Referral Fee Agreement Template

REFERRAL FEE AGREEMENT

This Referral Fee Agreement (the “Agreement”) is made and executed as of this (Day) day of (Month), (Year) (the “Effective Date”) by and among/between:

Principal(s):[Principal.LastName], [Principal.FirstName], (Age), of legal age, currently residing at [Principal.StreetAddress], [Principal.City], [Principal.State], [Principal.PostalCode], [Principal.Country] (collectively the “Principal”); and

Broker(s):[Broker.LastName], [Broker.FirstName], (Age), of legal age, currently residing at [Broker.StreetAddress], [Broker.City], [Broker.State], [Broker.PostalCode], [Broker.Country] (collectively the “Broker”); (each, a “Party” and collectively, the “Parties”)

RECITALS

1. The Principal is the party who is competent and employs the Broker under this Agreement.

2. The Broker is the party who is employed as an independent contractor under the Principal’s account who works in and between consumers and the Principal with loyalties to each, under this Agreement.

Principal and Broker are each referred herein as a "Party" and, collectively, as the "Parties."

WHEREAS, in consideration of the above recitals, the representations, warranties, covenants, and agreement stated in this Agreement and in good faith and valuable considerations, both Parties acknowledge the receipt and accuracy of the terms as agreed.

TERM

The Agreement shall commence on the (Day) day of (Month), (Year) until (Day) day of (Month), (Year) as agreed by both Parties.

Upon the end date of this Agreement,(Day) day of (Month), (Year), this Agreement will not be automatically renewed. Both Parties shall be notified via a reminder email ten (10) business days prior to the termination date. At this point, the Parties can renegotiate a new Agreement that includes additional clauses should there be any intention to do so.

TERMINATION

This Agreement will remain in effect within the agreed period by both Parties unless terminated earlier for valid or just cause by the Principal.

Termination or resignation from this Agreement shall be possible at any given time by providing a written notice thirty (30) calendar days prior to the intended last reporting date.

RELATIONSHIP BETWEEN PARTIES

1. The Broker is the party employed as an independent contractor under the Principal’s account who works in and between consumers and the Principal with loyalties to each, under this Agreement. He/she will act as the liaison to mediate business between the Principal and the Client(s).

2. The Broker shall be the point of contact for the Client(s) should there be any necessary coordination directly with the Principal about the products or services provided to the Client(s). 

3. The Broker shall provide the Client(s) with all necessary reports and paraphernalia concerning products and services offered by the company of the Principal.

PAYMENT AND FEES

In consideration of the Broker’s leads and services, the Principal shall compensate the Broker the (insert the number of referral fee, e.g., 10)% worth of commissions of the total value of sales for the period of (insert number of months, e.g., three) months from the date of the first successful sales made by the Broker.

The Principal also agrees to pay the Broker his/her referral fee every (insert payment frequency, e.g., month, quarter, etc.) the amount of (amount) in (currency) (insert payment frequency, e.g., monthly, quarterly, etc.) equivalent and should not exceed the amount of (amount) in (currency) annually.

Payment and fees for all the leads and services rendered by the Broker should be payable via (insert payment type, e.g., check, direct deposit, etc.) under the Broker’s preferred account.

WHEREAS, this Agreement should be signed in counterpart.

NOW, THEREFORE, the Parties who entered this Agreement, the Principal and the Broker(s), acknowledge their part of this Agreement and thereafter affix their signature.

Signature:

ACKNOWLEDGMENT

State/Republic of (Insert Name)

County/City of (Insert Name)

I, [NotaryPublic.FirstName][NotaryPublic.LastName], Notary Public, do hereby certify that (name of individual(s) whose acknowledgment is being taken) personally appeared before me this day and acknowledged the due execution of the foregoing instrument. Witness my hand and official seal this (Day) day of (Month), 20(Year).