When you’re scaling a business, warm leads can be gold dust. A quick intro to the right person can land you a dream client, seal a big deal, or unlock a whole new market. But if you’re relying on others to open doors for you, it pays to get the paperwork right. That’s where introducer agreements come in. Simple? Yes. But also a common source of confusion, disputes – and compliance headaches if you’re not careful. Here’s what you need to know.

What’s an introducer agreement, anyway?

It’s a contract between:

• the introducer – someone who agrees to connect you with potential clients or customers.

• the business – that’s you, agreeing to pay a fee if that intro turns into something concrete (like a sale or signed contract).

Think of it as a formalised referral: no success, no fee. But when there is success, everyone knows what they’re owed – and why.

‍Why it’s worth caring about

If you’re using third parties to help grow your customer base, a solid introducer agreement helps:

• set boundaries – so the introducer doesn’t make promises you can’t keep.

• avoid disputes – by nailing down what counts as a successful intro and when fees kick in.

• stay compliant – especially under the Bribery Act 2010, and sector-specific rules (hello, FCA-regulated folks).

• protect your reputation – by controlling the message being shared on your behalf.

Put simply, it’s a commercial safety net that keeps growth smart, not messy.

What to include in yours

The best introducer agreements are clear, tight, and tailored. Key things to cover:

• scope – what kind of introductions are we talking about? Clients, suppliers, resellers?

• fee structure – fixed fee? Commission? Percentage of contract value? Be clear and make it workable.

• payment triggers – is the fee due when a contract is signed? When you get paid? Don’t leave this vague.

• exclusivity – can the introducer work with your competitors too?

• term and termination – how long does the agreement last, and how do you exit if it’s not working?

• confidentiality and data protection – especially important if personal data is being shared.

• no authority to bind – make sure it’s crystal clear they can’t sign anything or make commitments on your behalf.

And if you’re in a regulated industry (like financial services, healthcare, or recruitment), it’s worth sense-checking that the arrangement won’t trip any legal or compliance wires.

Common pitfalls to dodge

• overpromising – if the introducer gets too involved in the sales pitch, you could be on the hook for mis-selling.

• woolly wording – ambiguity around when a fee is earned is a classic cause of disputes.

• using the wrong contract – mixing up introducer and agency agreements is a recipe for tax and legal trouble. (Hint: if the introducer is negotiating or closing deals, you probably need something more than an introducer agreement.)

‍The bottom line

Introducer agreements can be a brilliant way to accelerate growth without blowing the budget. But don’t be fooled by their simplicity – they still need proper drafting, clear boundaries, and a good dose of commercial common sense. Got one on your desk that needs reviewing? Or wondering if your referral setup is still fit for purpose? We’d be happy to help you give it a quick health check.