Referral Agreement Generator
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Understanding Referral Agreements
A referral agreement provides for payment of commission for referred business. It establishes the terms under which a referral partner will introduce prospective clients to a company in exchange for compensation.
Key Components:
- Commission Structure: Percentage of sale, flat fee, or recurring payments
- Qualifying Referrals: Clear criteria for what constitutes an eligible referral
- Payment Terms: When and how commissions are paid
- Non-Circumvention: Protection against bypassing the referral relationship
- Non-Solicitation: Preventing poaching of employees or consultants
- Term and Termination: Duration and exit provisions