A referral fee agreement is a formal document between two parties that lays out the payment arrangements of referral fees when one party proposes leads to another party. This arrangement occurs most often in real estate and sales. This downloadable template covers the key areas of a referral fee agreement and can be modified for your use.
REFERRAL FEE AGREEMENT
This Referral Fee Agreement (the “Agreement”) is made and executed as of this (Day) day of (Month), (Year) (the “Effective Date”) by and among/between:
Principal(s):[Principal.LastName], [Principal.FirstName], (Age), of legal age, currently residing at [Principal.StreetAddress], [Principal.City], [Principal.State], [Principal.PostalCode], [Principal.Country] (collectively the “Principal”); and
Broker(s):[Broker.LastName], [Broker.FirstName], (Age), of legal age, currently residing at [Broker.StreetAddress], [Broker.City], [Broker.State], [Broker.PostalCode], [Broker.Country] (collectively the “Broker”); (each, a “Party” and collectively, the “Parties”)
RECITALS
The Principal is the party who is competent and employs the Broker under this Agreement.
The Broker is the party who is employed as an independent contractor under the Principal’s account who works in and between consumers and the Principal with loyalties to each, under this Agreement.
Principal and Broker are each referred herein as a "Party" and, collectively, as the "Parties."
WHEREAS, in consideration of the above recitals, the representations, warranties, covenants, and agreement stated in this Agreement and in good faith and valuable considerations, both Parties acknowledge the receipt and accuracy of the terms as agreed.
TERMINATION
This Agreement will remain in effect within the agreed period by both Parties unless terminated earlier for valid or just cause by the Principal.
Termination or resignation from this Agreement shall be possible at any given time by providing a written notice thirty (30) calendar days prior to the intended last reporting date.
RELATIONSHIP BETWEEN PARTIES
The Broker is the party employed as an independent contractor under the Principal’s account who works in and between consumers and the Principal with loyalties to each, under this Agreement. He/she will act as the liaison to mediate business between the Principal and the Client(s).
The Broker shall be the point of contact for the Client(s) should there be any necessary coordination directly with the Principal about the products or services provided to the Client(s).
The Broker shall provide the Client(s) with all necessary reports and paraphernalia concerning products and services offered by the company of the Principal.
PAYMENT AND FEES
In consideration of the Broker’s leads and services, the Principal shall compensate the Broker the (insert the number of referral fee, e.g., 10)% worth of commissions of the total value of sales for the period of (insert number of months, e.g., three) months from the date of the first successful sales made by the Broker.
The Principal also agrees to pay the Broker his/her referral fee every (insert payment frequency, e.g., month, quarter, etc.) the amount of (amount) in (currency) (insert payment frequency, e.g., monthly, quarterly, etc.) equivalent and should not exceed the amount of (amount) in (currency) annually.
Payment and fees for all the leads and services rendered by the Broker should be payable via (insert payment type, e.g., check, direct deposit, etc.) under the Broker’s preferred account.
Referral Fee Agreement
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