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A Referral Agreement sets out the terms when one party (the referrer) introduces potential clients or business opportunities to another party in exchange for compensation. Under Nigerian business law, these contracts help protect both parties by clearly defining referral fees, commission structures, and the scope of acceptable referrals.

Common in Nigeria's banking, real estate, and professional services sectors, these agreements specify how long the referrer can claim compensation for successful introductions, what constitutes a qualified lead, and any exclusivity requirements. They must comply with Nigerian anti-corruption laws and industry-specific regulations, particularly in financial services where referral relationships need proper documentation.

Use a Referral Agreement when your business wants to build formal partnerships with individuals or companies who can bring you new clients. This is especially vital in Nigeria's financial services, where regulations require clear documentation of referral relationships and commission structures to prevent improper payments or conflicts of interest.

The agreement becomes essential when working with sales agents, business consultants, or industry specialists who regularly connect you with potential customers. It protects both parties by establishing clear payment terms, defining what counts as a successful referral, and ensuring compliance with Nigerian business laws, particularly in regulated sectors like banking, insurance, and real estate.

• Referral Contract: Basic one-way agreement for single referrers, commonly used by Nigerian small businesses and independent contractors
• Referral Partner Agreement: More comprehensive version for established businesses, including detailed performance metrics and marketing guidelines
• Agent Referral Agreement: Specialized for sales agents and brokers, with specific commission structures and regulatory compliance provisions
• Reciprocal Referral Agreement: Two-way arrangement where both parties refer business to each other, popular among professional service providers

• Business Owners and Entrepreneurs: Establish referral networks to grow their customer base, particularly in Nigeria's competitive service sectors
• Financial Institutions: Partner with agents and brokers to expand their reach while maintaining regulatory compliance with CBN guidelines
• Legal Professionals: Draft and review agreements to ensure enforceability and protection under Nigerian contract law
• Sales Agents and Brokers: Formalize their role in bringing new business to companies in exchange for commissions
• Professional Service Providers: Create networks with complementary businesses for mutual client referrals and growth opportunities

• Basic Details: Gather full legal names, addresses, and registration numbers of all parties involved in the referral arrangement
• Compensation Structure: Define exact commission rates, payment schedules, and any performance targets or milestones
• Referral Terms: Outline what constitutes a valid referral, tracking methods, and the duration of commission claims
• Compliance Check: Review Nigerian industry-specific regulations, especially for financial services and real estate sectors
• Documentation: Prepare reporting templates and tracking systems for referral activities
• Final Review: Use our platform to generate a compliant agreement that includes all essential elements under Nigerian law

• Party Details: Full legal names, addresses, and business registration numbers of both referrer and recipient
• Scope Definition: Clear description of acceptable referrals and qualifying criteria under Nigerian law
• Compensation Terms: Detailed commission structure, payment timing, and conditions for earning referral fees
• Duration and Termination: Agreement length, renewal options, and circumstances for early termination
• Confidentiality: Protection of business information and client data as per Nigerian data protection regulations
• Dispute Resolution: Choice of Nigerian law, jurisdiction, and method for resolving disagreements
• Execution Requirements: Signature blocks, witness provisions, and company seal requirements where applicable

A Referral Agreement differs significantly from an Affiliate Agreement, though both involve business partnerships that generate leads. Here's how these documents serve different purposes in Nigeria's business landscape:

• Payment Structure: Referral Agreements typically offer one-time commissions for successful introductions, while Affiliate Agreements often include ongoing revenue sharing for continued customer engagement
• Marketing Rights: Affiliate Agreements grant broader marketing and promotional rights, including use of company logos and materials. Referral Agreements usually limit promotional activities to direct introductions
• Legal Obligations: Referral partners act as independent introducers with minimal ongoing responsibilities. Affiliates often have continuing obligations for customer support and brand representation
• Regulatory Compliance: Under Nigerian law, Affiliate Agreements require more extensive documentation of marketing activities and consumer protection measures, especially in regulated industries