Introducers Agreement Template
Introducers Agreement Template – We’ve worked closely with legal experts and proofreaders to come up with a simple referral agreement template that you can use over and over again as you increase your sales.
Referral marketing is a joint venture where a seller of goods or services pays a commission to a third party for each sale. In this context the third party is called referrer.
Introducers Agreement Template
For example, a financial advisor (salesperson) pays a 5% commission to a mortgage broker (referral) for each customer they successfully refer.
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This is a powerful sales strategy because third parties are incentivized to refer leads in exchange for commissions, and the salesperson generates more lead revenue by giving up a percentage of their sales.
A referral agreement is a formal agreement between a seller and a referrer that captures the terms and conditions of how referral sales are measured, paid and aggregated.
Establishing a referral agreement can save you time so you can focus on building valuable business relationships.
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Your referral agreement is a powerful document that challenges you to clarify your marketing channels so you can measure your growth.
Affiliate marketing is an old-school strategy that seems like forever. The problem is that most of these deals are done under schedule or through handshake promises.
The challenge with these loose arrangements is that commission payments can be lost or there is no transparent process to accurately track leads, often resulting in disputes.
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An adjournment agreement keeps everything afloat and is a reference point for holding all parties accountable for what they initially agreed to.
Depending on how much you focus on referral fees as a growth strategy, your contract may be one of your most used business documents.
When a third party expresses interest in your joint venture, you should make sure to use a referral partnership agreement. This can be in person, remotely, or even if you have a fully automated online affiliate program. In each of these cases, you will need to submit your contract to get approval from potential referrals.
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You need to be systematic when integrating referral contracts into your business. Below are some of the best practices we’ve found when developing referral contracts.
If possible, it’s always best to do it face-to-face when submitting your deferral agreements. It doesn’t matter in person or almost. Communicating with partners on this personal level is essential because it helps build relationships, explains how your product/service works, and familiarizes you with the terms of the deal.
Hold a business meeting with your potential partners and get their approval for everything in your contract. This way, you can help manage expectations and limit any confusion in your business relationship. As a bonus, connecting with partners keeps your brand front and center, which will ultimately help generate more sales.
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The most important part of your referral partner agreement is your commission rate. How you determine your income share is based on how you want to run your business and what you can afford to pay per sale.
However, the more specific you can be in your fee structure, the clearer your contract will be. Both salespeople and referrers can start projecting revenue around a referral fee, which incentivizes all parties to increase sales.
Overcomplicated commission structures often create confusion for partners and therefore discourage them. So it helps to keep the commission structure simple with a fixed fee or a fixed percentage for each referral.
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When presenting your referral agreement to potential partners, take the time to explain why you structured the agreement the way you did.
For example, if you have a confidentiality clause about how marketing materials are used and stored, explain why it’s important.
Being transparent in your referral agreement will help you build trust with partners and get valuable feedback on what works and what doesn’t when referring your offers. You can use this feedback to improve your product/service, commission structure and more.
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A referral agreement is not legally binding without the written consent of both the seller and the referrer. Signatures are legal proof that all parties agree to the terms and conditions of the contract.
A referral agreement is rarely exclusive because the nature of the agreement is to grow the sales force by working with as many relevant partners as possible. Exclusivity for both partners makes no business sense unless the product or service has very specific characteristics and audiences.
Although affiliate marketing and referral marketing are used interchangeably, there are some fundamental differences between the two models.
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A joint venture where non-competing companies work together with similar customers to help grow each other’s businesses. For example, a real estate agent may enter into a joint venture with a property stylist, where they can generate more leads by supporting each other.
Referral marketing involves partnering with partners who can refer leads in exchange for a commission regardless of how they get the sale. For example, your own customers can become referral partners as long as they send leads through their network.
We recognize that a change in your referrer relationship may require us to make changes to our template. We have made our contract available in Word so you can make changes as appropriate.
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– This Referral Agreement (hereinafter referred to as the “Agreement”) is dated ______________ (the “Effective Date”), __________________________________________________________________________________________________________ (hereinafter referred to as the “Referrer”) at an address at ______________ (hereinafter referred to as the “Seller”) (collectively referred to as the “Parties”).
– Referrer has connections with ______________ and has agreed to act as an intermediary in finding customers for the seller and its services.
– This Agreement shall enter into force on the date of signature of this Agreement (hereinafter referred to as the “Effective Date”) and shall expire on ______________.
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– At the end of the term of the contract, this contract will not be automatically renewed for a new term.
– The parties hereby agree that Referrer is an independent contractor in this Agreement, where Referrer provides services hereunder and acts as an independent contractor.
– The parties agree that the referrer will issue an invoice to the seller every ______________ days/months.
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– All terms and conditions of this Agreement and any materials delivered during the term of the Agreement shall be kept confidential by the Proposer unless disclosure is required by operation of law.
– The referrer shall not be entitled to use any information provided to him even after the termination of the contract for _______________ years.
– Disclosure or use of such information for any purpose outside the scope of this Agreement or beyond the above exceptions is expressly prohibited without Seller’s prior consent.
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– Recommender may not use Seller’s information for advertising or any other promotional activities without Seller’s written consent.
– The referrer may not use the intellectual property provided by the seller without the written permission of the seller.
– IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING LOST PROFITS) ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS CONSIDERED HEREIN (WHETHER WHETHER IN BREACH OF CONTRACT, TORT, NEGLIGENCE OR OTHERWISE) OR IN CONNECTION WITH THIS AGREEMENT. action) unless related to the direct consequence of negligence or breach of either party.
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– The parties do not indemnify and compensate each other. This also applies to their subsidiaries, agents, officers, employees and/or successors. The parties to this Agreement further agree to indemnify and hold harmless all claims, liabilities, damages, losses, penalties, punitive damages, costs, any reasonable attorneys’ fees and/or costs of any kind or amount. This includes, but is not limited to, the party whose indemnification is due to the negligence or breach of this Agreement, its successors and assigns under the terms of this Agreement.
– This clause shall remain in force for all purposes and even if the contract is terminated naturally or prematurely by either party.
– Any dispute or controversy arising out of or in connection with this Agreement shall be submitted to ______________ (arbitration/arbitration/negotiation) in accordance with and subject to the laws of ______________.
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– If any provision of this Agreement is invalid and unenforceable by a court of competent jurisdiction, the remaining provisions shall be enforceable as intended by the parties.
– This Agreement contains the entire agreement and understanding between the parties relating to the subject matter hereof and all prior agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature relating to the subject matter hereof. The express terms herein shall govern and supersede the execution and/or use of the Agreement inconsistent with any provision herein.
– The parties agree that any changes to this Agreement shall be made
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