Business Forms: Introducer Agreement (Single Transaction)

This Introducer Agreement is designed for a supplier who wants to secure a one-off contract with a single new client, using someone else to make the introduction. It's the right template when you're after a single deal, not an ongoing relationship.

Key Takeaways

• This agreement suits a supplier targeting one specific new client, whether named upfront or defined by criteria the introducer needs to match.
• An introducer differs from an agent: they simply make the introduction and step back, rather than selling or negotiating on the supplier's behalf.
• Payment can be structured around the introduction itself, the first transaction, or both, and can operate as no-win, no-fee.
• It's not suitable for introducing clients for financial services, such as insurance or investment products, since it isn't drafted in line with current financial services regulation.
• If you want to reward every transaction with an introduced client, not just the first, our Introducer Agreement for an ongoing business relationship is the better fit instead.

What Is This Agreement For?

This template suits a supplier who wants to secure a contract with a single client, sometimes in a new market or geographical region, who may or may not be specifically named. Where the target client isn't named, a Prospective Client Criteria schedule lets you set out the requirements the introducer needs to match when finding one.

How Does an Introducer Differ From an Agent?

An introducer doesn't sell the supplier's products or services themselves. Their role is limited to referring a potential client on, either by simply informing them of what the supplier offers, or by actively passing their contact details along. Once the introduction is made, the introducer steps back entirely, the actual selling and supply remain the supplier's responsibility alone.

If you need someone to actively sell or negotiate on your behalf, that's a principal-agent relationship, and a standard agency agreement is the right document instead of this one.

How Does the Fee Work?

This agreement can be set up as a fixed fee or a percentage, with payment triggered by the introduction itself, the first transaction, or both, depending on how you structure it. It can also be arranged as a no-win, no-fee deal, meaning the introducer isn't entitled to anything if no agreement is ultimately reached with the prospective client.

When Should I Use a Different Agreement Instead?

If you're not targeting one specific client but are instead looking for new business generally, a Commission Agreement or Referral Fee Agreement is likely the better fit. And if you want to reward every transaction with the introduced client over time, rather than just the first one, our Introducer Agreement for an ongoing business relationship is designed specifically for that.

This agreement also isn't suitable for introducing clients for regulated financial services, such as insurance products or investment advice, since it isn't drafted in line with current financial services regulation overseen by the Financial Conduct Authority (FCA). If your situation involves financial services introductions, you'll need a properly regulated agreement instead, and it's worth getting advice from a solicitor familiar with financial services compliance.

What Does the Agreement Actually Cover?

The template includes the following clauses: Definitions and Interpretation, Appointment of Introducer, Method of Introduction, Obligations of the Company, Fees and Payment, Relationship of the Parties, Non-Competition, Confidentiality, Non-Circumvention, Termination, Nature of Agreement, Notices and Service, Set Off, and Jurisdiction, along with two schedules covering the Product and the Prospective Client Criteria.

It's provided in an open format, so you can enter your specific details directly into the highlighted fields, or adjust the wording to suit your situation. Optional clauses are shown in square brackets, worth reading carefully to make sure whatever you keep is consistent with the rest of the agreement, and removing anything you don't need.

FAQs

What's the difference between this agreement and the ongoing business relationship version?

This one pays a fee for a single transaction. The ongoing business relationship version rewards the introducer for a defined number of transactions over time, not just the first.

Can I use this agreement for financial services introductions?

No, it isn't drafted in line with current financial services regulation overseen by the FCA, so it isn't suitable for introducing clients for products like insurance or investment advice.

What's the difference between an introducer and an agent?

An introducer makes an introduction and steps back. An agent actively sells or negotiates on the supplier's behalf under a principal-agent relationship, which needs a different type of agreement entirely.

Can this agreement be structured as no-win, no-fee?

Yes, it can be set up so the introducer isn't entitled to a fee if no agreement is ultimately reached with the prospective client.

What if I'm not targeting one specific client?

Our Commission Agreement is designed for situations where you're looking for new business generally, rather than introducing one specific client.

This article is for general information only and does not constitute legal advice. This template document should be reviewed by a qualified solicitor before use, to make sure it properly reflects your specific circumstances and complies with current regulation.