Disclosure means telling a customer, before they make a decision, that a recommendation comes with a business relationship, and whether either business benefits. One or two plain sentences are enough. Done early and calmly, it makes a recommendation more credible, not less.
This guide covers why disclosure matters, what to say in three places, the electronic message rules to read before following up, and how to keep partner links on the right side of Google's policies. It is business guidance, not legal advice.
Why disclosure protects you
A referral works because the customer trusts the person recommending. That trust assumes the recommendation is in the customer's interest. If they later find out you were paid, or that you only ever recommend one firm because of a deal, the trust breaks, and it breaks for you, not just your partner.
Think about how a complaint plays out. A customer is unhappy with a partner's work, mentions it to a friend, and the friend says, "Did you know they pay referral fees?" Now your name is attached to a bad job and an arrangement that looks hidden. If you'd told the customer at the start, the same story reads very differently: "They told me upfront they work together. The job didn't go well, and they helped sort it out."
Disclosure also helps with partners. When both sides agree to tell customers, neither is tempted to oversell the other.
What counts as a relationship worth disclosing
Disclose whenever any of these is true:
- you receive or pay a fee, discount, gift or thank-you for referrals
- you have a standing agreement to recommend each other
- you share ownership, family ties or staff with the business
- you recommend only that business for a type of work, by agreement
When none applies and you are simply naming someone you've seen do good work, saying so is still courteous: "I've no connection with them; I've just seen their work."
What to say: three templates
Each template uses placeholders. Replace them with your own details and adjust the tone to sound like you.
On the phone or in person
"For the [type of work], we often recommend [Partner business]. Just so you know, we have a referral arrangement with them, [and we receive a thank-you if you go ahead / and no money changes hands]. You're welcome to get other quotes, and we'll work with whoever you choose."
Say it before you give their contact details, not after the customer has booked.
In a written quote or job summary
"Next steps: for [type of work], you may wish to contact [Partner business]. [Your business] has a referral relationship with [Partner business]. [Your business receives a referral fee if you hire them / No fee is involved.] This recommendation is optional and does not affect our price or warranty."
Keep it in the same font size as the rest of the quote. Fine print defeats the purpose.
On your website
"We work regularly with a small number of local businesses whose work we trust, including [partner types]. Some of these relationships involve referral thank-yous; when they do, we'll tell you before you decide. Referred customers always get the same pricing and service as everyone else."
This belongs on a single, clear partner page, not scattered across the site.
Following up by text or email: read the rules first
Referral relationships often lead to a text or email to someone who hasn't contacted you yet, and Canada's anti-spam law applies to commercial electronic messages. As of October 2026, section 4 of the federal Electronic Commerce Protection Regulations sets out a referral exemption, and it is narrow:
- it covers only the first commercial message sent after a referral
- the person who made the referral must have a qualifying relationship both with you and with the recipient
- the message must give the full name of the person who made the referral
- it must say it is being sent because of the referral
After that first message, the normal consent rules apply. We summarise; we don't give compliance advice. Read the regulation, check the federal government's own guidance on the anti-spam law, and ask a lawyer if you plan to build a process around referral messages.
The simplest approach many partners use is to avoid the question entirely: give the customer your details and let them make contact, or ask the customer's clear permission before passing their details on.
For consumer-protection questions in BC more broadly, Consumer Protection BC is the provincial body to start with.
Partner links and search: keep them honest
Many owners hear "partnership" and think "backlinks". Resist that. Google's spam policies list buying or selling links for ranking, excessive link exchanges and partner pages built only to cross-link as link spam. Sites that rely on those tactics risk losing visibility.
Practical rules for partner links:
- Link to a partner only where it genuinely helps a reader, such as on your partner page.
- If any payment, discount or exchange is attached to a link placement, mark it with rel="sponsored", as Google asks.
- Never agree "you link to me, I'll link to you" as a deal in itself.
- Don't put blocks of partner links in a footer or sidebar on every page.
- Judge partnerships by referred jobs, not by any effect on rankings.
A disclosure checklist
Before a new partnership starts, check each item:
- ☐ The written agreement says how customers will be told.
- ☐ Phone wording is agreed and every staff member who takes calls knows it.
- ☐ Quote templates include the disclosure line.
- ☐ The website partner page explains the relationships.
- ☐ Any fee is recorded in your tracking and paid from the record.
- ☐ Follow-up texts and emails respect the anti-spam rules, or the customer makes first contact.
- ☐ Partner links, if any, help readers and are marked correctly.
Common mistakes
- Disclosing after the booking. Too late to count.
- Vague wording. "We partner with them" leaves customers guessing. Say whether anyone benefits.
- Different stories from different staff. Write the wording down and use it every time.
- Assuming no rules apply. Some trades and professions have their own. Check yours.
- Treating disclosure as a one-off. If the arrangement changes, update the wording everywhere.
What to do next
Write your own three templates this week, using the placeholders above. If you'd like help drafting the agreement behind them, our written terms and disclosure service does that with you, and the FAQ answers the most common follow-up questions.
Frequently asked questions
Do I need to disclose if no money changes hands?
It's still good practice to say you work with the business regularly. Customers deserve to know a recommendation comes from a relationship rather than a neutral opinion.
Won't disclosure make customers suspicious?
Rarely. Most customers appreciate the honesty and many take it as reassurance that you've worked with the business before. Suspicion comes from discovering an arrangement later.
Is this guide legal advice?
No. It describes business practice and links to official sources. Your trade or regulator may have its own rules; read them yourself and ask a lawyer about anything binding.
Can I put partner logos on my website?
Only with permission and only for partners you actually recommend. A short explanation of how the relationships work is more useful than a row of logos.