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Referral Compensation Agreement
"I need a Referral Compensation Agreement for my software consulting firm based in Ontario, where we'll pay technology recruiters a 15% commission for successfully referring clients that sign contracts worth over $50,000, with the agreement starting January 1, 2025."
1. Parties: Identification of the referrer and the company/recipient of referrals
2. Background: Context of the agreement and general purpose of the referral arrangement
3. Definitions: Key terms used throughout the agreement including 'Qualified Referral', 'Referral Fee', 'Referral Period'
4. Referral Arrangement: Core terms of the referral relationship and scope of services
5. Qualification Criteria: Specific criteria for what constitutes a valid referral
6. Compensation Terms: Structure of referral fees, calculation methods, and payment terms
7. Payment Process: Mechanics of payment, including invoicing requirements and payment timing
8. Term and Termination: Duration of agreement and circumstances for termination
9. Confidentiality: Protection of confidential information shared during the referral process
10. Data Protection: Compliance with privacy laws and handling of personal information
11. Representations and Warranties: Basic promises made by each party regarding their capacity and authority
12. Limitation of Liability: Limits on parties' liability and allocation of risks
13. General Provisions: Standard boilerplate clauses including governing law, notices, and amendment procedures
1. Non-Solicitation: Restrictions on soliciting employees or clients, used when parties have access to each other's business relationships
2. Non-Compete: Restrictions on competing activities, used when referrer has access to sensitive business information
3. Marketing and Promotion: Terms governing how parties can market or promote the referral relationship, used when public promotion is contemplated
4. Training and Support: Requirements for training or support provided to referrer, used in complex product/service scenarios
5. Dispute Resolution: Specific procedures for resolving disputes, used when parties want to specify mediation or arbitration
6. Insurance Requirements: Specific insurance coverage requirements, used in high-risk or regulated industries
7. Compliance with Industry Regulations: Industry-specific compliance requirements, used in regulated sectors
8. Territory Restrictions: Geographic limitations on referral activities, used when territorial exclusivity is granted
1. Schedule A - Compensation Structure: Detailed breakdown of referral fees, commission tiers, and bonus structures
2. Schedule B - Referral Qualification Criteria: Detailed criteria and process for determining valid referrals
3. Schedule C - Reporting Requirements: Templates and requirements for referral tracking and reporting
4. Schedule D - Approved Marketing Materials: Pre-approved marketing content and usage guidelines
5. Appendix 1 - Referral Submission Form: Standard form for submitting referral information
6. Appendix 2 - Service Level Standards: Performance metrics and service level expectations
Authors
Professional Services
Financial Services
Real Estate
Technology
Healthcare
Management Consulting
Insurance
Software and IT
Recruitment
Education and Training
Legal Services
Marketing and Advertising
Business Services
Telecommunications
Business Development
Sales
Legal
Finance
Compliance
Partner Operations
Marketing
Account Management
Revenue Operations
Contract Administration
Business Development Manager
Partnership Manager
Sales Director
Channel Manager
Affiliate Program Manager
Chief Revenue Officer
Legal Counsel
Compliance Officer
Marketing Director
Account Executive
Partner Success Manager
Business Development Representative
Sales Operations Manager
Chief Financial Officer
Procurement Manager
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