I want to hire a few contractors to help me get leads for my business.

I am planning on paying the contractors commission only. i.e. I get $X in sales from there referral and they get a fixed % of $X.

Of course I want to get as many new and repeat clients as possible. My issue is: how do I make the agreement fair for my contractors and give them a strong incentive, but at the same time not have to keep paying for repeat business from a client that was previously referred?

There are three basic situations:

  • Individual one time or first time sale - Obviously I will pay for this.
  • Repeat business from the same client - This is what I want to avoid having to pay for in perpetuity.
  • Bulk Sale - I will pay for this even if it involves previous clients assuming the contractor initiates / prompts the sale and the quantity is above a specified amount.
  • Let me try and understand this, you want a customer to pay for the first copy of your software but not pay you for further copies hmmm that's a difficult one! – KJO Nov 30 at 21:10
  • No, customers will see no difference. I'm talking about what I pay the contractors who bring me customers. – Alex Nov 30 at 21:26
  • Wouldn't it merely be a one time finder's fee? – Scott Dec 1 at 13:38
  • Yes I guess so. I'm looking for what is the common practice and legal terms to use in the contract. – Alex Dec 4 at 5:11

You might try using a template form for your commission's contracts. Typically with a little due diligence, you can find what you need.

I use RocketLawyer.com for most of my legal documents and haven't had a single issue finding what I've needed.

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