A referral fee agreement template is used when a supplier of goods or services wants to engage an intermediary. This intermediary is known as a “referral partner” or finder. In return for a commission, the finder determines potential customers to the client.
The finder’s duty is to discover potential customers by informing them of the goods or services offered by the client. Moreover, he has to share customer details and other relevant information to the client. The referral partner has no additional role other than the customer introduction in the relationship between the client and the customer.
Here are some alternate names for a referral fee agreement;
- Introduction fee
- Reference type
- Business referral agreement
- Client referral agreement
- Commission referral agreement
- Finder’s fee agreement
- Marketing referral agreement
- Partnership referral agreement
Table of Contents
Elements of a referral fee agreement:
While making the agreement, you should include the following elements;
The referrer and the seller of the product or services are two parties here. The effective date, names, and addresses of the referrer and the seller should be mentioned in the agreement. The agreement should also contain the exact business of the seller and the client’s name.
The term contains the exact effective date of the agreement and the ending date of the agreement.
The agreement will instantly end if any party is found to breach the agreement. Furthermore, in case, any of the party wants to finish the contract, then that party has to provide a written notice, indicating the number of days before termination.
Relationship between parties
The referrer is an independent contractor/service provider and under no circumstance will be considered an employee. There isn’t any partnership exist between the concerned parties under the agreement.
Payment and fees
The referrer will get payment amount/commission per referral and the concerned parties must know this. In addition to this, all concerned parties agree that every specific day/month for the referral services they conclude, the referrer will invoice the seller. You may also like Attorney Referral Agreement Form.
The referring party has to keep all the terms and conditions of this agreement and any resources provided given the term of the agreement confidential. After the ending of the agreement for some years, the referring party will not be allowed to use any information given to them.
For any purpose outside the extent of this agreement or beyond the exceptions described in the agreement, disclosing or using this information is explicitly prohibited without the prior permission of the seller.
Limitation of liability
Any indirect, special, consequential, or punitive damages that results from out of or pertaining to this agreement or the transactions it anticipates, no party will be accountable for them.
The parties arrive to an agreement not to indemnity. They don’t hold one another harmless and this is also followed by their affiliates, agents, officers, employees, and/or successors.
According to and subject to the laws of the state, any dispute or difference of any kind resulting of or in connection with this agreement will be presented to arbitration/mediation/negotiation.
In accordance with the laws of the state, this agreement will be governed and interpreted.
The outstanding provisions will remain to be imposed in accordance with the parties’ intention if any conditions of this agreement are found to be null and void and revoked by a court of competent jurisdiction.
Any changes that made to this agreement, the parties concur that they must be in writing, and both parties must sign them to this agreement.
Signature and date
If the parties are agreed to the terms and conditions laid down in this agreement then they affix their signatures on each page of the agreement. For verification, photo identification like social security card or driving license should be provided.
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In conclusion, the referral fee agreement template should be made carefully and keep all the clauses to safeguard the company’s interest as well as clearly explain the rights of the referral partner.