the cost of doing it independently.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s take two scenarios: the first is the example of a SaaS service that needs additional leads into its sales pipeline for a new market it is launching. The second is a very small company manufacturing tents that usually sells from its store and would like to use the internet to sell in another part of the country.<\/p>\n\n\n\n<p class=\"p-3 has-background\" style=\"background-color:#e3ebf8\"><strong>Scenario 1&nbsp;<\/strong>\u2013 The b2b SaaS software platform is launching in the UK, having operated in Asia. The SaaS company wants the UK to account for \u00bc of sales within 12 months. This is an ambitious target and requires a b2b sales force plus the fixed and commissions related to this setup. It will also take time to hire and build the team, slowing the rate of sales further. As an alternative, the SaaS company determines that for the UK alone, for a 12 month period it will work with an insurer that has a massive market share already and lots of prospects that will like this SaaS service. The combined cost of paying a referral fee and using a smaller inside sales team means this makes much more strategic sense. The two decide to enter into a 12-month agreement which is renewable after that date if it is working and makes economic sense at that time.<\/p>\n\n\n\n<p class=\"p-3 has-background\" style=\"background-color:#e3ebf8\"><strong>Scenario 2<\/strong>&nbsp;\u2013 The small business making tents does not want to spend the time developing a web e-commerce platform but it is looking to drive sales outside of its own store. An affiliate website blog has a huge amount of traffic and readers who are interested in outward-bound activities. These readers are highly likely to buy tents and the gear that the small business sells. The site charges nearly 30% for leads that go on to buy a tent but the small business decides that the increased volume of sales and zero implementation cost makes up for this.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-client-case-study\"><span class=\"ez-toc-section\" id=\"Client_case_study\"><\/span>Client case study<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em>Jonathan Yuan from <strong>Jonathan Yuan Pte Ltd <\/strong>uses Zegal to enter into a mutually beneficial relationship.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the steps? What is a referral agreement? A Referral Agreement is a very important agreement in a smaller company\u2019s marketing arsenal. It is used when an individual or company has agreed to spend effort referring leads or even in fact driving sales for another business. It\u2019s very common in a situation when for [&hellip;]<\/p>\n","protected":false},"author":134,"featured_media":0,"parent":55263,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":[13565],"meta":{"_acf_changed":true,"_editorskit_title_hidden":false,"_editorskit_reading_time":3,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"usecases":[],"class_list":["post-56507","page","type-page","status-publish","hentry","template-sme-trade"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Make a business referral | Zegal Hong Kong<\/title>\n<meta name=\"description\" content=\"What are the steps? What is a referral agreement? A Referral Agreement is a very important agreement in a smaller company\u2019s marketing arsenal. 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