You may use this template for the Referral Fee Agreement if: Taking into account the Intermediation Fee (as defined below) payable only after successful completion of the Services (hereinafter “Discovery”), [Insert Finder Name Here] (“Finder”) of [Insert Finder Address Here] agrees to support [Insert Customer`s Name Here] (“Insert Customer`s Address Here], in Discovery. For the purposes of this Agreement (“Agreement”): An Intermediation Fee Agreement is a typed or handwritten document that describes the relationship between a company and an external source, as well as compensation to facilitate a transaction. An intermediation fee is paid to the person or company that has recognized the possibility of a business and presented it to its customers to the new business partner or customer. It serves as a financial incentive that motivates the researcher to continue to seek new recommendations for his clients. It is highly recommended to make an agreement when looking for references – even if the company and the researcher have been working together for a long time and are willing to grant and accept a favor as a gift, you should always reflect your business relationship in writing. Follow these steps to create a business referral fee agreement: To get a referral fee, you need to find a business or organization that is willing to pay for one. Common scenarios for intermediation fees include: The IRS has been fairly consistent in concluding that intermediary fees are not tax deductible. d. This Intermediary Fee Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supersedes and supersedes all prior agreements, understandings or obligations of the parties, whether oral or written.
This agreement can be signed in return, and each represents an instrument. Copies of signatures are treated as originals. Sometimes valuable business information, potential customers and contacts come from an external source. An intermediation fee agreement describes the relationship and compensation to be expected in a relationship where an incentive is offered in exchange for new prospects or customers. Documenting your agreement on paper will help define the interests of both parties under certain conditions. An intermediation fee contract can also help resolve future disagreements and prevent any presumed uncertainty. This Agreement contains all agreements of the parties with respect to all matters dealt with or referred to in this Agreement, and no prior agreement shall be in effect for any purpose. Who pays the intermediation fees depends on the type of business and the previous agreement. For example, in some cases, the referral fee is paid by the buyer during a transaction. In other situations, the intermediation fees are paid by the seller. In addition, in some cases, referral fees are treated more like a commission than a gift.
In many cases, the referral fee can be considered a gift from one party to another as there is no legal obligation to pay a commission. However, companies that offer intermediation or referral fees should carefully navigate the laws that govern who can receive fees and under what circumstances. Some professions, for example, cannot give or receive gifts from certain types of entities. Lawyers, for example, should not “win” with non-lawyers. Laws regarding gifts and agency fees vary from state to state, and federal laws may not be clear in certain circumstances or within certain professions. Ask a lawyer to guide you further about your particular situation. Depending on the type of agreement, you can get either a percentage of a signed contract or a predetermined amount. For example, $50 for each recommendation.
In some cases, you can`t get paid unless your references actually sign a contract with the company. “Discovery” of Customers by finder will only occur if customers are identified and presented by finder and confirmed in writing by the customer during the retention period (as defined below). The Finder shall not be deemed to have discovered Customers who have been contacted or who have been contacted by the Customer no later than the Effective Date (as defined below), or Customers who subsequently contact the Customer after the Effective Date or who are contacted by the Customer before being identified by the Finder (if any) and presented in writing by the Finder (collectively, “Independent Contacts”). Customer shall attempt to provide the Intermediary with an updated list of independent contacts from time to time, but any delay or failure by Customer to do so will not waive or affect Customer`s rights or impose obligations under this Agreement on Customer. If Finder is entitled to intermediation fees under this Agreement, Finder hereby agrees to indemnify, protect, defend and hold harmless Customer and its affiliates from and against any and all claims, suits, losses, liabilities, damages, privileges, costs or expenses (including, but not limited to, reasonable attorneys` fees and costs) as described, arising from a claim by another natural or legal person for brokerage or intermediation fees. Commissions or similar remuneration related to a business transaction involving a potential investor discovered by Finder. From the effective date of this Agreement and effective date until this Agreement is terminated by either party by providing written notice to the other party at least five (5) days in advance, the Affiliate may, from time to time and in its sole discretion, address certain customers of the Company (hereinafter referred to as “Referred Customers”). .
