Mutual referral agreements

When building partnerships with businesses that offer complimentary products or services, it's beneficial to align incentives as much as possible. One way to do that is to extend a mutual referral agreement whereby you promise to pay the partner organization whenever they help close a deal. This gives both sales teams a reason to co-sell the other's offerings and hopefully helps to increase and accelerate both companies' sales.

Because the size of the referral fees will be a relatively insignificant part of either companies' overall performance, to maximize impact, it's best to ensure that the majority of each commission check goes directly to the salesperson responsible for the referral. An extra $1,000 is unlikely to change the behavior of a sales team responsible for millions of dollars in revenue, but it is highly likely to drive different behavior from individuals.