Sales Referral Agreement Template for Philippines

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Key Requirements PROMPT example:

Sales Referral Agreement

"I need a Sales Referral Agreement for my IT consulting company based in Manila, where we'll be paying 10% commission to external consultants who refer clients to us, with quarterly payments and a specific focus on data privacy compliance."

Document background
The Sales Referral Agreement is essential for businesses operating in the Philippines who wish to expand their market reach through formal referral partnerships. This document is particularly important in the Philippine business context where relationship-based business development is common and requires careful legal structuring. The agreement addresses key aspects such as referral mechanisms, commission structures, and compliance with local regulations including the Civil Code of the Philippines, tax laws, and data privacy requirements. It's typically used when companies want to incentivize third parties to refer customers while maintaining control over the sales process and ensuring legal compliance. The document includes specific provisions for protecting both parties' interests, managing referral tracking, and establishing clear payment terms, all within the framework of Philippine commercial law.
Suggested Sections

1. Parties: Identifies the principal company and the referrer/referral partner, including their complete legal names and addresses

2. Background: Explains the context of the agreement, including the principal's business and the referrer's role

3. Definitions: Defines key terms used throughout the agreement, including 'Qualified Referral', 'Successful Sale', and 'Referral Fee'

4. Appointment and Scope: Establishes the referrer's role, rights, and limitations in representing the principal's products/services

5. Referral Process: Details the procedure for submitting referrals, tracking leads, and qualifying successful referrals

6. Referral Fees and Payment Terms: Specifies the compensation structure, calculation method, and payment timing for successful referrals

7. Obligations of the Referrer: Lists the referrer's responsibilities, including ethical conduct and compliance with laws

8. Obligations of the Principal: Outlines the principal's commitments in handling referrals and supporting the referrer

9. Confidentiality: Protects proprietary information shared between parties during the referral process

10. Term and Termination: Specifies the agreement duration and conditions for termination

11. General Provisions: Contains standard legal clauses including governing law, notices, and amendment procedures

Optional Sections

1. Non-Compete: Restricts the referrer from working with competitors, used when sharing sensitive market information

2. Training and Support: Details any training or resources provided to the referrer, included when the principal offers comprehensive support

3. Marketing Guidelines: Specifies rules for using the principal's branding and marketing materials, needed when referrer conducts marketing activities

4. Performance Targets: Sets minimum referral requirements or quotas, used in more structured referral programs

5. Dispute Resolution: Establishes specific procedures for resolving conflicts, recommended for high-value referral arrangements

6. Data Protection: Additional provisions for handling personal data, required when referrals involve substantial data sharing

7. Insurance Requirements: Specifies insurance coverage requirements for the referrer, needed in high-risk industries

Suggested Schedules

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

2. Schedule B - Products and Services: List of products/services covered under the referral agreement

3. Schedule C - Referral Submission Form: Standard template for submitting referral information

4. Schedule D - Territory Definition: Geographic or market segment limitations for referral activities

5. Appendix 1 - Reporting Templates: Standard formats for tracking and reporting referral activities

6. Appendix 2 - Compliance Checklist: List of regulatory requirements and compliance 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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Professional Services

Financial Services

Real Estate

Insurance

Healthcare

Manufacturing

Telecommunications

Education and Training

Consulting Services

Retail

Construction

Relevant Teams

Business Development

Sales

Legal

Compliance

Finance

Marketing

Partner Relations

Operations

Commercial

Administration

Relevant Roles

Business Development Manager

Sales Director

Channel Partner Manager

Chief Revenue Officer

Marketing Manager

Partnership Manager

Legal Counsel

Compliance Officer

Sales Operations Manager

Account Executive

Chief Executive Officer

Commercial Director

Business Owner

Referral Program Coordinator

Sales Administrator

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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