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Referral agreements are used by and between companies or individuals where either one of them introduces one or more (prospective) clients or channels to the other, in exchange for a commission for the effort done. With a referral, it is meant a recommendation; a request; or an action of providing testimonials about a certain person, business, services or products.
A referral agreement discusses the response to requests and references to the referral forms that were sent to you. It consists of information that states the conditions that determine this referral. Often the following conditions are a point of discussion: how to define a decent referral fee percentage? And will this Referral percentage be calculated over the gross or net profit, or the project turn-over? This agreement can be used to set terms between a company and a referral partner that will be earning a commission on the sales of services or products to (prospective) customers. These are good questions to discuss with the company that will start cooperation due to the fact you are an intermediary that introduced them to each other.
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