The Sales Referral Agreement serves as a crucial document for businesses looking to expand their customer base through formal referral partnerships. This agreement, governed by U.S. law, is particularly important when establishing structured referral programs that involve monetary compensation. It protects both parties by clearly defining the referral process, compensation structure, and legal obligations while ensuring compliance with relevant federal and state regulations. The agreement is commonly used across various industries and can be customized to address specific compliance requirements, particularly in regulated sectors.
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1. Parties: Identifies all parties to the agreement, including legal names and addresses
2. Background/Recitals: Explains the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Referral Arrangement: Details the core mechanics of how referrals will be made and processed
5. Compensation: Specifies referral fees, payment terms, and calculation methods
6. Term and Termination: Defines agreement duration and termination conditions
7. Confidentiality: Outlines handling of confidential information
8. General Provisions: Standard boilerplate clauses including governing law, notices, etc.
1. Territory Restrictions: Defines geographical limitations on referral activities when referrals are to be limited to specific regions
2. Exclusivity: Establishes whether the referral arrangement is exclusive, used when parties want to establish exclusive referral rights
3. Marketing Guidelines: Rules for marketing and promoting the referral relationship, used when referrer will actively market the recipient's services
4. Compliance Requirements: Industry-specific compliance obligations, included when operating in regulated industries
5. Data Protection: Specific provisions for handling personal data, used when referrals involve sharing personal information
1. Fee Schedule: Detailed breakdown of referral fees and commission structures
2. Referral Process: Step-by-step process for making and tracking referrals
3. Approved Marketing Materials: Pre-approved marketing content and guidelines
4. Compliance Checklist: List of required compliance steps for each referral
5. Contact Information: Key contacts for both parties including escalation procedures
Relevant legal definitions
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Relevant Industries
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