What is this introducer agreement template?
The basics: This introducer agreement template sets out the terms between an introducer (sometimes referred to as a referrer) and the contracting company, where the introducer refers or introduces (i.e. identifies to the company as a potential new customer) new customers in return for a fee (usually on a commission basis). It is sometimes known as a sales commission agreement or referral agreement. Find out more by reading these FAQs.
One-way introductions: This introducer contract is for use with one-way referrals/introductions. Where the introductions/referrals are only being made by both parties (on a mutual basis), this mutual introducer agreement template should be used instead.
Why does your business need an introducer agreement template?
If you are the company: If you are the party that introductions are being made to (i.e. who customers are being referred to), you should use this introducer agreement template where you want another company to refer potential new customers to you in order for you to enter into a contract with that customer for the sale of goods or services. Having contractual terms in place will offer protection to your company's brand and reputation when the introducer is promoting your goods and/or services to prospective customers and making introductions. An introducer agreement template can also be a key tool in ensuring that there are proper limits and controls on behalf of the introducer’s ability to act on your behalf (e.g. so they do not have the right to enter into contracts with customers for you, but instead are making introductions only).
If you are the introducer: Clear contractual terms are key to ensure that commission (or fees) are paid when qualifying introductions are made - securing your revenue stream with a contract is key! Without an introducer agreement, a company could argue that no commission (or fees) are due even though it has only contracted with a customer as a result of an introduction made by you. This introducer agreement template allows for different fee and commission structures to be used (e.g. based on a percentage of the net sale price or fixed fee), so it can be tailored to your commercial relationship.
Benefits both parties: Using an introducer agreement template can benefit both parties by formalising the relationship between them. Getting things in writing also reduces the risk of potential future disputes and misunderstandings.
When should I consider using an introducer arrangement?
Grow your business: formal introducer arrangements can be a great way to bring in streams of new work and, ultimately, increase revenue for your business. This could include the following situations, for example:
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Affiliate marketing: in affiliate marketing programs, where individuals or businesses promote another company's products or services and earn a commission for each sale or lead generated through their introduction.
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Freelancers and agencies: freelancers or agencies may introduce clients to other freelancers or agencies in exchange for a introducer fee or commission.
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Online platforms: introducer agreements are common in online platforms where users refer others to join the platform or purchase products/services, often through referral links.
What does this introducer agreement template include?
Key provisions: Docue’s introducer agreement template includes provisions to protect both party's interests, including:
- Fees and payment: this sets out the type of fees due (e.g. commission per contract entered into or a fixed fee) and the payment terms relating to the payment of those fees. It also clarifies what the triggers for payments become due are (e.g. that a contract is entered into with the customer within a defined period of the introduction being made);
- Exclusivity: the introducer agreement template contains options for exclusive, non-exclusive and sole appointments, so there can be no dispute over the basis on which the introducer is being engaged;
- Liability: this provision of the introducer agreement template includes optional financial caps on each party's liability in order to limit potential exposure in the event the other party has a valid contractual claim;
- Scope of activities: you can tailor the scope of the activities that the introducer is expected to undertake (e.g. whether active promotion / advertising of the company's goods and services is required) so that it is customised to your specific needs;
- Introducer obligations: the introducer's obligations can be clearly defined and tailored to your requirements, so it is clear what the introducer has the authority to do under the agreement - this is key to protecting the company's brand and reputation;
- Termination: in the introducer agreement template, you can define each party’s rights to bring the arrangement to an end early;
- Other legal protections: the introducer agreement template also includes the option to include additional legal protections, e.g. in relation to confidential information and intellectual property rights; and Add your own sections: if you already have your own provisions that you would like to include in the introducer agreement template, Docue also gives users the chance to write their own terms.
Read our three top tips for drafting your introducer agreement here.
When can this introducer agreement template be used?
Introductions in the UK: This introducer agreement template is designed to be used in relation to introductions being made in the UK under the laws of England and Wales. Different jurisdictions and countries have different laws surrounding introducers (who may or may not be considered commercial agents), so we would not recommend using this agreement outside the UK.
Different to sales agents: You should not use this document where you want the introducer to have the authority to conduct any negotiations or to enter into contracts on your behalf - in this case, they would be acting as an agent and an agency agreement should be entered into.
Why Docue?
Easy to use: With Docue, you can create a top-quality introducer agreement in minutes. The introducer agreement template includes model clauses designed by business lawyers to help you draft the contract yourself and tailor it to your requirements. If you get stuck along the way, lawyer-drafted guidance notes are there to help you create your bespoke introducer agreement.
Full contract process: Once you have created a contract that is tailored to your business needs, you can send the contract to each of the parties for e-signing using Docue’s e-signature function. After the contract is signed, you can store the agreement in Docue’s storage vault, Docue Drive, to ensure you always have quick and easy access to your contracts in one place.
Set reminders: You can ensure you never miss a contract renewal again by enabling Docue’s handy reminders to notify yourself of the next upcoming deadline.
Sign up with Docue today and create your introducer agreement in minutes.
Tags: introducer agreement, introducer agreement template, introducer, customer introductions, sales commission agreement, finder's fee agreement, introducer contract
