Referral agreement template
Looking to expand your customer base? Use this free referral agreement template to onboard new referrers quickly and efficiently.
Looking to expand your customer base? Use this free referral agreement template to onboard new referrers quickly and efficiently.
Referral agreements are an important tool when it comes to broadening your customer base and getting your name out there.
Discover how referral agreements work, what goes in them and how to generate them more efficiently in this guide. We've also got a free referral agreement template for you to download so you can get started straight away!
A referral agreement is a formal contract between two parties, typically a business and a referrer, where the referrer agrees to promote the business's products or services to potential clients.
In return, the business provides compensation, usually in the form of a commission, for any successful referrals that result in a sale.
Referral agreements delineate clear expectations, roles, and responsibilities. They detail the terms of the relationship, the method of referral, any restrictions, and the agreed-upon compensation, offering a clear process for both parties.
The aim of a referral agreement is twofold. On one hand, it provides businesses with a way to expand their customer base through word-of-mouth marketing, typically leading to high-quality leads.
On the other, it allows referrers, be it individuals or other businesses, to earn compensation for their promotional efforts.
For businesses, referral agreements bring credibility and a potential increase in customers. For referrers, they offer a clear framework for how and when they will be rewarded for their services.
The management of referral agreements is often a shared responsibility. The company seeking referrals usually drafts the initial agreement, outlining their expectations, referral procedures, and compensation structure.
The referrer, meanwhile, must review, understand, and accept these terms before beginning their promotional efforts.
What a referral agreement looks like and includes can vary depending on the nature of the arrangement. However, it's common for referral agreement templates to include the following sections:
Each referral agreement will be unique and tailored to the specific needs of the parties involved. It's important to ensure that each section of your referral agreement template is clearly worded, comprehensive, and legally sound.
We've established who manages referral agreements, but what does the process involve? Well, the workflow largely depends on the business's approach to referral agreements, and whether they use a referral agreement template.
For businesses that operate without a referral agreement template, the process can be labor-intensive. It involves writing each contract individually, conducting internal reviews, and seeking the necessary approvals.
This workload will only multiply as the company's referral network begins to expand. Before long, legal and commercial teams are buried in low-value contract admin.
Fortunately, it's possible to automate your referral agreements and reduce the manual work required when managing them.
Juro's all-in-one contract management software enables businesses to do just that by offering the following features:
To find out more about how Juro can enable businesses like yours to generate referral agreements at scale, hit the button below to book a demo.
Juro is the #1-rated contract platform globally for speed of implementation.