Having referral partners is a fantastic way to generate leads, increase revenue and help your customers when you can’t.
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.
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
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 suburb, as these vendors are often used on the same day and together.
The makeup artist may often be asked if they know of a reputable photographer, and vice versa.
Rather than word of mouth ‘cross promotion’, the two vendors may go a step further by formalising this relationship and agreeing to take a small commission from all successful referrals. By signing a Referral Agreement, the vendors can access profit from their networks, even when they may be out of work themselves.
Don’t hesitate to email us at [email protected] to find out more about a Referral Agreement.
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