That’s exactly right, @Andaharoo ! referencing causes “stage population”, and so must be specified on a prim in namespace - other prims are going to come into existence below it. It;s important that the Material actually bring its prims onto the Stage, so that you can see what it is and does, and so that you can override values on it.
A relationship does not provide an “anchor point” for stage-population - it’s just a “pointer” i nthe scenegraph, so the two concepts remain separated.