The Buyer Referral Agreement is essential for businesses operating in South Africa that wish to formalize their referral partnerships and establish clear guidelines for commission-based customer acquisition. This document is particularly relevant in today's interconnected business environment where referral marketing plays a crucial role in customer acquisition strategies. The agreement ensures compliance with South African legislation, including the Consumer Protection Act and POPIA, while protecting both the principal business and the referrer. It typically includes detailed provisions on referral processes, commission structures, payment terms, data protection, and confidentiality requirements. The document is designed to minimize potential disputes by clearly defining the scope of the referral relationship, qualification criteria for commissions, and payment terms while maintaining alignment with South African legal requirements and business practices.
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1. Parties: Identification and details of the principal business and the referrer
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement, including 'Referred Buyer', 'Qualifying Transaction', 'Referral Fee'
4. Appointment and Scope: Terms of referrer's appointment and scope of referral services
5. Referral Process: Detailed process for making and tracking referrals, including notification requirements
6. Referral Fee Structure: Details of commission rates, calculation methods, and payment terms
7. Obligations of the Referrer: Referrer's duties, responsibilities, and conduct requirements
8. Obligations of the Business: Business's commitments regarding referred buyers and payment processing
9. Data Protection and Privacy: POPIA compliance requirements and data handling procedures
10. Term and Termination: Duration of agreement and termination provisions
11. Confidentiality: Protection of confidential information and trade secrets
12. General Provisions: Standard legal clauses including governing law, notices, and entire agreement
1. Non-Compete Clause: Restrictions on referrer's ability to refer to competitors, used when exclusivity is required
2. Marketing and Branding: Guidelines for using business's branding in referral activities, included when referrer will engage in marketing
3. Training and Support: Details of training provided to referrer, included when business offers comprehensive support
4. Dispute Resolution: Specific procedures for handling disputes, included for high-value or complex referral relationships
5. Insurance Requirements: Specific insurance obligations, included when referrer needs professional liability coverage
6. Compliance with Industry Regulations: Specific regulatory requirements, included when dealing with regulated industries like financial services or real estate
1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
2. Schedule 2 - Referral Process Flow: Step-by-step process flow for making and processing referrals
3. Schedule 3 - Approved Marketing Materials: Templates and guidelines for referral marketing materials
4. Appendix A - Referral Form Template: Standard form for submitting referral information
5. Appendix B - Data Protection Protocol: Detailed procedures for handling personal information in compliance with POPIA
6. Appendix C - Code of Conduct: Guidelines for ethical behavior and professional conduct in referral activities
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