A marketing agreement is a legal and mutually made confirmation between the client and the chosen marketing agency. It provides the details of the points discussed in the business deal.
So, the marketing agreement is used to get both the parties' consent on terms and conditions stated in the document. Furthermore, the written agreement is proof of final payment plans post the marketing services offered. Read the rest parts to find out more details
What Is a Marketing Agreement?
A legal document, signed by all the parties involved, providing the written proof of the scope of work to be undertaken, predetermined duties and responsibilities fulfilled by the marketing agency is a marketing agreement.
It is a written document created by one party but agreed by all the parties involved and contains a detailed description of all the marketing work done by the agency. It also describes the expectation of agency from the business like the on-time payment.
This agreement also serves as a record to provide clarity upon what is expected of who and by when. So that any of the parties shall not falsely claim that the other didn’t hold up their end deal.
In this way, both parties can protect their interest and intellectual property as well as it ensures that the marketer’s tool will reflect the client's vision and principals.
What Are the Benefits of Using a Marketing Agreement?
The companies hire marketing professionals to promote and market their brand, product, or services. To carry out such a deal in an informal and professional way, marketing agreements are used.
This agreement provides the guidelines for the marketer and crucial information like terms of payment, billable tasks, and non-compete clauses if any. Here are some of the benefits of using a marketing agreement:
- Accountability: The duties and responsibilities of both parties are clearly stated so that there is no scope of misunderstanding.
- Clarification of Objectives: With this agreement, the parties involved shall understand the objective and goal of the project which in turn ensures a satisfactory working relationship.
- No Scope of Miscommunication: There shall not be any arguments on things like due payments, or the project’s outcome as everything is predetermined in the written form.
- A Written Consent: In case the relationship between the parties goes sour, both the parties will have a record of what was mutually decided in the first place.
What Is Included in a Marketing Agreement?
A marketing agreement includes a number of things relevant to the business and the deal with the agency. So, what does it actually include?
The business shall provide exclusive rights to the marketing agency for carrying out the marketing, public relation, or any other promotional event for the brand or the product. The duration of the validity of this term is also stated in the document.
Details of the Timeline
Every agreement shall have a detailed timeline as the agency will not have exclusive rights to do the business’s marketing forever. They shall be hired for a specific time duration. This shall be of one or two years, however, it is mostly dependent on the business needs.
Details of Payment
The overall cost of hiring the agency for so and so services shall be clarified and clearly mentioned in the agreement. The exact time duration and mode of payment(s) shall also be included in the statement.
Details of the Project
This is a customized part of every marketing agreement. So, the company needs to take time and make notes of the details of the projects the agency would be worked upon.
Both the parties can together come up with a detailed plan like advertising campaigns or other services. It is basically a record of the company’s expectations from the agency.
The agreement states the certain dates by which the agency is liable to deliver the said amount of work. It also includes the promises made by the agencies.
The agreement shall provide a guarantee like improving the metrics to indicate the campaign success or increase in sales volume.
The agreement includes a clause to bind the parties to keep confidential all the discussed sensitive intellectual property or proprietary information regarding the business or campaigns.
The client and the agency shall come under a legal agreement to save themselves from future frauds and misunderstandings. The parties shall read carefully and verify all the details in the agreement before finalizing the document.
Furthermore, CocoSign has provided free marketing agreement templates so that the business owners do not need to worry about the right procedure of starting the agreement.
With these templates, you can customize your own terms and conditions in accordance with business requirements and the relationship of the parties involved.