Commission Referral Agreement Template

This commission referral agreement template has 5 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our commission referral agreement template:

COMMISSION REFERAL AGREEMENT This Commission Referral Agreement (the "Agreement") is effective [DATE], BETWEEN: [COMPANY NAME] (the "Company"), a company organized and existing under the laws of [STATE/PROVINCE], with its principal place of business located at: [YOUR COMPLETE ADDRESS] AND: [REFERRER NAME] (the "Referrer"), an individual/company with its principal place of residence/business located at: [COMPLETE ADDRESS] WHEREAS, the Company is in the business of providing [DESCRIPTION OF SERVICES OR PRODUCTS]; and WHEREAS, the Referrer agrees to refer potential clients or customers to the Company in exchange for a referral commission under the terms and conditions set forth in this Agreement; NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties hereto agree as follows: REFERRAL SERVICES Referrals: The Referrer agrees to use their best efforts to refer potential clients or customers (the "Referrals") to the Company who may be interested in purchasing or utilizing the Company's products or services (the "Services"). Acceptance of Referrals: The Company shall have sole discretion to accept or reject any Referrals provided by the Referrer. The Company shall notify the Referrer promptly of any Referrals accepted. COMMISSION AND PAYMENT 2.1 Referral Commission: For each Referral provided by the Referrer that results in a successful sale or contract (the "Transaction") between the Company and the referred client, the Company agrees to pay the Referrer a commission of [PERCENTAGE]% of the total gross revenue generated from the Transaction (the "Commission"). 2.2 Payment Terms: The Commission shall be due and payable within [NUMBER OF DAYS] days after the Company receives full payment from the referred client for the Transaction. The Company shall provide the Referrer with a detailed breakdown of the Commission calculation upon request. 2.3 Commission Period: The Commission applies to payments received by the Company from the referred client within [NUMBER OF MONTHS/YEARS] months/years from the date the Referral was accepted by the Company. Commissions will not apply to any subsequent business from the referred client after this period. 2.4 Payment Method: The Commission will be paid via [SPECIFY PAYMENT METHOD, e.g., bank transfer, check], to the account or address designated by the Referrer. OBLIGATIONS OF THE REFERRER 3.1 Referrer's Duties: The Referrer agrees to provide Referrals in good faith and represent the Company in a professional and ethical manner. The Referrer shall not engage in any conduct that might harm the reputation of the Company. 3.2 No Authority to Bind: The Referrer is not authorized to enter into contracts or agreements on behalf of the Company. The Referrer's role is limited to making Referrals, and all negotiations and agreements with potential clients will be handled directly by the Company. 3.3 Compliance with Laws: The Referrer agrees to comply with all applicable laws and regulations in connection with the performance of its duties under this Agreement. OBLIGATIONS OF THE COMPANY 4.1 Acceptance of Referrals: The Company agrees to evaluate all Referrals promptly and to notify the Referrer of any decision regarding the acceptance or rejection of the Referral. 4.2 Sales and Contract Negotiation: The Company shall handle all negotiations, sales, and service agreements with the referred client. The Referrer is not responsible for any direct sales activities beyond making the initial Referral. TERM AND TERMINATION 5.1 Term: This Agreement shall commence on the effective date and continue until terminated by either Party as provided herein. 5