Sales Referral Agreement for New Zealand

Sales Referral Agreement Template for New Zealand

A Sales Referral Agreement is a legally binding document used in New Zealand that establishes the terms and conditions under which one party (the Referrer) agrees to refer potential customers or clients to another party (the Company) in exchange for compensation. The agreement outlines the referral process, commission structure, payment terms, and obligations of both parties while ensuring compliance with New Zealand's Contract and Commercial Law Act 2017, Fair Trading Act 1986, and Privacy Act 2020. It includes provisions for confidentiality, data protection, and dispute resolution, making it suitable for various business contexts where formal referral relationships need to be established.

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What is a Sales Referral Agreement?

The Sales Referral Agreement is a crucial document for businesses in New Zealand looking to expand their customer base through formal referral partnerships. This agreement type is commonly used when a company wants to incentivize external parties to refer potential customers or clients, establishing clear guidelines for the referral process and associated compensation. The document ensures compliance with New Zealand's legal framework, particularly the Contract and Commercial Law Act 2017 and Fair Trading Act 1986, while addressing modern business needs such as data protection under the Privacy Act 2020. It's particularly valuable for businesses seeking to grow through structured referral programs, providing legal protection and clarity for all parties involved in the referral relationship.

What sections should be included in a Sales Referral Agreement?

1. Parties: Identification of the contracting parties - the company receiving referrals and the referrer

2. Background: Context of the agreement, including the company's business and the referrer's role

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

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

5. Referral Process: Detailed process for making and tracking referrals

6. Referral Fees and Payment: Fee structure, payment terms, and conditions for earning referral fees

7. Obligations of the Referrer: Referrer's duties, responsibilities, and performance standards

8. Obligations of the Company: Company's commitments regarding referral handling and payment

9. Confidentiality: Protection of confidential information and trade secrets

10. Privacy and Data Protection: Compliance with Privacy Act 2020 and data handling requirements

11. Term and Termination: Duration of agreement and termination provisions

12. General Provisions: Standard legal provisions including governing law, notices, and assignment

What sections are optional to include in a Sales Referral Agreement?

1. Non-Compete: Restrictions on referrer's ability to refer to competitors, used when protecting market position is crucial

2. Training and Support: Details of any training or support provided by the company, included when the referral process requires specific knowledge or tools

3. Marketing and Branding: Guidelines for using company branding and marketing materials, included when referrer will be representing the company

4. Dispute Resolution: Specific procedures for handling disputes, included in higher-value or complex arrangements

5. Insurance Requirements: Specific insurance coverage requirements for the referrer, included when referrals involve high-value transactions or regulated industries

6. Performance Targets: Specific referral targets or quotas, included when the arrangement is performance-based

7. Compliance Requirements: Industry-specific compliance obligations, included for regulated industries like financial services

What schedules should be included in a Sales Referral Agreement?

1. Schedule 1 - Referral Fee Structure: Detailed breakdown of referral fees, commission tiers, and bonus structures

2. Schedule 2 - Referral Process Flowchart: Visual representation of the referral process and procedures

3. Schedule 3 - Approved Marketing Materials: List or samples of approved marketing materials and messaging

4. Schedule 4 - Reporting Templates: Standard forms for referral submission and tracking

5. Schedule 5 - Territory Definition: Geographic or market segment boundaries for referral activities

6. Appendix A - Code of Conduct: Guidelines for ethical business practices and professional conduct

7. Appendix B - Privacy Policy: Detailed privacy and data protection procedures

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

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Financial Services

Real Estate

Information Technology

Management Consulting

Insurance

Healthcare

Education

Telecommunications

Legal Services

Business Services

Software and Technology

Retail

Relevant Teams

Sales

Business Development

Legal

Compliance

Finance

Marketing

Operations

Commercial

Partner Relations

Contract Administration

Relevant Roles

Business Development Manager

Sales Director

Channel Partner Manager

Chief Revenue Officer

Legal Counsel

Compliance Officer

Partnership Manager

Sales Operations Manager

Marketing Director

Account Executive

Business Partner Manager

Commercial Manager

Contract Administrator

Chief Executive Officer

Small Business Owner

Industries
Teams

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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