Summary A Reciprocal Commission Agreement records an agreement where parties receive commissions for introducing customers or ‘leads’ to each other. A written contract for lead commission provides a useful tool to set out each party’s rights and obligations, and to agree on the referral commission payments.
Why do I need a Reciprocal Commission Agreement? A written contract is used to record an agreement between two parties who from time to time introduce and refer potential customers to each other in exchange for a lead or introductory commission. A Lead Commission Agreement provides for both once-off and recurring referral commissions earned from ongoing referrals or leads. A commission contract assists you to set out the terms of your collaboration and relationship, including intellectual property, confidentiality, and financial arrangements.
This agreement is intended for situations where the commission arrangement is a reciprocal one. Where one person is referring leads to a person, but not receiving leads from that person, then the Commission Agreement – one way may be considered.
What does the Lead Commission Contract say? The template Lead Commission Contract includes: Parties; Introduction and Definitions; Relationship and Process; Intellectual Property and Confidential Information; Term and Termination; Commission; Roles and Responsibilities; Breach; Dispute Resolution; General.
What does the contract look like? This template commission contract can be printed onto six pages.
What do you need to do to use the template?
- Read the template Commission Agreement to ensure that it suits your requirements. Make changes as required.
- Ensure that all the blanks have been filled in, including details of the commission calculation.
Lead Commission Contracts – what other documents do I need? When you’re entering into a collaboration with a business associate it is recommended that you get a Confidentiality Agreement signed. (Also known as a Non-Disclosure Agreement)
Also known as: Lead Commission Agreement; Referral Commission Agreement; Commission Contract; Introductory Commission Agreement
Also viewed: Commission Agreement – origination of an opportunity
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