While there are many different issues to include in a software or software services referral agreement (SAAS referral agreement), here are a few practical things to consider:
1) What is In and Out. What types of referrals will you pay on, and what types won’t you? Don’t forget excluding transactions that are already in flight or that don’t close within x amount of time. What about extensions of the transaction? Be super clear on all these issues, as this is the key part of the agreement (quite frankly most of the disputes I see are related to these issue).
2) Payment/Reporting. Do you want to pay after each transaction, or on a monthly/quarterly basis under a report? Also, don’t forget to address credits and returns, and that you have to be paid first (before you pay them).
3) Simplicity/Plain English. Keep this agreement simple, and short, as you want to make sure (a) your partner understands the agreement, and (b) your internal sales/channel teams understand it too. Any confusion between these two groups on referrals could create a lot of disagreements.
Just a few thoughts from a software attorney.
Disclaimer: This is provided for educational and informational purposes only, and is not legal advice. Talk to your attorney for legal advice, as they should consider the pertinent facts and applicable law before providing any advice.