This form is a Finder's Fee Agreement. The offerer and the finder agree to certain terms in furtherance of the mutual purpose of solciting customers and marketing the enterprise operated by the offeror. The document provides that the finder is authorized to represent the offerer in locating, soliciting, and selling to potential customers of the offeror.
Referral Fee Agreement Template With Broker
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How to fill out Finders Fee Agreement?
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Parts of a referral agreement Date. The date should appear at the beginning and end of the contract. ... Names and roles of the parties involved. Identify the parties to the agreement. ... Duration of the agreement. State how long the agreement will last. ... Consideration. ... Acceptance.
A Referral Fee Agreement is used when people have knowledge and contacts in a certain field and want to be paid for making successful introductions to others. Most often, a broker will introduce a buyer and seller of goods or services, real estate buyer and seller, or employer and potential employee.
A referral agreement should cover several aspects, such as the scope and duration of the agreement, the referral process and criteria, compensation and payment terms, performance and quality standards, as well as confidentiality and non-compete clauses.
The two main types of referral fees are the flat fee and the percentage fee. The flat fee is the amount that a referrer receives for every successful referral they make, regardless of how much work was done. While with the percentage fee, the referrer gets a percentage of the revenue or sticker price of the product.
Payment type: While finder's fees can be money or gifts, referral fees are always monetary. Payment source: Brokers pay finders directly. For referral fees, the lead broker receives the payment first, then passes it on to the seller who pays the referrer.