Referral Fee Agreement

This Referral Fee Agreement is for use where a supplier of goods or services (the "Client") wants to appoint another as a referrer of new customers, in return for a fee, to generate more sales and grow the Client's customer base.

How a referrer differs from an agent

A referrer does not sell the Client's products or services, pass orders to the Client, accept orders on the Client's behalf, or supply any goods or services. Instead, the referrer simply informs a potential customer about the Client, or passes on contact details, and has no further role once the referral is made.

When to use this agreement

This template is for use where the Client is not targeting one particular customer, but is simply looking to obtain new customers and widen its client base or sell into a new market. Where the supplier is targeting a specific customer or type of customer, one of the Introducer Agreements should be used instead.

This template and the Commission Agreement are less detailed than the other agreements in this subfolder. The other documents in this subfolder may be more suitable if greater detail is needed.

Fee structure

The agreement can operate on a fixed fee or percentage basis, with payment due on the introduction itself, on the first transaction, or both. The Fee Structure at Schedule 1 also allows for more detailed or complex fee arrangements. The Fees and Payment clause can be structured so that the introducer earns no fee if they fail to introduce any new business.

Not suitable for regulated financial services

This agreement 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. It is unsuitable for the introduction of clients for financial services, such as insurance products or investment advice.

What this agreement covers

The agreement covers the appointment of the introducer, introduction of prospective clients, obligations of the Company, fees and payment, the relationship of the parties, non-competition, confidentiality, data protection, non-circumvention, termination, the nature of the agreement, notices and service, set off, and jurisdiction. The data protection clause has been updated with reference to the UK GDPR. It includes Schedule 1 (Fee Structure), Schedule 2 (Product Schedule) and Schedule 3 (each party's Privacy Notice).

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