Service Agreements & Contracts

Free Referral Agreement Template (PDF)

A referral agreement is a contract in which a business agrees to pay a referral partner a fee for introducing new customers. It defines what counts as a valid referral, how much the fee is, when it's paid, and the rules the partner has to follow when recommending the business.

When to use it

Use a referral agreement when another business, a past client, or an individual sends you customers in exchange for a fee: an agency referring clients to a developer, a consultant referring to an accountant, or a customer referral program. Writing it down prevents the most common dispute: whether a customer was really referred, or was already talking to you.

What's typically included

• Company, partner, and effective date
• What qualifies as a referral, including how to register one
• A check that the referral is a genuinely new customer
• A time window for the referral to buy
• One-time or percentage referral fee
• When the fee is paid and refund adjustments
• Warning about referral fees in licensed fields
• Accurate representation and public disclosure of paid referrals
• Independent contractor status
• Confidentiality
• Termination and fees owed afterward
• Signature blocks for company and partner

How to fill it in

• Define how a referral is registered, such as by email or a form, so there's a dated record of every introduction.
• Set the window for a referral to become a customer (90 days is common) and say whether the fee is one-time or a percentage of revenue for a limited period.
• Check Section 4 carefully: referral fees are prohibited or restricted for real estate settlement services, between unlicensed people in real estate in most states, and for lawyers. Don't use this agreement where it would break those rules.
• If the partner will promote you online, the disclosure requirement in Section 5 reflects FTC guidance that paid endorsements must be disclosed clearly.

This template is a general starting point, not legal advice — customize it and have it reviewed for your situation.

Frequently asked questions

Are referral fees legal?

In most businesses, yes. The main exceptions are licensed fields: federal law (RESPA) prohibits kickbacks for mortgage and other real estate settlement services, most states only allow real estate referral fees between licensed brokers, and lawyers generally can't pay for referrals. Check the rules for your industry first.

How much is a typical referral fee?

It varies widely by industry. Many service businesses pay a flat fee per new customer, and others pay a percentage of the first sale or of revenue for the first few months. Choose an amount that still leaves the sale profitable.

Does a referral partner need to disclose they're being paid?

If they recommend you publicly, such as on social media or a blog, yes. FTC guidance requires a clear disclosure of any payment for an endorsement. This template includes that requirement.

Can a referral agreement be signed online?

Yes. Under the U.S. ESIGN Act and state UETA laws, an e-signed referral agreement is as valid as a paper one, and both parties get the signed copy and a certificate of completion.