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Referral Agreement

Establishes how a business compensates another for referring clients or leads.

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Referral Agreement - Establish Clear Terms for Client Referrals and Compensation

A Referral Agreement is a contract that defines how one business will compensate another for referring clients or leads. Your Referral Agreement made in Bind creates clear expectations about the referral process, qualification criteria, and payment terms.

Your Referral Agreement made in Bind will include:

Party Information

Complete details about both the referrer (the party making the referrals) and the company receiving the referrals, including company names, addresses, and registration information.

Referral Services

Clear definition of what constitutes a valid referral, how referrals should be made, and which clients qualify as new referrals, preventing potential disputes about eligible leads.

Compensation Structure

Specific details about how the referrer will be paid, including the percentage or amount of the referral fee, how it's calculated, payment schedule, and payment method.

Exclusivity Terms

Clarification about whether the agreement is exclusive or if both parties can work with other partners, setting expectations about the business relationship.

Duration and Termination

How long the agreement will last, how either party can end it, and what happens to referral fees for existing clients when the agreement ends.

Confidentiality Requirements

Obligations for both parties to keep business information and client details private, protecting sensitive information shared during the referral process.

Governing Law

Which location's laws will apply to the agreement and which courts would handle any disputes. In Bind, you can select your preferred jurisdiction for the agreement.

Standard clauses covering the independent contractor relationship, how changes to the agreement should be handled, and what happens if parts of the agreement are found invalid.

Creating a Referral Agreement through Bind helps formalize relationships with partners who can send business your way or helps you get properly compensated for referring clients to others. A well-structured agreement prevents misunderstandings about payment terms and sets clear guidelines for the referral process. This type of agreement is particularly valuable for service businesses, consultants, and professionals who rely on referrals as part of their growth strategy.

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