Commission Agreement

This Commission Agreement is for use where a business that supplies goods or services (the Client) wants to appoint an introducer to bring in new customers, in return for a fee or commission, in order to increase sales and grow the Client's customer base.

The data protection provisions in this document have been updated with reference to the UK GDPR.

How the introducer's role works

An introducer differs from an agent. An introducer does not sell the Client's products or services, pass orders on to the Client, or accept orders on the Client's behalf.

Instead, an introducer refers a potential customer on, either by simply informing them of the goods or services the Client provides, or by passing on their contact details.

Once the introduction is made, the introducer has no further role in the relationship between the Client and the customer.

When to use this agreement

This template is for use where the Client does not have a particular customer in mind, but is instead seeking new customers generally, widening its customer base, or selling into a new market. If the Client is targeting a specific customer or type of customer, an Introducer Agreement should be used instead.

This template and the Referral Fee Agreement in this subfolder are less detailed than the other agreements in the subfolder. You may prefer to use one of those other documents instead.

Fees and commission

Under this agreement, the introducer receives a fee or commission for all transactions that occur between any customer they introduce and the Client, within a set period. This differs from the Referral Fee Agreement in this subfolder, which instead provides for a fee to be earned only in respect of the first transaction between the Client and the introduced customer.

Should the introducer fail to introduce new custom, no commission is earned. In this respect, this is a no win, no fee type agreement.

Financial services restriction

This document has not been created in accordance with FCA rules or the Financial Services and Markets Act 2000, and makes no reference or commitment to abiding by them. This agreement is therefore unsuitable for the introduction of clients for financial services, such as insurance products or investment advice.

Clauses and schedules in this agreement

This Commission Agreement contains the following clauses:

• Definitions and Interpretation
• Appointment of Introducer
• Introduction of Prospective Clients
• Obligations of the Company
• Fees and Payment
• Relationship of the Parties
• Non-Competition
• Confidentiality
• Data Protection
• Non-Circumvention
• Termination
• Nature of Agreement
• Notices & Service
• Set Off
• Jurisdiction

It also includes the following schedules:

• Schedule 1: Commission Schedule
• Schedule 2: Product Schedule
• Schedule 3: Each Party's Privacy Notice

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