Client Referral Fee Agreement

Affiliate understands that corporate customers pay in accordance with contracts entered into by companies and customers. In return for a returned customer, the Affiliate is entitled to [NUMBER] percent of the initial contractual value paid to the Affiliate within [NUMBER] days after the initial contract was executed by the company and the company`s customer, if it exists, as recommended by the Affiliate. At any time, the Entity has the right to pay the sums that the Affiliate owes to the company, now or thereafter, with amounts that may be due or payable to the Affiliate in accordance with this Agreement. Your accountant can advise you on how to approach things financially, including help with the legal deduction for transfer fees and other referral rewards. You can also recommend how Man monitors payment payments, including options in your accounting software, to optimize the calculation and payment process. Speaking of which… If you`re already paying sales commissions, the total net effort for the reference activity is probably similar to what you pay today for outgoing prospects – because the recommendations are incoming leads and agencies tend to pay a lower commission for incoming leads. For example, you can pay 10% for outgoing leads or 5% for incoming leads. In this case, you can pay 5% to the referent plus 5% to your seller who completes the financial statements. B. Both parties wish to conclude this agreement, as the Company pays the Affiliate a fee (as described below) for each customer of the company who is referred by an Affiliate to the Company, subject to the terms and conditions of this Agreement; _______________________________________________________________________. The affiliate is able to direct potential customers to the company.

When an employee of a current client makes an introduction, a conflict of interest arises to pay a commission. What for? Because they now have an advantageous financial agreement with the agency, which tarnishes their ability to manage you impartially (in their role as “agents” of their employer). The exception? This would probably not apply if the customer is the sole owner of the other business. Your accountant can advise you accordingly. But I recommend you structure the agreement (and your calculations) on the basis of revenue, not on contractual income. In other words, payments are based on when you receive the money. You must assess the situation individually, including the assessment of the credibility of the referent.

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