Commission agreement

Pay commission to your business partners under this simple yet flexible commission agreement.

This agreement makes few assumptions about the arrangements giving rise to the commission payment obligation. It may be used, for instance, in relation to commission payments that arise out of the referral of a new customer. The agreement also includes a payment procedure and an audit clause.

If you are looking for an agreement covering an ongoing referral / introduction arrangement in relation to services, see this referral partner agreement instead.

*A licence to use this agreement without the credit/attribution text.

Commission agreement contents

The cornerstones of this commission agreement are three defined terms.

  • “Trigger Event”: the event that will give rise to a payment obligation, for example the referral of a customer during the term of the agreement.
  • “Base Amount”: the underlying amount that will be used in the commission calculation, for example the amount paid by a referred customer during a certain period following the referral.
  • “Commission”: an amount calculated by applying a defined percentage to the Base Amount.

Because of the use of these abstract concepts, this commission agreement is highly flexible, and can be used in a wide range of different circumstances.

In addition to the core obligation to pay commission, the agreement includes a procedure whereby one party must notify the other of the amount of commission due periodically during the term of the agreement. It also includes an audit provision allowing the receiving party to review the calculations of the paying party.

Paid-for versions of this agreement

A paid-for version of this agreement is available on here. The only difference between this free agreement and the paid-for agreement is that the latter does not include the text that identifies the source of the document.

In addition, we publish several variations of this agreement:

Alternatives to this agreement

For a document that relates specifically to customer introductions and covers the relationship between a service provider and a referral partner more generally, see our referral partner agreement.

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