Referral Agreement Template: Commission, Leads and Term

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Referral Agreement Template

This Referral Agreement (“Agreement”) is entered into on [Date], by and between:

Company: [Full Legal Name / Business Entity]

Address: [Address]

Contact: [Phone, Email]

Referrer: [Full Legal Name / Business Entity]

Address: [Address]

Contact: [Phone, Email]

Together referred to as the “Parties.”

1. Appointment

The Company appoints the Referrer to introduce potential clients or customers for the Company’s products or services, subject to the terms of this Agreement.

2. Referral Fee

The Company agrees to pay the Referrer a fee of [X]% of net revenue from referred clients.
A “Referred Client” means any client who enters into a contract with the Company as a direct result of the Referrer’s introduction.

The Company agrees to pay the Referrer a fee of [X]% of net revenue from referred clients.

A “Referred Client” means any client who enters into a contract with the Company as a direct result of the Referrer’s introduction.

3. Payment Terms

Referral fees shall be calculated based on payments actually received from Referred Clients.
Payments will be made [monthly/quarterly] within [X] days of the close of each period.

Referral fees shall be calculated based on payments actually received from Referred Clients.

Payments will be made [monthly/quarterly] within [X] days of the close of each period.

4. Obligations of the Referrer

Provide accurate and lawful referrals.
Avoid making binding commitments or representations on behalf of the Company.
Maintain confidentiality regarding Company information.

Provide accurate and lawful referrals.

Avoid making binding commitments or representations on behalf of the Company.

Maintain confidentiality regarding Company information.

5. Obligations of the Company

Notify the Referrer of successful conversions of referred clients.
Provide necessary product or service information for accurate representation.

Notify the Referrer of successful conversions of referred clients.

Provide necessary product or service information for accurate representation.

6. Exclusions

Referral fees will not be owed for:

Clients already known to or engaged with the Company.
Referrals obtained through unethical or unlawful means.

Clients already known to or engaged with the Company.

Referrals obtained through unethical or unlawful means.

7. Confidentiality

Both Parties agree to keep proprietary information, trade secrets, and client details confidential, except where disclosure is required by law.

8. Term and Termination

This Agreement shall commence on [Start Date] and continue until terminated by either Party with [X days] written notice.
Termination shall not affect payment obligations for referrals made prior to termination.

This Agreement shall commence on [Start Date] and continue until terminated by either Party with [X days] written notice.

Termination shall not affect payment obligations for referrals made prior to termination.

9. Independent Contractor Status

The Referrer acts as an independent contractor and not as an employee, partner, or agent of the Company.

10. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State/Country].

11. Entire Agreement

This Agreement represents the entire understanding between the Parties and supersedes all prior discussions or agreements related to referrals.

Signatures

Company: ___________________________ Date: _________

Name/Title: [Full Name, Title]

Referrer: ___________________________ Date: _________

Name/Title: [Full Name, Title]

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Referral Agreement Template: Commission, Leads and Term

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Referral Agreement Template — quick answers

Reviewed July 2026 Free download, PDF & DOCX

What is a Referral Agreement?

A Referral Agreement is a contract between two parties — usually a business and a referrer — where the referrer introduces new clients or opportunities to the business in exchange for a referral fee or commission.

Why is a Referral Agreement important?

It ensures transparency by defining when fees are earned, how they are calculated, and when payments are due. This helps prevent disputes and promotes trust between businesses and their referral partners.

When should you use a Referral Agreement?

Use a referral agreement whenever you want to establish a formal relationship with individuals or companies who introduce clients, especially in industries like real estate, consulting, software, or professional services.

What should a Referral Agreement include?

It should specify the scope of referrals, referral fees, payment terms, reporting obligations, confidentiality, termination provisions, and governing law.

Does a Referral Agreement create a partnership?

No — unless specifically stated, a referral agreement does not create a legal partnership, joint venture, or employment relationship. It only governs referrals and compensation.