How do I disclose referral fees to coaching clients?

The short answer

Disclose in writing, before the client buys, in plain words: who pays you, how the fee is calculated, and that the client may choose another option. Put a standing clause in your coaching agreement and repeat it when you recommend the tool. ICF's Code of Ethics (standard 3.8) and the FTC's Endorsement Guides both expect this.

What a good disclosure contains

The ICF Code of Ethics, revised April 1, 2025, asks coaches to disclose to clients the compensation and benefits that have been or will be paid or received for referrals (standard 3.8). It does not prescribe wording, so use the most demanding standard you are likely to meet. California's Board of Accountancy, which regulates CPAs rather than coaches, sets a useful template for permitted commissions: in writing, clear and conspicuous, signed by the client, stating the amount or how it is calculated, who pays it, and the relationship between the payer and the advisor.

Borrowing that template, a complete disclosure answers five questions:

Who pays you? Name the company.
How much? The rate and what it is calculated on, for example "10% of your monthly subscription fees."
For how long? As long as you pay, or for the first year, per the program's terms.
Does it change the client's price? Say so either way.
What are the alternatives? The client should know they can choose something else, or nothing.

Disclose in three places

In the coaching agreement. Add a standing clause so referral fees are never a surprise:

From time to time I may recommend products or services from other companies. Some of those companies pay me a referral fee if you buy. I will tell you when a recommendation involves a fee, what the fee is, and what other options you have. You are never obligated to buy anything I recommend.

At the moment of the recommendation. Repeat it in the conversation and in the follow-up email, close to the link:

I'd recommend looking at [product] for your outbound. Full disclosure: I'm a referral partner and they pay me 10% of your monthly subscription if you sign up through my link. It doesn't change your price. If you'd rather, I can also walk you through [alternative].

In anything public. For posts, newsletters and podcasts, the FTC's Endorsement Guides apply. The FTC's guidance says a commission is a material connection that should be disclosed clearly and conspicuously, as close to the recommendation as possible. It gives "I get commissions for purchases made through links in this post" as example wording, and says "paid link" next to a link should be adequate. A "disclosure" page linked from the footer, a comment under the post, or "affiliate link" on its own is not enough.

Common mistakes

Mistake	Why it fails	Do this instead
Disclosing only after the client has bought	The client could not weigh it when deciding	Disclose before or alongside the recommendation
"I may receive compensation"	Too vague to be meaningful	Name the company and the rate
Disclosure buried in the engagement letter only	Easy to forget months later	Repeat it each time you recommend
No alternative offered	Looks like the fee chose the tool	Name at least one other option
Treating a sponsor and a client the same	In sponsored coaching, the payer may also need to know	Disclose to both client and sponsor

Special cases

Sponsored engagements. When an employer pays for the coaching, the ICF code's conflict-of-interest standards (3.1–3.3) ask you to discuss the implications of multiple relationships with all parties. Tell the sponsor as well as the individual client.

CPAs and other licensed advisors. Disclosure may not be enough. The AICPA Code (1.520) bars commissions on products recommended to audit and review clients, and requires disclosure of any referral fee you accept; California bars licensees from accepting a fee solely for a referral. Check your state board before you disclose a fee you may not be allowed to take.

Group programs and workshops. Say it out loud and put it on the slide with the link. One disclosure per recommendation is the safe rule.

Where SalesARC fits

If you join the SalesARC referral partner program, the numbers for your disclosure are simple: SalesARC pays you 10% of the recurring monthly fees of the customer you refer, and one-time fees such as the Playbook build are excluded. Use the wording above with those numbers, and send your client the program terms if they ask. Details at SalesARC Referral Partners.