Typically, an agent is called an earn-out period, which is a given period beginning with the date of a recommendation. If a sale is made before the end of the earn-out period, the commission is earned. You need to decide the duration of the earn-out. 2. Recommendation Agreement. On the effective date of this Agreement, the Partner may, from time to time, refer customers/potential customers to the Company. The company pays the affiliate a fee for these recommendations. 3. Indemnification. The company will pay the ___ affiliate for any successful recommendation, with a successful recommendation being defined as a recommendation that becomes a customer/client of the company. The entity will pay the affiliate ______ for any unsuccessful recommendation if an unsuccessful recommendation is defined as a valid recommendation candidate who will not become a client/client of the company through no fault of the affiliate or entity; and a valid recommendation candidate is a client/potential client who meets the specifications set out in Section 1 above.

The Company pays the Affiliate within 30 (30) days of the date of a concluded recommendation, a concluded recommendation being the commitment of the new client/client or a final measure so that the recommendation does not become a new client/client. The scope of referral rights may be limited. For example, the rights of the expelling party to market the services of the other party may be limited to a given territory. Alternatively or in addition, the types of references may be limited by reference to the types of services to be provided by the party receiving the references. The agreement assumes that each party operates a system for monitoring recommendations. In principle, commissions should only be paid in respect of clients assigned to the relevant party in the referral tracking system. If a client is registered in the referral tracking system for another person at the time of the referral, no commission is paid. It`s a big one.

A qualified recommendation is a business lead that has already been verified and communicated by your agent. In contrast, an uns qualified recommendation can be as little as a name or phone number. If you only want a list of potential interested people, you only need un qualified recommendations. However, if you`re looking for qualified leads, be sure to indicate that. Referral agreements can be complicated and take many forms, but a good agreement will always have some essential clauses. If you write your agreement, be sure to define and answer these key questions: You can choose either a commission percentage on the recommendations they bring, or a certain amount in dollars….