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Having referral partners is an excellent way to generate leads, increase revenue, and assist your customers when you’re unable to.
A Referral Agreement formalises this arrangement by setting out your terms and conditions.
To ensure each referral is accounted for, and that the terms of payment are agreed upon, a Referral Agreement is essential.
We’ve written more about Referral Agreements here.
What Is Included In A Referral Agreement?
A Referral Agreement will usually include clauses addressing:
- How the referral is made
- How to keep track of referrals
- Reports and audit rights
- Payment clauses
- Term and termination
- Exclusivity
An example of when a Referral Agreement may be used is in the case of a wedding photographer and a makeup artist who work in the same area, as these vendors are often booked for the same events.
The makeup artist may frequently be asked if they know of a reputable photographer, and vice versa.
Rather than informal ‘cross promotion’, the two vendors may take a step further by formalising this relationship and agreeing to receive a commission for all successful referrals. By signing a Referral Agreement, the vendors can profit from their networks, even when they may not have bookings themselves.
Need Help?
Don’t hesitate to give us a call on 0800 002 184 or email us at [email protected] to find out more about a Referral Agreement.
We’re available for a free, no-obligations chat to talk about your specific situation.
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