Agency fee clause: Copy, customize and use instantly
Introduction
An agency fee clause explains how and when one party will pay an agent or intermediary for their services, like arranging a deal or acting on their behalf. It clearly outlines the fee amount, payment schedule, and any conditions tied to earning the fee.
Below are agency fee clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard agency fee clause
This clause provides a straightforward arrangement for payment of an agency fee.
The principal agrees to pay the agent a fee of [insert amount or percentage] for services rendered under this agreement. Payment will be made within [insert time frame] of the execution of the transaction facilitated by the agent.
Conditional agency fee clause
This clause ties the payment of agency fees to specific outcomes.
The agent will be entitled to a fee of [insert amount or percentage] only upon the successful completion of [specific action, e.g., "closing of the sale"]. Payment will be made within [insert time frame] following the achievement of the specified outcome.
Tiered agency fee clause
This clause establishes a tiered fee structure based on performance levels.
The agent will be entitled to fees based on the following performance tiers: (i) [percentage] of the transaction value for deals up to [threshold], (ii) [percentage] for deals between [range], and (iii) [percentage] for deals exceeding [threshold]. Payment will be made within [time frame] following the transaction.
Exclusive agency fee clause
This clause grants the agent exclusive rights to fees for transactions within a defined scope.
The principal agrees to pay the agent a fee of [insert amount or percentage] for all transactions within [specific territory or sector] during the term of this agreement. No other agent will be entitled to fees for such transactions.
Retainer-based agency fee clause
This clause includes a retainer fee with additional payment terms.
The principal will pay the agent a retainer fee of [insert amount] upon execution of this agreement. Additional fees of [insert amount or percentage] will be paid upon the successful completion of each transaction facilitated by the agent.
Agency fee with expenses clause
This clause allows for reimbursement of the agent’s expenses in addition to the fee.
In addition to the agency fee of [insert amount or percentage], the principal agrees to reimburse the agent for pre-approved expenses incurred in connection with the performance of their duties. Reimbursement will be made within [time frame] upon submission of receipts.
Deferred agency fee clause
This clause defers the payment of the fee to a later stage.
The agent’s fee of [insert amount or percentage] will be payable [insert condition, e.g., "after receipt of funds from the transaction"]. No payment will be due prior to this condition being met.
Agency fee with termination clause
This clause addresses fee entitlements if the agreement is terminated early.
If this agreement is terminated by the principal, the agent will still be entitled to a pro-rata fee based on work completed prior to termination. Payment will be made within [insert time frame] of termination.
Agency fee with milestone payments clause
This clause links payments to the completion of specific milestones.
The agent will receive fees in installments as follows: (i) [percentage] upon execution of the agreement, (ii) [percentage] upon the achievement of [milestone], and (iii) the remaining [percentage] upon the completion of the transaction.
Disputed fee resolution clause
This clause provides a mechanism for resolving disputes over the agency fee.
In the event of a dispute regarding the agency fee, the parties agree to resolve the matter through [arbitration/mediation] before pursuing any legal remedies. Payments due will be withheld until resolution is achieved.
Standard agency fee clause
This clause provides a straightforward agreement on agency fee payment terms.
The principal agrees to pay the agent a fee of [insert amount or percentage] upon the successful completion of [specific service, e.g., brokering the sale of a property]. Payment will be made within [insert time frame] of the completion of the service.
Conditional agency fee clause
This clause ties the fee to specific conditions being met.
The agent is entitled to a fee of [insert amount or percentage] only if [specific condition, e.g., the sale is completed and payment is received from the buyer]. Payment must be made within [insert time frame] once the condition is fulfilled.
Retainer-based agency fee clause
This clause provides for an upfront payment and a final fee.
The principal agrees to pay the agent a retainer fee of [insert amount] at the start of this agreement and a final payment of [insert amount or percentage] upon the successful completion of [specific service]. The final payment will be made within [insert time frame] of service completion.
Exclusive agency fee clause
This clause applies when the agent has exclusive rights to represent the principal.
The agent is entitled to a fee of [insert amount or percentage] for any transaction within [insert scope, e.g., a specific region or time frame], regardless of whether the transaction is facilitated directly by the principal or through third parties.
Percentage-based agency fee clause
This clause bases the fee on a percentage of the transaction value.
The agent will receive a fee equal to [insert percentage] of the total transaction value, payable within [insert time frame] following the completion of the transaction.
Success fee clause
This clause ties the payment strictly to successful outcomes.
The agent will be paid a success fee of [insert amount or percentage] only upon the successful completion of [specific outcome, e.g., the execution of a sale agreement]. No fees will be due if the outcome is not achieved.
Capped agency fee clause
This clause limits the maximum fee the agent can earn.
The agent’s fee will be [insert amount or percentage] of the transaction value, not to exceed a total of [insert capped amount]. Payment will be made within [insert time frame] of the service completion.
Split payment agency fee clause
This clause allows for staggered payments.
The agent will receive [insert percentage or amount] upon signing of the agreement and [insert percentage or amount] upon successful completion of [specific service]. All payments will be completed within [insert time frame].
Agency fee with expense reimbursement clause
This clause includes reimbursement for additional costs.
In addition to the agreed fee of [insert amount or percentage], the agent will be reimbursed for reasonable expenses incurred in the performance of their services, subject to prior approval and submission of receipts.
Time-based agency fee clause
This clause links the fee to time spent by the agent.
The agent will be compensated at a rate of [insert amount] per [hour/day/week] worked, payable within [insert time frame] following the submission of an invoice and detailed time log.
Non-refundable retainer clause
This clause specifies that initial payments are non-refundable.
The agent will be paid a non-refundable retainer fee of [insert amount] upon execution of this agreement, with the balance of [insert amount or percentage] due upon completion of [specific service].
Sliding scale agency fee clause
This clause adjusts fees based on transaction size.
The agent’s fee will be calculated as follows: [insert percentage] for transactions up to [insert amount], [insert percentage] for transactions exceeding [insert amount]. Payment is due within [insert time frame] following transaction completion.
Termination agency fee clause
This clause addresses fees in the event of termination.
If this agreement is terminated by the principal prior to the completion of services, the agent will be entitled to a fee of [insert amount or percentage] for work completed up to the date of termination.
Milestone-based agency fee clause
This clause ties the fee to specific project milestones.
The agent will receive [insert amount or percentage] upon the completion of each milestone as follows: [insert milestones and corresponding payments]. Payment for each milestone is due within [insert time frame] of its completion.
Agency fee with performance bonus clause
This clause rewards the agent for exceeding expectations.
The agent will receive a base fee of [insert amount or percentage] upon completing [specific service], with an additional performance bonus of [insert amount or percentage] for achieving [specific goal, e.g., exceeding sales targets]. Payment is due within [insert time frame].
Deferred agency fee clause
This clause postpones payment until certain conditions are met.
The agent’s fee of [insert amount or percentage] will be deferred until [specific condition, e.g., the principal secures funding]. Payment will be made within [insert time frame] once the condition is satisfied.
Non-exclusive agency fee clause
This clause allows the principal to engage multiple agents.
The agent is entitled to a fee of [insert amount or percentage] only for transactions directly facilitated by them. The principal retains the right to engage other agents without additional compensation to this agent.
Contingency-based agency fee clause
This clause makes payment conditional on external factors.
The agent will be entitled to a fee of [insert amount or percentage] only if [specific contingency, e.g., regulatory approval] is achieved. Payment will be made within [insert time frame] after the contingency is satisfied.
Volume-based agency fee clause
This clause ties the fee to the volume of transactions.
The agent will be compensated at a rate of [insert amount or percentage] per [unit/transaction]. Payment will be made monthly based on the total volume achieved during the period.
Renewal agency fee clause
This clause provides for fees on contract renewals.
The agent will receive a fee of [insert amount or percentage] for the initial agreement and [insert amount or percentage] for any renewals facilitated. Payments are due within [insert time frame] of each renewal.
Territory-specific agency fee clause
This clause limits fees to a specific geographic area.
The agent is entitled to a fee of [insert amount or percentage] for transactions occurring within [insert territory]. Payment is due within [insert time frame] of the transaction's completion.
Exclusivity with penalty clause
This clause imposes a penalty for breaching exclusivity.
The agent is the exclusive representative for [specific service/territory]. Any breach of exclusivity by the principal will result in a penalty fee of [insert amount or percentage], in addition to the agreed agency fee.
Successive payment agency fee clause
This clause allows for regular payments over time.
The agent will receive [insert amount] on a monthly basis for the duration of [specific service or project], with the total not exceeding [insert capped amount]. Payments will commence on [insert start date].
Upfront and success fee combination clause
This clause includes an upfront fee and a final success fee.
The agent will be paid an upfront fee of [insert amount] upon execution of this agreement, with an additional success fee of [insert amount or percentage] upon completion of [specific outcome]. All payments are due within [insert time frame].
Minimum threshold agency fee clause
This clause sets a minimum performance threshold for fees.
The agent will be entitled to a fee of [insert amount or percentage] only if the total transaction value exceeds [insert threshold amount]. Payment will be made within [insert time frame] following the achievement of this threshold.
Alternative compensation agency fee clause
This clause allows for non-monetary compensation.
In lieu of a monetary fee, the principal agrees to compensate the agent with [insert alternative, e.g., equity, products, or services]. The agreed alternative compensation will be delivered within [insert time frame] of completing [specific service].
Commission-based agency fee clause
This clause specifies a fee tied to a percentage of sales or transactions.
The agent will be entitled to a commission of [insert percentage] of the net value of each transaction facilitated. Payment will be made within [insert time frame] of the transaction’s conclusion.
Flat-rate agency fee clause
This clause provides for a fixed fee regardless of outcomes.
The agent will receive a flat fee of [insert amount] for the services rendered under this agreement. The payment is due in full within [insert time frame] of the execution of this agreement.
Retainer and success fee clause
This clause includes a retainer and an additional success fee.
The principal will pay the agent a retainer of [insert amount], with an additional success fee of [insert amount or percentage] upon achieving [specific result]. The retainer will be paid upon execution of this agreement, and the success fee is due within [insert time frame] of achieving the result.
Sliding scale agency fee clause
This clause adjusts the fee based on performance metrics.
The agent’s fee will be calculated on a sliding scale as follows: [insert specific tiers, e.g., 5% for transactions up to $50,000, 7% for transactions between $50,001 and $100,000, and 10% for transactions exceeding $100,000]. Payments will be made monthly based on cumulative performance.
Exclusive services fee clause
This clause ties the fee to exclusivity for specific services.
The agent will be paid [insert amount or percentage] for exclusive representation of the principal for [specific service or territory]. Payment is due within [insert time frame] of executing the agreement.
Fee-sharing arrangement clause
This clause allows for splitting fees with other agents.
The agent will receive [insert percentage] of the total commission earned on transactions jointly facilitated with another agent, as agreed in writing by all parties. Payments are due within [insert time frame].
Incremental milestone fee clause
This clause breaks the fee into incremental payments.
The agent will be compensated as follows: [insert payment structure, e.g., 25% upon agreement execution, 50% upon delivery of services, and 25% upon final approval]. Payments are due within [insert time frame] of achieving each milestone.
Capped commission agency fee clause
This clause sets a maximum limit for commission payments.
The agent will earn a commission of [insert percentage] for each transaction, up to a maximum of [insert total amount] during the term of this agreement. Payments will be made quarterly based on cumulative sales.
Conditional rebate fee clause
This clause allows for a partial fee rebate if specific conditions aren’t met.
The agent will receive [insert amount or percentage] for services rendered. However, [insert percentage] of the fee will be refunded to the principal if [specific condition, e.g., transaction is not completed] within [insert time frame].
Non-contingent agency fee clause
This clause guarantees the fee regardless of results.
The agent will be paid a non-contingent fee of [insert amount] for services provided under this agreement. The payment is due in full within [insert time frame], irrespective of transaction outcomes.
Equity-based agency fee clause
This clause compensates the agent with equity rather than cash.
In lieu of a cash payment, the agent will receive [insert number or percentage] of equity in the principal’s company upon achieving [specific goal]. The equity transfer will be completed within [insert time frame].
Tiered performance bonus clause
This clause adds tiered bonuses based on achievements.
In addition to the base fee of [insert amount], the agent will earn bonuses as follows: [insert structure, e.g., $5,000 for achieving $50,000 in sales, $10,000 for achieving $100,000, etc.]. All payments are due within [insert time frame] of achieving each tier.
Performance-linked deferred fee clause
This clause ties payment to specific performance milestones.
The agent will receive a deferred payment of [insert amount or percentage] upon meeting the performance benchmark of [insert specific goal, e.g., closing a transaction or reaching a target]. Payment is due within [insert time frame] of the benchmark being achieved.
Exclusivity breach penalty clause
This clause includes a penalty if the agent breaches exclusivity.
The agent will be compensated [insert amount or percentage] for services rendered. However, if the agent violates exclusivity obligations, [insert amount] will be deducted from the total fee, and the balance will be paid within [insert time frame].
Time-bound fee clause
This clause sets a fee that varies based on the agreement's duration.
The agent will receive [insert amount or percentage] for services rendered, calculated based on the term of this agreement. A prorated fee will be applied if the agreement is terminated early, with payment due within [insert time frame].
Contingent on approval fee clause
This clause makes payment contingent on client approval.
The agent will be compensated [insert amount or percentage] only after the principal’s approval of [specific condition, e.g., transaction documents]. Payment is due within [insert time frame] after approval.
Geographic territory fee clause
This clause differentiates fees based on regions.
The agent will receive [insert percentage] of transactions facilitated in [specific territory]. A separate rate of [insert percentage] applies to transactions outside this territory, with payments made quarterly.
Fixed retainer with additional incentives clause
This clause offers a fixed retainer plus performance bonuses.
The principal agrees to pay the agent a fixed retainer of [insert amount], plus a bonus of [insert amount or percentage] for each completed transaction exceeding [specific target]. Payments are due within [insert time frame] of each completed transaction.
Revenue-sharing fee clause
This clause ties the agent's fee to a share of total revenue.
The agent will receive [insert percentage] of the principal’s total revenue generated from transactions facilitated during the agreement’s term. Payments will be made monthly based on revenue reports.
Dispute-resolution fee holdback clause
This clause allows for withholding part of the fee during disputes.
The agent will receive [insert percentage] of the total fee, with [insert percentage] held in escrow until any disputes regarding the services are resolved. Remaining fees will be paid within [insert time frame] after resolution.
Task-specific fee clause
This clause specifies fees for individual tasks or assignments.
The agent will receive [insert amount or percentage] for each completed task outlined in the scope of work. Payments are due within [insert time frame] of task completion.
Fee linked to market conditions clause
This clause adjusts fees based on external market conditions.
The agent’s fee will be [insert amount or percentage], subject to adjustment based on prevailing market rates for similar services. Any adjustments will be communicated in writing and applied retroactively within [insert time frame].
Upfront payment with clawback clause
This clause allows for upfront payment with potential clawbacks.
The agent will receive an upfront payment of [insert amount]. If specific conditions, such as [insert condition], are not met within [insert time frame], the principal reserves the right to recover [insert percentage or amount] of the payment.
Flexible fee structure clause
This clause enables parties to renegotiate the fee structure during the agreement.
The agent will receive an initial fee of [insert amount or percentage]. Both parties agree to review and potentially adjust the fee structure at [specific intervals or milestones], with changes documented in writing.
Shared liability for expenses clause
This clause allocates expenses between the agent and principal.
The agent will receive a fee of [insert amount or percentage]. Any expenses incurred during service delivery will be reimbursed up to [insert amount or percentage], with prior approval from the principal.
Milestone-based escalating fee clause
This clause increases the agent’s fee at specific performance milestones.
The agent will receive an initial fee of [insert amount or percentage] upon signing the agreement. Additional fees of [insert amount or percentage] will be paid at each milestone achieved, as outlined in [insert schedule]. Payments are due within [insert time frame] of milestone completion.
Volume-driven discount fee clause
This clause reduces fees as transaction volumes increase.
The agent will receive [insert percentage] of the total transaction value, with a volume discount applied if transactions exceed [specific threshold]. Discounts will be calculated as [insert percentage] and deducted from the subsequent payment cycle.
Fee split with co-agent clause
This clause specifies fee allocation when multiple agents are involved.
The agent will receive [insert percentage] of the total agreed fee. If a co-agent is involved, the fee will be split as follows: [insert percentage for primary agent] and [insert percentage for co-agent]. Payments are due within [insert time frame].
Deferred fee contingent on results clause
This clause delays payment until specific results are delivered.
The agent will receive [insert amount or percentage] of the fee, deferred until the successful completion of [insert deliverable or goal]. Payment is due within [insert time frame] after results are verified.
Non-monetary compensation clause
This clause allows for compensation in forms other than cash.
The agent will be compensated with [insert type of non-monetary compensation, e.g., stock options, services, or goods], equivalent to a value of [insert amount]. Delivery of compensation will occur within [insert time frame].
Minimum guaranteed fee clause
This clause ensures a baseline fee regardless of results.
The agent will receive a minimum fee of [insert amount], irrespective of the agreement’s outcome. Any additional compensation tied to performance will be paid per [insert terms], with all payments due within [insert time frame].
Fee tied to client retention clause
This clause ties payment to retaining clients over a defined period.
The agent will be paid [insert amount or percentage] for each new client retained for at least [insert time period]. Payments will be made quarterly, contingent on retention verification.
Recurring fee for ongoing services clause
This clause establishes a recurring payment for continuous services.
The agent will receive a recurring fee of [insert amount or percentage] on a [monthly/quarterly] basis for ongoing services provided under this agreement. Payments are due by the [insert date] of each period.
Competitive rate adjustment clause
This clause adjusts fees to remain competitive within the market.
The agent’s fee of [insert amount or percentage] will be reviewed every [insert time period] and adjusted to align with prevailing market rates for similar services. Any adjustments will be communicated in writing.
Retainer fee with success bonus clause
This clause combines a fixed retainer with performance-based incentives.
The agent will receive a retainer fee of [insert amount], with an additional bonus of [insert amount or percentage] for achieving [specific performance goal]. All payments are due within [insert time frame] of performance validation.
Fee reduction for early termination clause
This clause reduces the agent’s fee if the agreement ends prematurely.
The agent’s fee will be reduced by [insert percentage] if the agreement is terminated before [insert milestone or time period]. Final payment will be calculated based on completed deliverables and paid within [insert time frame].
Fee tied to exclusive representation clause
This clause provides a higher fee for exclusivity.
The agent will receive [insert amount or percentage] for services rendered, with an additional [insert percentage or amount] for maintaining exclusive representation rights during the agreement’s term. Payments are due quarterly.
Client satisfaction-based fee clause
This clause ties payment to client satisfaction ratings.
The agent will be paid [insert amount or percentage] upon achieving a client satisfaction score of [insert threshold, e.g., 90%]. Payments are due within [insert time frame] of score validation.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.