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Referral Partner Agreement

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Referral Partner Agreement

This Referral Partner Agreement (the "Agreement") is entered into as of (the "Effective Date"), by and between Company Name: organized under the laws of with its principal place of business at (\"Company\"), and Referral Partner: organized under the laws of with its principal place of business at (\"Referral Partner\").

RECITALS

WHEREAS: Company provides products and/or services described in Exhibit A and seeks to expand its customer base through qualified introductions; and

WHEREAS: Referral Partner has relationships and channels through which it can introduce prospective customers to Company and wishes to do so under the terms set forth in this Agreement; and

WHEREAS: The parties desire to set forth the terms and conditions under which Referral Partner will make introductions and Company will compensate Referral Partner for successful referrals.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1 Eligible Referral. "Eligible Referral" means a prospective client or customer introduced by Referral Partner to Company that (a) is not an existing contact of Company as of the Effective Date, (b) meets Company's objective qualification criteria in Exhibit A, and (c) results in an executed agreement for Company services or products within days of the first introduction.

1.2 Referral Fee. "Referral Fee" means the sum payable to Referral Partner under Section 4 for each Eligible Referral.

2. APPOINTMENT; SCOPE

Company hereby engages Referral Partner on a non-exclusive basis to identify and introduce potential customers to Company in accordance with the terms of this Agreement. Referral Partner will not make any representations or warranties on behalf of Company, nor will Referral Partner have authority to bind Company in any manner.

3. REFERRAL PROCEDURE

3.1 Submission. To qualify as an Eligible Referral, Referral Partner must submit the prospective customer's name, contact information and brief description of need using the following method:

3.2 Verification. Company will review all submissions in good faith and notify Referral Partner in writing whether a submitted prospect qualifies as an Eligible Referral within business days of receipt.

4. COMPENSATION

4.1 Fee. Company shall pay Referral Partner a Referral Fee equal to % of the net revenue actually received by Company from each Eligible Referral during the first months following execution of a revenue-generating agreement, unless otherwise agreed in writing.

4.2 Cap and Minimums. If applicable, maximum payable per referral is $ . No fee is payable for trial orders, refunded amounts, chargebacks, or amounts not actually received by Company.

5. PAYMENT TERMS

Company will pay Referral Fees within days after Company's receipt of cleared funds from the referred customer and Company's verification that no refund or chargeback applies. Payments will be made by the method set forth below or such other method as the parties may agree in writing.

6. CONFIDENTIALITY

Each party acknowledges that during the term of this Agreement it may receive confidential or proprietary information of the other party. Each party agrees to (a) maintain the confidentiality of such information using at least the same degree of care it uses for its own confidential information but not less than reasonable care; (b) use such information solely to perform its obligations under this Agreement; and (c) not disclose such information to any third party except as expressly permitted in writing or as required by law. Confidential information does not include information that is or becomes publicly known other than by breach of this Agreement or is rightfully received from a third party without restriction.

7. TERM; TERMINATION

This Agreement commences on the Effective Date and continues for an initial term of months, and thereafter will renew automatically for successive renewal periods of months unless either party provides written notice of non-renewal at least days prior to the end of the then-current term. Either party may terminate this Agreement for cause upon material breach by the other party if such breach remains uncured after days' written notice; or immediately upon insolvency or bankruptcy of the other party.

Termination does not relieve Company of its obligation to pay Referral Fees that accrued prior to the effective date of termination in respect of Eligible Referrals made during the term and, where applicable, within any post-termination payment window specified above.

8. INDEPENDENT CONTRACTOR; NO AGENCY

Referral Partner is an independent contractor. Nothing in this Agreement creates an employment, joint venture, partnership, agency or fiduciary relationship between the parties. Referral Partner has no authority to enter into contracts or make representations on behalf of Company, and shall not hold itself out as having such authority.

9. INTELLECTUAL PROPERTY

Referral Partner acknowledges that the Company's trademarks, trade names, service marks and other intellectual property are the sole property of Company. Referral Partner shall not use such intellectual property except as expressly authorized in writing by Company and solely for the limited purpose of performing its obligations under this Agreement.

10. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations hereunder. Referral Partner further represents that it will comply with all applicable laws and regulations in making introductions and will not engage in unlawful or unethical marketing practices.

11. INDEMNIFICATION

Each party shall defend, indemnify and hold harmless the other party, its officers, directors, employees and agents from and against any and all losses, liabilities, damages, expenses and costs (including reasonable attorneys' fees) arising out of or resulting from the indemnifying party's breach of this Agreement, negligent acts or omissions, or willful misconduct.

12. LIMITATION OF LIABILITY

IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT, WHETHER IN CONTRACT, TORT OR OTHERWISE, AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. COMPANY'S AGGREGATE LIABILITY FOR DIRECT DAMAGES ARISING FROM OR RELATING TO THIS AGREEMENT SHALL NOT EXCEED THE TOTAL FEES PAID OR PAYABLE TO REFERRAL PARTNER UNDER THIS AGREEMENT IN THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

13. NOTICES

All notices, requests, consents and other communications required or permitted under this Agreement shall be in writing and delivered to the addresses below or to such other address as a party may designate by written notice to the other party.

14. ASSIGNMENT

Neither party may assign or transfer this Agreement or any rights hereunder without the prior written consent of the other party, except that Company may assign this Agreement in connection with a merger, acquisition or sale of substantially all of its assets without Referral Partner's consent. Any purported assignment in violation of this Section shall be void.

15. AMENDMENTS; WAIVER

No modification, amendment or waiver of any provision of this Agreement will be effective unless in writing and signed by both parties. No failure or delay by either party in exercising any right will operate as a waiver of that right.

16. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles.

17. ENTIRE AGREEMENT

This Agreement, together with any exhibits or schedules attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and representations, whether written or oral.

18. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable, such provision shall be modified to the minimum extent necessary to make it valid and enforceable, or if modification is not possible, such provision shall be severed, and the remaining provisions shall remain in full force and effect.

19. COUNTERPARTS

This Agreement may be executed in counterparts, each of which will be deemed an original and all of which together will constitute one and the same instrument. Facsimile or electronically transmitted signatures will be deemed to be originals for all purposes.

Company

Printed Name:

By:

Date:

Referral Partner

Printed Name:

By:

Date:

Enter text✕

What a Referral Partner Agreement Does

A Referral Partner Agreement is a contract that sets terms between a business and an external partner who refers prospective customers or clients in exchange for referral fees or other compensation. The agreement defines scope of referrals, eligibility for commissions, payment timing and method, reporting and tracking requirements, confidentiality and data handling, exclusivity or territory limits, duration and termination rights, and dispute resolution. It can specify compliance obligations for regulated industries and whether signatures may be electronic. Clear terms reduce payment disputes and establish measurable expectations for both parties.

Why a Written Referral Partner Agreement Matters

Using a written Referral Partner Agreement clarifies commission formulas, reduces disputes, protects confidential information, and sets performance expectations. It documents legal relationships, helps ensure regulatory compliance in sensitive industries, and creates an enforceable basis for collecting or paying referral fees.

Why a Written Referral Partner Agreement Matters

Who Commonly Prepares and Signs These Agreements

Typical users who prepare or sign Referral Partner Agreements include marketing managers, channel partners, sales operations, and in-house counsel.

  • Software companies and SaaS vendors running partner referral programs domestically and across states.
  • Independent consultants, brokers, and agencies paid commissions for qualified lead referrals.
  • Legal, finance, and HR teams that review, approve, and track referral arrangements and payments.

Use the agreement to document expectations clearly and to provide enforceable payment and confidentiality terms across jurisdictions.

Representative Roles Who Interact with the Agreement

Marketing Manager

Marketing managers design and operate referral programs, create partner tiers, and approve compensation structures; they coordinate with finance to ensure proper tracking and with legal to align contract language with corporate policies and regulatory requirements.

Channel Partner

Channel partners or affiliates refer qualified leads, maintain contact records, follow qualifying procedures, and expect transparent commission calculation and timely payments; they rely on clear contract terms to evaluate program value and compliance obligations.

Core Clauses to Include in a Professional Agreement

A professional Referral Partner Agreement includes clauses that define parties, referral process, compensation, compliance obligations, data handling, and the mechanics for signing, payment, amendment, and termination.

Parties

Identify each contracting party by full legal name, business type, principal address, and contact person. Specify whether the partner acts as an independent contractor, agent, or reseller for legal clarity and tax treatment.

Referral Scope

Define qualified leads, excluded referrals, territories, duration of referral crediting, and any lead verification steps. Clear scope avoids disputes about what triggers a commission payment.

Compensation

State commission amounts, whether percentage or flat fees, payment timing and currency, treatment of partial sales, and adjustments for refunds, chargebacks, or returns to prevent ambiguity.

Payment Mechanics

Describe invoicing requirements, documentation needed to trigger payments, tax reporting obligations such as W-9 collection, and methods such as ACH, check, or electronic transfer, including cutoff dates for each payment cycle.

Confidentiality

Include non-disclosure obligations, permitted disclosures, data security measures, and limitations on use of confidential lead information; reference HIPAA or other privacy laws when health data is involved.

Termination

Specify termination events, notice periods, post-termination commission handling, survival clauses for confidentiality and indemnity, and dispute resolution and governing law provisions.

Step-by-Step: Complete and Execute the Agreement

Follow these steps to complete a Referral Partner Agreement accurately and reduce back-and-forth for signatures and payments.

  • 01
    Prepare Document: Draft terms, payment rules, and referral definitions clearly.
  • 02
    Collect Info: Gather legal names, EINs, and W-9 forms.
  • 03
    Set Authentication: Choose e-sign method and identity verification level.
  • 04
    Execute & Store: Obtain signatures, deliver copies, and archive securely.

Configuring the Online Signing Workflow

Configure the online workflow fields and authentication options to match your referral program requirements accurately.

Document field or workflow setting name How to set or value to use in the workflow
Signature authentication method and strength Email link, SMS code, or KBA
Field validation rules and required format Use MM/DD/YYYY for dates, enforce email format
Commission calculation field and formula Set formula fields for percentages and minimums
Signed document delivery, retention, and storage settings Email signed copies and save PDF to secure repository

Typical eSubmission Flow for a Referral Agreement

Typical routing and e-submission flow for signing, delivering, and recording a Referral Partner Agreement in a digital workflow.

  • Upload: Upload final PDF or DOCX to the signing platform.
  • Place Fields: Add signature, date, and data fields for signers.
  • Invite Signers: Send email invites or generate signing links with authentication.
  • Record: Capture audit trail, timestamps, and deliver signed copies.

Platform and Integration Considerations

Confirm platform requirements such as supported file formats, integrations, and authentication options before sending agreements for signature.

  • File formats: PDF, DOCX, and fillable forms supported
  • Integrations: Salesforce, NetSuite, Google Workspace availability
  • Authentication: Email, SMS code, or advanced ID verification

Security and Compliance Essentials

Encryption in transit: TLS 1.2/1.3 encryption in transit
Encryption at rest: AES-256 encryption for stored data
Certifications: SOC 2 Type II, ISO 27001, PCI DSS
HIPAA: HIPAA compliant with BAA required
ESIGN / UETA: Compliant with ESIGN and UETA
Authentication: Two-factor and advanced signer authentication options

Common Preparation Pitfalls to Avoid

  • Vague referral definitions lead to disagreements over what qualifies for a commission, increasing litigation risk and delaying payments.
  • Missing tax documentation such as W-9s can trigger backup withholding at 24% and complicate year-end reporting to the IRS.
  • Failing to specify payment timing and handling of refunds or chargebacks causes disputes and may require retroactive adjustments.
  • Using inconsistent signatory authority or unsigned amendments creates enforcement problems and can negate otherwise clear contractual rights.

Penalties and Practical Risks

Payment disputes: Late or missing commissions
Tax penalties: Backup withholding or IRS fines
Breach claims: Contract breach damages and fees
Invalid agreement: Improper signatures may void contract
Privacy fines: HIPAA or state data penalties
Reputational risk: Partner relationship damage

Referral Agreement Compared to a Finder's Fee Agreement

Quick comparison of Referral Partner Agreements versus a Finder's Fee Agreement to clarify scope, payment, and enforcement differences.

Comparison criteria for referral documents Referral Partner Agreement Finder's Fee Agreement
Primary focus of the document ongoing referrals, program terms one-off introductions, simple fee
Payment structure and trigger rules recurring commissions, tiers, performance single flat fee on successful introduction
Complexity, reporting obligations, and controls detailed reporting and tracking minimal reporting required
Typical use cases and industries channel growth and partner programs brokered introductions and m&a leads

eSignature Vendor Snapshot for Referral Workflows

Pricing snapshot of common eSignature providers relevant to managing Referral Partner Agreements and commission workflows, with core feature comparisons.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Bulk Send Available on Business Premium and above Available on many business tiers, verify plan Available in enterprise and select plans Available on higher tiers; check plan details Limited bulk send capabilities across plans
Audit Trail Complete audit trail with timestamps and IP addresses Comprehensive audit logs with signer details and timestamps Audit trail and document history across users Audit history available for signed documents Audit trail includes signer info and timestamps
HIPAA Compliant Yes; BAA available on applicable plans Yes; BAA options for eligible plans Yes; enterprise agreements support HIPAA No; HIPAA support not widely available No; HIPAA support generally not provided
Envelope Cap No envelope cap; unlimited envelopes per plan Limits to 100 envelopes per user per year Caps vary by plan and enterprise agreements Caps and document limits depend on plan Limits depend on subscription level and plan

Practical Use Cases and Outcomes

Two representative examples show how organizations use Referral Partner Agreements to manage commissions, compliance, and partner relationships.

SaaS Partner Program

A mid‑market SaaS vendor established a referral partner program to scale customer acquisition through channel partners, formalizing compensation and tracking in a written agreement.

  • Introduced tiered commissions and monthly reporting.
  • The written agreement reduced disputes, automated commission calculations, and streamlined signings electronically, enabling timely payments and clearer partner expectations without in-person signatures or manual tracking.

Healthcare Referral Network

A regional health services provider used a Referral Partner Agreement with a HIPAA addendum to accept patient referrals while protecting PHI and complying with privacy rules.

  • Added BAA and data handling clauses.
  • Including explicit PHI handling procedures and consent language allowed secure electronic referrals, maintained HIPAA compliance, and clarified payment timing, reducing legal review cycles and accelerating onboarding of new referral partners.

Frequently Asked Questions and Practical Answers

Common questions and concise answers about signing, enforceability, taxation, and termination issues for Referral Partner Agreements.


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