Revenue / Cost Sharing Agreement


Members are often confused about which type of document shall be used in relation to commission and fee sharing agreement. The following table is a quick reference guide (please note that some of the agreements are under different categories):

 

Documents

When to Use

Sales Representative Commission Agreement

Agreement between Company and Sales Representative re Commission to be received by the Sales Representative. The Sales Representative acts as agent for the Company.

Marketing Agency Agreement

Agreement or manufacturer appointing marketing agent (not sales agent who can bind the Principal) into new territory. The Agent is paid a commission as a % the Price. 

Finder's Agreement

The Agent introduces a transaction to the Principal in return for a Commission (Finder's Fee) upon the completion of the transaction. 

Engagement Letter and Success Fee Agreement

Company to engage investment advisor to find investors. Alternately, investor to engage investment advisor to introduce transactions. Both on a success fee basis.

Success Fee Sharing Agreement

Fee sharing letter for an advisor to share its fee received from the company with an introducer for introducing investors on a success basis.

Referral Fee Agreement

Referral Fee Agreement where Referrer may refer potential customers to Seller for a referral fee. The referral fee can be fixed or as a % of the net value of goods and services.

Service Fee Sharing Agreement

Simple fee sharing agreement for a servicer to share its fee received from clients referred by the referrer who will also be responsible for liaising with clients.