Ethical Referrals in Matchmaking: A Guide for Professionals

Ethical referrals in matchmaking are a cornerstone of collaboration in our industry. They foster trust, build networks, and ensure clients receive the best possible service. But referrals must be handled with care to maintain ethical standards, professionalism, and compliance with consumer protection laws. In this guide, we’ll explore the dos and don’ts of referrals and share practical tips for handling them responsibly.

Disclose Referral Fees to Clients

Transparency is a foundational principle in matchmaking. If you receive or pay referral fees, this must be disclosed to the client. The most effective way to do this is through your Terms of Use or service agreement. Clear disclosure not only satisfies consumer protection requirements but also builds trust and demonstrates your commitment to ethical practices.

For Matchmakers Receiving Referrals

When you receive a referral, professionalism and respect for your colleague are key.

• Acknowledge the Referral Promptly: Let your colleague know you’ve received the lead and appreciate their trust. This simple step fosters goodwill and sets the tone for collaboration.
• Keep Your Colleague in the Loop: Provide a brief update on whether you connected with the lead. Transparency builds trust, even if the client decides not to move forward.
• Pay Referral Fees Promptly: Once a client signs with you, send the agreed referral fee within the timeframe you’ve established in writing (e.g., within 10 days). Prompt payment reinforces your reputation as a reliable partner.

For Matchmakers Sending Referrals

When referring a client, you are responsible for ensuring the process is smooth and respectful for both the client and the receiving matchmaker.

• Price-Prep the Client: Before making the referral, discuss pricing expectations with the client. This prevents surprises and helps ensure alignment.
• Confirm Program Alignment: Verify that the receiving matchmaker has a program or offering consistent with the client’s needs and budget.
• Refer to Trusted Practitioners: If you’re unfamiliar with a matchmaker’s work, consider referring the client to the Worldwide Referral Network (WWRN). The WWRN specializes in connecting clients with vetted, ethical practitioners. If they successfully place the client, the referral fee is typically shared 50/50. If no suitable practitioner is identified, WWRN will let you know promptly.

Referral Fees: What You Should Know

• Don’t Inflate Client Fees: It’s considered unethical and potentially deceptive to raise prices just to offset referral costs. Fees charged to clients should remain consistent regardless of referral arrangements.
• Refunds and Referral Fees: Refund obligations, if any, depend on applicable laws and the service agreement between the client and the servicing matchmaker. Referral fees are not typically refundable, since the referring matchmaker has already fulfilled their role by introducing the client.

Tips for Ethical Referrals

• Vet Clients Responsibly: Ensure the client is an appropriate fit for the receiving matchmaker’s services, while respecting privacy, non-discrimination, and consumer protection laws.
• Establish Clear Agreements: Agree on referral terms in advance, including the fee percentage, payment timeline, and communication expectations. Document these terms to avoid misunderstandings.
• Communicate Openly: Keep both your client and your colleague informed at each stage of the process. Transparency strengthens professional relationships and enhances client satisfaction.

The Role of the Worldwide Referral Network (WWRN)

The WWRN is a valuable resource for matchmakers who want to ensure referrals are handled professionally and ethically.

• Finding the Right Practitioner: WWRN helps connect clients with vetted matchmakers who are aligned with their needs.
• Shared Referral Fees: When WWRN facilitates a placement, the referral fee is typically split 50/50.
• Timely Updates: If WWRN cannot identify a suitable practitioner, it will inform you immediately so that other options can be considered.

Moving Forward with Integrity

Referrals are an essential part of the matchmaking industry, but they must be handled carefully to protect clients, colleagues, and your reputation. By disclosing referral fees, documenting agreements, acknowledging leads, and paying fees on time, you not only build stronger relationships—you also protect yourself from potential compliance concerns.

When in doubt, lean on trusted resources like the Worldwide Referral Network. By practicing transparency and integrity, we can continue to raise the standards of professionalism across the matchmaking industry.