Referral agreement template
A referral agreement is a promise to pay someone for sending you customers, written down before the first introduction. It decides what counts as a referral, who gets credit when two people mention the same name, how much the fee is, and when it's paid. This template suits contractors paying past customers, agencies paying partner firms and software resellers. Read it below and send it from SignMaster.
Updated November 5, 2026 · 4 min read
The contract
Gray blanks are yours to fill in before you send. Each signer fills in the blanks in their color.
- You, before sending
- Referral partner
- Company
Referral Agreement
This Referral Agreement (the "Agreement") is made on Agreement date between Company name (the "Company") and Partner name or business (the "Partner"). The Partner will introduce potential customers for these products or services: Products covered.
1. Qualified referrals
A referral is qualified, and earns a fee, only if all of these are true:
- The Partner registered it under section 2 before the customer bought.
- The customer was not already a customer of the Company, or in active talks with it, during the Existing lead months months before registration.
- The customer signs a contract with and pays the Company within Referral window in days days of registration.
If two partners register the same customer, the first complete registration counts. The Company decides whether to accept any customer and on what terms.
2. Registering a referral
The Partner registers a referral by sending the customer's name, company and contact details, with a short note about their need, to Registration email or link. The Company will confirm within Days to confirm a lead business days whether the lead is accepted or already known. The Partner will only pass on contact details with the customer's permission.
3. Referral fee
For each qualified referral, the Company will pay the Partner Referral fee. Where the fee is a percentage, it is calculated on the amounts the customer actually pays, excluding taxes, shipping and pass-through costs, for this period only: Fee basis.
4. Payment and statements
Fees are earned when the Company receives the customer's payment and are paid within Days to pay fees days after the end of the month in which it was received, with a statement listing each customer and amount. Statements go to Statement email. Before the first payment the Partner will provide a completed tax form, such as a W-9.
5. Refunds and clawbacks
If the Company refunds a referred customer, or the customer doesn't pay, the fee for that amount is not owed. Fees already paid on refunded amounts are deducted from the Partner's next payment, or repaid within 30 days if no payment is due.
6. No authority to bind the Company
The Partner is an independent contractor, not an employee, agent or reseller of the Company. The Partner will not sign contracts, quote prices, promise discounts or make statements about the Company's products beyond the materials the Company provides, and will not present itself as part of the Company.
7. Following the law
Each party will follow the laws that apply to referral fees in its industry and location. Where the law requires it, the Partner will tell referred customers that it receives a fee. If a law or licensing rule forbids paying a fee for a particular referral, no fee is owed for it.
8. Confidentiality
The Partner keeps the Company's pricing, customer lists and other non-public information confidential, and uses customer information only to make introductions under this Agreement.
9. Term and termination
This Agreement continues until either party ends it with Notice period in days days' written notice, or immediately if the other party breaks section 6, 7 or 8. Referrals registered before the end remain eligible for a fee for their full referral window; no new referrals can be registered after it.
10. General
This Agreement does not create a partnership, joint venture or exclusive relationship. It is governed by the laws of the state of Governing state, is the entire agreement about referrals, and can be changed only in writing signed by both parties. Electronic signatures count as originals.
Partner details
Partner contact name: Partner contact name Phone: Partner phone State where the Partner is based: Partner state
I understand that I can't sign contracts, quote prices or make promises on the Company's behalf.
Referral partner
For the Company
Opens it in SignMaster as a template you can edit and send.
A starting point, not legal advice. Have a lawyer review it for your state and situation.
On this page
When a handshake isn't enough
Referral deals fail on edge cases. The lead was already talking to your sales team. The customer signed eight months after the introduction. Two partners claim the same client. The customer paid, then asked for a refund. Every one of those is an argument about money with someone you want to keep sending business your way. The agreement settles them in advance, and it reminds the partner that they can't make promises on your behalf.
What the template covers
- Qualified referral: a new customer, not already in your pipeline, who buys within a set window after the introduction.
- Registering a referral: how the partner submits a lead, and that the first registration wins.
- The fee: a flat amount or a percentage of what the customer pays, and on which revenue.
- When it's paid: after the customer has paid you, by a set number of days, with a monthly statement.
- Clawbacks: fees repaid or offset if the customer gets a refund.
- No authority: the partner doesn't sign deals, quote prices or speak for your business.
- Rules and disclosure: both sides follow the law on referral fees, and the partner tells referred customers about the fee where required.
- Term and ending: either side can end it with notice; referrals registered before the end still get paid.
Industries where referral fees are restricted
In some fields, paying for referrals is limited or banned. Section 8 of RESPA forbids fees for referring real estate settlement business, such as mortgages and title services, outside narrow exceptions. Most states let real estate agents pay referral fees only to other licensed agents. Lawyers' professional rules restrict paying for client referrals, and the federal Anti-Kickback Statute covers referrals paid for by federal health programs. If your business is licensed, check the rules before you send this agreement.
Mistakes that cost referral programs
- No referral window. Without one, a lead introduced three years ago can still claim a fee.
- Paying on the signed contract instead of on money received. Pay after the customer pays you.
- A percentage of "revenue" with no limit. Say whether it's the first invoice, the first year or every renewal.
- Letting partners quote prices. A friendly estimate from a partner becomes a promise the customer expects you to keep.
- Forgetting tax forms. Collect a W-9 before the first payment, so year-end reporting isn't a scramble.
How to send it with SignMaster
- 1
Start from this template
Press Use this template. It opens in SignMaster with two signers: the referral partner first, then your company.
- 2
Set the fee and the rules
Fill in the gray blanks: the fee, the window, how leads are registered, the payment timing and the notice period. If different partner tiers earn different fees, keep one copy of the template per tier.
- 3
Send it to the partner
Add the partner's name and email. They enter their business name, their email for statements and their own state, tick that they understand they can't bind your company, and sign. Once you countersign, both copies arrive with the certificate of completion.
- 4
Ask for the W-9 alongside it
Add a blank W-9 to the same envelope, so the tax form comes back signed with the agreement. See how to sign a W-9 online for how that works.
Launching a referral program
When you open a program to all your past customers or trade partners, bulk send puts the agreement in front of everyone on your list at once, one envelope per person, with columns like Referral fee filled per row. Or skip the list entirely: publish the template as a public signing link on your partners page, and anyone who wants to join fills in their details and signs.
Questions? Answers.
Is it legal to pay someone for a referral?
In most businesses, yes. Licensed fields are the exception: real estate settlement services under RESPA, real estate agents in most states, lawyers, and health care paid by federal programs all have limits.
How much is a typical referral fee?
It varies by industry and margin. Many businesses pay a flat fee per new customer; others pay a percentage of the first invoice or first year. Pick an amount you'd pay happily on every deal.
Do I need to issue a 1099 to referral partners?
Often, yes, for payments to people who aren't your employees, once they pass the IRS reporting threshold. Collect a W-9 when the partner joins and ask your accountant.
Who fills in which blanks?
You fill the gray blanks: the fee, the referral window and the payment terms. The partner adds their business name, statement email and state, ticks the box and signs.