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When you discuss a contract, it can make everyone’s eyes glaze over fast. Most people are far more interested in the meat of the deal: how you’ll execute the project and the payoff.
However, thorough marketing contracts are vital to an agency’s success.
Proper contracts between your marketing agency and the client, independent contractors, and subcontractors protect all parties, outline expectations, and establish boundaries. Knowing what to include in a marketing services agreement is hugely important to your agency’s growth and can help increase a contract's value.
Hint: A marketing template helps a lot! Below, we’ll cover what you need to include in your contracts — and give you a comprehensive template to get you started.
Essential components of an effective marketing agreement template
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“The most important thing to keep in mind is that your contract needs to protect your agency. Include paragraphs that protect your agency from client’s business and revenue damages that can be caused by the service that you provide.
Your contract can be used to raise your client’s confidence in closing the deal. Make sure to include paragraphs that give your client a way out of the contract, a refund paragraph, and a commitment to the quality of your services." ~ Sun Vainer, Co-Founder and CEO of R.S.L. Negital Ltd.
For a marketing contract to perform, you must include a section to address every expectation and issue. Omitting important information can cause big misunderstandings in projects down the road. It can even cause legal action to be taken against your agency.
Every marketing contract should contain a detailed explanation and guidance on the following points:
Parties
This section lists the individuals, groups of people, companies, and any other party responsible for the contract’s obligations. Once the contract is drafted, every party needs to read and sign it.
If one party doesn’t agree to the contract, they can “redline” it, meaning they cross out parts they want to be removed or changed. Any party can also refuse to sign it, but the result is that the contract doesn’t go into effect.
Services
Laying out the scope of work the client will receive minimizes the risk of a misunderstanding that could damage the business relationship. After all, agency owners don’t want to disappoint a client and lose the possibility of future business. (Nor do they want to do a bunch of work that wasn’t included in the quote.)
This section is where agencies should include things like the number of revisions offered, the number of meetings that are included, etc.
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Pricing, fees, and payment terms
Transparently listing your agency's pricing model and one-time or ongoing fees the client is responsible for makes sure all parties are on the same page. Payment terms should also be explained thoroughly within this section. Proactively address when payments are due in order to minimize late payments and miscommunications later on.
Duration and termination
This section informs all parties how long they will be working together and what actions to take if one of them decides the arrangement is no longer working for them.
The termination rules may be something as simple as giving 30 days' written notice of the party’s intent to terminate the contract.
This section should cover how much notice must be given, the form the notice must come in (mail, email, verbal), and details about finishing work after notice is given.
Confidentiality and non-disclosure
Both agencies and clients may possess confidential or proprietary information that the other party doesn’t want to be shared. These may include trade secrets, client lists, rates, and other private information.
This section will help avoid non-disclosure mistakes. Include the type of information considered confidential and the consequences of a breach of contract if it’s leaked or shared. There should also be guidance on how long the information must be kept confidential. Is it only until the project is finished, or are parties bound forever?
Relationship between parties
This section clarifies what the relationship is and isn’t between the parties entering into the contract. Typically, it offers up language that explains the parties are not business partners and have not entered an employee/employer relationship.
Ownership
If the client pays your agency to do the work, and your agency completes the deliverable, who owns the work? If this question is left unaddressed in a contract, it may damage the relationship.
The contract should spell out who owns what. Even if the client owns the final product, your agency may want to maintain ownership of its processes.
Intellectual property rights
If the scope of work includes trademarks, copyrights, and patents, the contract must address who becomes the owner of these entities. This section should include reasonable restrictions and specific language detailing owning and using intellectual property.
Exclusivity
Another important component of a marketing contract is exclusivity. Its language ties one party to another and prohibits them from working or partnering with other parties.
This provision should be worded to specifically define the actions that are (or aren’t) permitted under the contract.
Limitation of liability
A limitation of liability limits the money or other damages one party can receive from the other because of breaches and other actions. Limitations of liability are usually upheld and enforced by the courts.
Severability
If some of the terms of the marketing contract are found to be illegal or unenforceable, a severability clause states the remainder of the agreement still applies. This section protects every party from damage and strengthens the contract.
Miscellaneous
When there’s information that doesn’t fit in any other section, it can be easily added to the miscellaneous section. Things like merger and acquisition scenarios and jurisdictional standing would be included in this section as subsections.
Entire agreement
This section clarifies the new agreement overrides any previous agreement between or among the parties. This section is vital to minimize the chances of a party claiming an earlier contract is the binding one.
Acceptance and signature(s)
Also called the “signing page,” this section is where the parties formally agree to the terms of the contract. Hard signatures with a blue or black pen were widely required for many years, but more parties are accepting e-signatures now.
A representative from each party must sign their full name and title and date the contract. Most contracts require a witness or notary stamp.
Marketing contract template
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It’s mission-critical for your agency to prioritize binding, thorough contracts. This is the best way to protect your business, and bolster confidence with the client.
Ready to revisit your contracts but not sure where to start? Jumpstart the process with this free marketing agreement template.
Facilitate your agency’s marketing services with Teamwork
A clear-cut contract between your agency and client is one of the best ways to manage expectations, avoid misunderstandings, and build a prosperous working relationship (with contract renewals). Devote time and consideration to making this legal document as strong and transparent as possible to protect your agency and reinforce trust with your clients.
Did you know Teamwork is built specifically for agency work? Our intuitive, feature-rich platform can help streamline your processes, automate your manual tasks, and make sure you never miss another billable minute — keeping your agency as profitable as possible.
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