To be used when a business is referring new customers to another business. This sort of arrangement is common where a business’ customers may benefit from the services offered by another business. The business may direct (or introduce/ refer) the customer to that business and claim a fee for doing so. This agreement sets out how the arrangement will work. Fees payable are contingent upon the Prospect contracting with the Company as a result of the Introduction made by the Introducer.
Introducer Agreement (one-way) (B2B)
You should consider the following:
- What will the introduction fee be? Will it be a set amount per introduction or a percentage of a sale value? Will this percentage differ depending on value of the sale?
- How will performance be managed?
- What will the Introducer need to do i.e. what are the contractual obligations? Will the Company have control over the Introducer’s activities in this regard and if so how?
- Will the introducer have access to the Company’s client database or will the Company be utilising the Introducer’s client database? Are the Prospects (i.e. target potential customers) pre-determined?
- How important are confidentiality or non-compete provisions for this arrangement?
- What will the introducer be prevented from doing? Bear in mind your reputation management and risks associated from the actions of an Introducer.
- How will you limit your liability in any instance of the Introducer’s negligence?
- Will you need to protect confidential information? How will you achieve this?
- What are the arrangements for termination?
- How will you ensure that the Introducer is only working on your behalf? known as exclusivity.
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