What to keep in mind
Define qualifying contacts, attribution, commission calculation, payment date, duration, exclusions and treatment of repeat sales.
Unclear ownership of a customer lead can create disputes over multiple commissions.
Distinctions often confused
Referring a prospect does not automatically grant agency powers or authority to bind the business.
Frequently asked questions
When is a referral commission earned?
At the clearly agreed milestone, such as introduction or completion of a sale.
Can commissions continue after the contract ends?
Only according to applicable law and appropriately drafted terms.
Informational content. It is not a substitute for professional advice.