Referral Fee Agreement Template for Indonesia

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Key Requirements PROMPT example:

Referral Fee Agreement

"I need a Referral Fee Agreement for my Indonesian software company to engage independent IT consultants who will refer potential clients to us, with a straightforward 10% commission structure and payment terms of net 30 days."

Document background
The Referral Fee Agreement is a crucial document used when establishing formal referral relationships between businesses or individuals in Indonesia. It is particularly important in business environments where networking and referrals form a significant part of customer acquisition strategy. The agreement provides legal protection for both the referrer and the recipient while ensuring compliance with Indonesian regulations, including Law No. 31 of 1999 on Corruption Eradication and Law No. 36 of 2008 on Income Tax. This document is essential for businesses looking to expand their customer base through referral networks while maintaining transparency and legal compliance in their operations. The agreement typically includes detailed fee structures, payment terms, qualification criteria for referrals, and specific obligations of all parties involved.
Suggested Sections

1. Parties: Identification of the referrer and the company/business receiving referrals, including their complete legal names and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Qualified Lead', 'Referral Fee', etc.

4. Appointment and Scope: Details of the referrer's appointment and the scope of referral services

5. Referral Process: Step-by-step process for making and tracking referrals

6. Referral Fee Structure: Detailed explanation of fee calculations, rates, and payment conditions

7. Payment Terms: Timeline and method of payment, including currency and tax considerations

8. Obligations of the Parties: Specific duties and responsibilities of both the referrer and the company

9. Term and Termination: Duration of the agreement and conditions for termination

10. Confidentiality: Protection of confidential information and trade secrets

11. Representations and Warranties: Legal assurances from both parties regarding their capacity and authority

12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution procedures

Optional Sections

1. Non-Compete: Restrictions on the referrer's ability to work with competitors, include when exclusivity is required

2. Marketing and Promotion: Guidelines for how the referrer may market or promote the company's services, include when referrer will be involved in marketing activities

3. Training and Support: Details of any training or support provided to the referrer, include when complex products/services are involved

4. Intellectual Property: Protection and usage rights of trademarks and other IP, include when branding or IP usage is involved

5. Data Protection: Compliance with data protection laws and handling of personal data, include when personal data processing is involved

6. Force Majeure: Provisions for unforeseen circumstances, include in longer-term or high-value arrangements

7. Insurance: Requirements for insurance coverage, include when referrer's activities pose potential risks

Suggested Schedules

1. Schedule A - Fee Structure: Detailed breakdown of referral fees, commission rates, and calculation methods

2. Schedule B - Referral Criteria: Specific criteria for qualified referrals and evaluation process

3. Schedule C - Reporting Template: Standard format for tracking and reporting referrals

4. Schedule D - Approved Marketing Materials: List of approved marketing materials and usage guidelines

5. Appendix 1 - Contact Information: Key contact persons and their details for both parties

6. Appendix 2 - Compliance Checklist: Checklist ensuring compliance with Indonesian regulations and internal policies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Information Technology

Healthcare

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Retail

Manufacturing

Relevant Teams

Legal

Business Development

Sales

Compliance

Finance

Operations

Marketing

Partnerships

Account Management

Risk Management

Relevant Roles

Business Development Manager

Sales Director

Partnership Manager

Channel Manager

Chief Executive Officer

Managing Director

Legal Counsel

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Marketing Manager

Account Manager

Business Consultant

Sales Representative

Financial Advisor

Real Estate Agent

Insurance Broker

Business Owner

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Industries
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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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