Mutual Referral Agreement

The Mutual Referral Agreement is entered into by two parties who agree to refer potential clients to each other. It is often signed by people who work in similar fields or provide related services, such as marketing and graphic design, catering and wedding decoration, and so forth.

The agreement outlines the responsibilities of both parties and the conditions in which they should refer potential clients. The most important part of the deal is perhaps the referral fee. You could set a fixed price for every client recommended or make it a percentage of the amount spent with the recommended party.

The Mutual Referral Agreement acts as a reminder of all the rules established. It helps you to avoid situations where the other person ignores their part of the bargain. In short, the agreement formalizes everything.

Depending on your state, a Mutual Referral Agreement may also be known as:

• Commission Agreement
• Business Referral Agreement

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