Referral Agreement
A Referral Agreement is essential for a business that is receiving referrals of clients or customers from another business.
4.7 (25 reviews)
Last updated December 20, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This Referral Agreement is essential for a business that is receiving referrals of clients or customers from another business.
It may be worth noting that in some industries and professions some referral arrangements are subject to disclosure obligations. If necessary, get advice from your business adviser, union, professional association or lawyer before negotiating or signing. A lawyer can also review your contract to make sure it is legally enforceable.
The Legal Risk Score of a Referral Agreement Template
Our legal team have marked this document as low risk considering:
- The document allows the Business to unilaterally change the terms of the referral fee with minimal notice, which could potentially impact the financial expectations of the Referrer.
- The agreement does not obligate the Business to accept any referred users, which may result in unpredictability in potential earnings for the Referrer.
- The Referrer is restricted from using various common online promotional methods, which could limit their ability to effectively market and earn referral fees.
Referral Agreement Checklist
Complete your free Referral Agreement with our checklist
Secure Signatures from Both Parties:
Ensure that both the Business and the Referrer sign the agreement to validate its execution.
Issue Notice of Changes:
If there are any amendments to the Referral Fee or other significant terms, ensure that these changes are communicated in writing to the other party as stipulated by the agreement.
Maintain Records of Referrals and Payments:
Keep detailed records of each referral made under the agreement, including the issuance of tax statements and the timely payment of referral fees as outlined in the agreement.
Review Privacy Policy Compliance:
Regularly check that the handling of Referred User information adheres to the Business's Privacy Policy to maintain confidentiality and trust.
Use this Referral Agreement if:
- You would like to incentivise people or businesses for referring users to your business.
- You already receive customer or client referrals from another business, and you want to formalise the relationship.
What does the Referral Agreement cover?
- User referral
- Method of referral
- Fees associated with referral
- Privacy protection
- Restrictions
- Agency
- Term
- Indemnity
- General provisions
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