| Author: | Alasdair Taylor |
| Updated: | 12 January 2023 |
| Length: | 13 pages |
| Notes: | 15 pages |
| Format: | MS Word (.DOCX) |
Referrals are an important source of business in many industries. For instance, many new clients for professional services arrive by way of a referral. Similarly, referrals are an important marketing technique in technology services. The process of supplying referrals can be a business in itself and, where a referral partner is to be remunerated, there should be a written referral agreement setting out the parties' rights and obligations. That is the purpose of this template.
The referral partner agreement provides that the partner is appointed as referral partner for so long as the agreement subsists. The appointment may be worldwide or in respect of a particular territory. During the period of appointment, the partner may have the right to market the services; or alternatively the partner may have an obligation to market the services.
The services provider should maintain a tracking system, under which leads may be attributed to the referral partner. The service provider may however be given the right to refuse to register a lead in respect of the referral partner. In the event that a lead that is attributed to the partner results in a customer contract, then an obligation to pay commission will arise.
Optional provisions included in the referral partner agreement include: a licence of the services provider's trade marks; audit rights for the referral partner; confidentiality obligations; and indemnities protecting one or both parties.
This template is designed specifically for services: it is not suitable for use in relation to referral arrangements relating to contracts for the supply of goods.
