There is a recommendation royalty agreement between a related company that “receives” sales or services to a business in return for compensation. The fees paid to the Affiliate are generally a percentage (%) sale or a flat fee per transaction. Leads can also be included in the agreement, z.B. if the Affiliate sends email addresses to the company that may receive compensation. If you reach a recommendation agreement with other companies, be sure to create a document to protect your interests. Without any others, you risk damaging your company`s reputation by disgruntled customers or poor recommendations. Here are the important clauses that you should use in your proposed recommendation agreement: 6. Termination. This agreement may be denounced at any time by one of the contracting parties after a written notification to the other party. After the termination, the Company will pay the Affiliate all compensation due and due for transfers made before the termination date, but which have not yet been paid. 2.
Compensation. In the event that the recipient enters into an agreement to provide services to an interested person approved in the [LENGTH OF REFERRAL OF FEE] in the years following the referral of the recipient`s referendum, the recipient pays a fee (the “Referral Fee”) equal to [REFERRAL FEE AMOUNT or PERCENTAGE] of the income obtained by the authorized person and received by the recipient under the terms of the agreement. The recommendation fee is considered a full consideration for all references made over the lifetime. Referrer is responsible for all revenues and other taxes related to receiving the referral fee under this and as an independent contractor of the company. The entity is not responsible for the referrer`s expenses in the performance of its obligations under these commitments, unless these expenses have been previously approved in writing by the company. Affiliate understands that corporate customers pay in accordance with contracts entered into by companies and customers. In return for a returned customer, the Affiliate is entitled to [NUMBER] percent of the initial contractual value paid to the Affiliate within [NUMBER] days after the initial contract was executed by the company and the company`s customer, if it exists, as recommended by the Affiliate. At any time, the Entity has the right to pay the sums that the Affiliate owes to the company, now or thereafter, with amounts that may be due or payable to the Affiliate in accordance with this Agreement. Recommendation agreements can be complicated and take many forms, but a good agreement will always contain some essential clauses.