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Referral Compensation Agreement
"I need a Referral Compensation Agreement for my software company to engage marketing agencies in South Africa who will refer corporate clients to us, with a tiered commission structure of 10% for the first year and 5% for renewals, and strong data protection clauses."
1. Parties: Identifies and provides details of the parties entering into the agreement
2. Background: Sets out the context and purpose of the agreement
3. Definitions and Interpretation: Defines key terms used throughout the agreement and interpretation rules
4. Appointment and Scope: Establishes the referrer's role and the scope of referral services
5. Referral Process: Details the mechanism and requirements for making referrals
6. Compensation Terms: Specifies referral fees, payment terms, and calculation methods
7. Obligations of the Referrer: Lists the referrer's duties, responsibilities, and performance standards
8. Obligations of the Company: Details the company's commitments and responsibilities
9. Compliance Requirements: Addresses regulatory compliance, including POPIA and consumer protection
10. Term and Termination: Specifies agreement duration and termination conditions
11. Confidentiality: Protects confidential information shared during the referral process
12. Data Protection: Ensures POPIA compliance in handling personal information
13. Non-Solicitation: Prevents poaching of referred clients or employees
14. General Provisions: Standard boilerplate clauses including notices, entire agreement, etc.
1. Non-Compete: Restricts referrer from competing activities - include when referrer has access to sensitive business information
2. Intellectual Property: Protects IP rights - include when branded materials or proprietary systems are involved
3. Training and Support: Details training provided to referrer - include for complex products/services
4. Marketing Guidelines: Specifies approved marketing practices - include when referrer will conduct marketing
5. Insurance Requirements: Mandates insurance coverage - include for high-risk or regulated industries
6. Regulatory Compliance: Additional compliance requirements - include for financial services or regulated industries
7. Dispute Resolution: Specific dispute handling procedures - include for high-value arrangements
8. Force Majeure: Addresses unforeseen circumstances - include for long-term arrangements
1. Schedule 1: Compensation Structure: Detailed breakdown of referral fees, commission tiers, and calculation methods
2. Schedule 2: Referral Criteria: Specific requirements for qualified referrals and acceptance criteria
3. Schedule 3: Reporting Templates: Standard forms for referral tracking and reporting
4. Schedule 4: Compliance Checklist: Regulatory compliance requirements and procedures
5. Schedule 5: Approved Marketing Materials: Templates and guidelines for marketing communications
6. Appendix A: Data Processing Terms: Detailed POPIA compliance requirements and procedures
7. Appendix B: Service Level Agreement: Performance standards and metrics for both parties
Authors
Financial Services
Professional Services
Real Estate
Information Technology
Healthcare
Insurance
Education
Telecommunications
Business Consulting
Legal Services
Property Management
Recruitment
Software and Technology
Marketing and Advertising
Manufacturing
Legal
Compliance
Sales
Business Development
Marketing
Finance
Operations
Risk Management
Partner Relations
Commercial
Strategy
Account Management
Business Development Manager
Sales Director
Channel Partnership Manager
Legal Counsel
Compliance Officer
Managing Director
Chief Executive Officer
Sales Manager
Marketing Director
Operations Manager
Partner Relations Manager
Account Manager
Chief Financial Officer
Commercial Director
Risk Manager
Partnership Coordinator
Business Strategy Manager
Regional Sales Manager
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