Written referral terms put on paper what you and a partner have agreed: which jobs get passed along, how fast each side responds, and whether any fee, discount or reciprocal promise is involved. The disclosure line makes sure the customer knows about that arrangement. We draft both in plain language for your lawyer to review; we don't give legal advice, and as a marketing service we never do trade work ourselves.
Why write it down at all
Most referral relationships begin with a conversation at a job site. Six months later, nobody remembers exactly what was said. One owner thinks the thank-you was 10%, the other remembers a gift card, and the customer had no idea money was involved. That's how good relationships sour.
A written page fixes three things:
- Clarity between partners. What counts as a referral, which jobs are in scope, and what happens if one side can't take the work.
- Fairness to customers. People can weigh a recommendation properly when they know what's behind it.
- Continuity. If a partner sells their business or a key person leaves, the arrangement doesn't vanish with them.
What Canadian guidance says about connections
The Competition Bureau's guidance on influencer marketing and the Competition Act lists payments, commissions, free products or services, discounts and personal or family relationships as examples of connections that should be disclosed when someone promotes a business. It also says disclosures should be prominent and in plain language, not buried. In a January 2024 release, the Bureau warned that businesses could be liable for reviews that leave a false or misleading impression, including reviews by employees who don't disclose their connection.
That guidance is written mainly for online promotion, but we apply the same spirit to every referral: if there's a connection, say so. We summarise; we don't interpret the law for you. Confirm what applies with your lawyer, as of October 2026.
What a typical draft covers
- The parties, by business name, and who the day-to-day contact is on each side.
- Scope: the kinds of jobs each side will pass along, and any jobs that are excluded.
- Response standard: for example, contact within one business day and a note back to the referring partner when a job is booked or declined.
- The arrangement: none, reciprocal referrals only, a fixed thank-you, a percentage, or a customer discount, with when and how it's paid.
- Disclosure: the exact sentence the referring partner uses, and where it appears (in person, on a quote, in a text or on a referral landing page).
- Customer care: what happens if the referred customer is unhappy, and who calls them.
- Records: how referrals are logged, usually through referral tracking.
- Ending it: notice either side gives, and what happens to referrals already in progress.
Example disclosure lines
These are templates, to be adapted and reviewed:
- "We often recommend [Business name] for [type of job]. We have a referral arrangement with them: [describe it in one line]."
- "[Business name] and our company refer customers to each other. No money changes hands."
- "If you book with [Business name] through this link, they give you [discount] and pay us a referral thank-you."
Notice that each one names the arrangement in ordinary words. Phrases such as "trusted partner" or "preferred provider" tell the customer nothing.
Timeline and how it's measured
A first agreement usually takes two to three weeks: one meeting with you, a draft, a meeting or call with the partner, a revised draft, then your lawyer's review. Each further agreement goes faster because the structure exists.
We measure success plainly. Every active partner has a signed page, every referral with an arrangement behind it has a disclosure the customer saw, and every payment matches the referral log at quarter end.
Mistakes to avoid
- Paying for referrals you can't trace. If a fee is involved, the tracking must be clean enough that both sides agree on the count.
- Hiding the arrangement in fine print. If the customer wouldn't notice it, it isn't really disclosed.
- Asking partners for reviews in return. Reviews must reflect real experience, and trading them is exactly what the Bureau warns about.
- Adding link requirements. Requiring a partner to link to you for search purposes is a link scheme. Our guide on putting referral terms in writing goes deeper.
Plan levels and what they include are on the pricing page.
Frequently asked questions
Are you writing a legal contract?
We write a plain-language draft that captures the business terms you and your partner have agreed. It isn't legal advice. A BC lawyer should review it and turn it into whatever form they recommend.
What needs to be disclosed to customers?
Our working rule is simple: any payment, discount, free service, or two-way referral promise behind a recommendation. The Competition Bureau describes these kinds of ties as material connections. Your lawyer can confirm what applies to you.
What if we only recommend each other with no money involved?
A short written note of what you've agreed still helps, because memories differ. Many owners still mention the relationship to customers, which tends to build trust rather than weaken it.
Can a realtor or accountant pay me a referral fee?
Possibly not. Regulated professions often have their own rules on referral fees. Ask the professional to confirm with their regulator before you agree to anything.