Sales Referral Commission Agreement

Written by: saadmin

1. What is the relationship between you and the party that makes recommendations to you? That`s all! This list is not exhaustive, but it will be a great start. Keep your recommendation agreement simple and easy to understand, and you`ll be on track to grow your customers. 3. Compensation. The Company pays the Affiliate for any successful recommendation if a successful recommendation is defined as a recommendation that becomes a customer/customer of the company. The company pays the Affiliate for any unsuccessful recommendation if an unsuccessful recommendation is defined as a valid candidate for the recommendation that does not become a customer of the entity without the fault of an affiliate or company; and a valid candidate for the recommendation is a potential client/customer who meets the specifications set out in Section 1. The Company will pay the Affiliate within 30 days of a recommendation if a recommendation is the new/client`s commitment or a definitive action that the recommendation does not become a new customer/client. Recommendation agreements can be complicated and take many forms, but a good agreement will always contain some essential clauses. When drafting your agreement, be sure to define and answer these essential questions: the scope of removal rights may be limited. For example, the rights of the referring party to market the services of the other party may be limited to a particular territory. The types of referrals may be limited by reference to the types of services provided by the party receiving the referrals. 2.

Do you receive qualified or unqualified recommendations? Typically, an officer is called a merit period, a set period beginning with the date of a recommendation. If a sale takes place before the end of the production period, the commission is earned. You must decide how long the salary period will be. 6. What revenue will commissions be paid for? You can select either a percentage commission for the recommendations they make or a dollar amount indicated. The agreement provides that each party operates a transfer tracking system. The basic rule is that commissions should only be paid for clients who are charged to the party concerned in the recommendations tracking system. If a client is registered in the recommendation tracking system to another person at the time of the recommendation, no commission is due. This agreement should not be used where the commissions paid relate to the supply of physical goods; nor should it be used for relationships under Agency law.

It is important to state precisely what revenues are submitted to the commissions. Generally, this is a matter of net revenue, which includes money earned less assets and returns, as well as items such as taxes, tariffs and tariffs. In essence, you need to make sure that you pay a commission on your income after all other fees have been taken into account. They should define the relationship as an agreement between independent contractors. You are the sponsor and your referent is the agent. 5. When does the payment period for the transfer expire? If a recommendation from an agent becomes a loyal customer at the end, you need to make sure that you are not stuck paying a commission for their repeated transaction to the agent forever.


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