What is a Referral Agreement?
A referral agreement is a document that is made for two or more entities. This type of document usually states that these two entities have a formal or business agreement wherein one of them introduces clients or people to the other in exchange for benefits.
How to Make a Professional Referral Agreement?
Like making real estate agreements, partnership agreements, and any other type of agreement-making a referral agreement can involve a lot of work. However, making it isn't extremely difficult. Here are a few tips to make a good referral agreement (it can also be known as a memorandum of agreement) for your company. Scroll down and have a look at this worthwhile read.
1. Know the Parties Involved in the Agreement
When staging referral programs, you have to be aware of the parties that will be involved. You have to know who will be allowed to be part of this referral program—this includes both the company and the referring party. Once you know who they are, it should be easy to create a well-made referral agreement or contract that will surely impress both parties.
2. Set Standards
In order to make sure that the referral agent does not bring in just anybody they can find to the company, you have to set standards in your referral program. Apart from giving the agents an orientation about the qualifications they have to be looking for, make sure that you indicate the standards in your legal document. Doing this also ensures that only the appropriately prepared employees and clients are brought into the company.
3. Create Referral Incentives
Referral programs usually contain referral incentives for the referral agents or the people who are in charge of bringing in new employees and clients. Referral incentives can also be called as referral fees. These pertain to money given to agents for every client or employee they bring in the company. This is a common method elaborate job descriptions and to induce motivation in bringing more people in.
4. Be Detailed
In making a referral agreement, you have to be very particular in the details. You need to be specific in stating what type of clients or employees the company is looking for. Referral programs involve a lot of time, which is a precious asset, so you must also ensure that the efforts of both parties must not be wasted by putting clear guidelines, standards, and work schedules.
5. Recheck the Document for any Errors
Once you have input all the necessary data into the referral agreement, recheck and proofread it to make sure there aren't any errors. As much as possible, avoid making any mistakes. Mistakes will make the document seem unprofessional and unofficial. This may also give a bad impression on potential employees and clients.
6. Go Digital
In a survey held in August 2014, it was found out that 92% of workers in a certain company shared documents and files via email. In another research held in July 2013, it was also found out that the use of electronic or email signatures reduces turnaround times by approximately 80%. Going digital is convenient, eco-friendly, and speedy.