What are marketing strategies, and what advantages do they bring to your business? Learn about this meaningful arrangement, starting with its definition, composition, and construction. The article also answers frequently asked questions related to marketing agreements.

What Is a Marketing Agreement?

A marketing agreement, otherwise known as a joint marketing agreement, details the terms and conditions between a marketer to aid a client to sell their products or services through creating marketable materials and strategies to promote their merchandise to the public. It also helps expand its market locally and internationally to new consumers. Marketing materials a promoter utilizes for companies include printed items, like flyers, brochures, and pamphlets. Marketers also use online marketing through website and social media advertising, promotional events, and trade shows. The marketing agreement contains the marketing scope of work, duties, and company expectations from the agency.

According to the website Statista and the statistical data regarding the Global Marketing Data Market Size from 2017 to 2021, the value of the global marketing data market reaches 34.61 billion US Dollars last 2019. A foreseeable growth in the market tallies to an impressive amount of 52.26 billion US Dollars in 2021. Despite the pandemic, the marketing industry continues to thrive and flourish.

Parts of a Marketing Agreement

Unlike other agreements and contracts, there is no structure or standardization in the contents of a marketing agreement. Companies tailor their marketing agreements according to the business, industry, and situation relating to the scope of work of the possible marketing agent. Below are the essential elements of a marketing agreement that your document must contain.

Discussion of exclusivity: In this arrangement, the document gives exclusive rights to the marketing company or agent to perform marketing strategies and activities, public relations for promoting a business and product following the contract’s duration. If a company hires a marketing agency to advertise a new product, it specifies that no other agency organizes marketing activities for goods until the defined term in the agreement. It distinctly identifies the client and the agency, including the names, and outlines the marketing scope of work.Timeline details: It is imperative to note that the agency promoting a particular product does not have exclusive rights for the company’s marketing ventures for life. A marketing agreement needs a clear and precise timeline, agreed upon by the client and the agency. If the arranged period by the parties is one or two years, it must reflect on the agreement. The timeline also depends on the business’ needs, so it’s necessary to establish proper communication.Payment and cost details: The payment and cost details clarify the overall payment and the details of payment structures. The agreement must specify the discussion of payment schedules, whether the client pays every month and the payment date. It must include if the customer completes their entire dues at the time of the agreement’s signing. Guarantee that payment terms are written down and present on the document.Project-specific details: The section refers to the expected outcomes and outputs of the product or promotion by the client from an agency. It is the most flexible element of the marketing agreement, making them unique and exclusive from other related arrangements. Note the details of the project you wish to achieve by hiring the marketing agency’s expertise, laying the foundation into the agreement. It is clear about the reason for hiring the marketing agency. It also details the exact responsibilities of the consultant, whether it is their duty to market and advertises the project or product for the entirety of the organization, or it is only for single merchandise promotions. The section must also clarify the platform and avenues the client wishes to enter. It is crucial to understand if the hiring company wants to market and advertise its products using social media platforms, public relations events, outreach to local media, or paid advertisements. The marketing agreement is a record of the client’s vision and expectations, and incorporating these into the arrangement guarantees that the marketing agency grasps the concept of the organization’s venture. In the end, it is the basis for a satisfying and trusting work relationship between the parties.Timeline for completion: It is mandatory to lay out all the relevant dates and different elements leading to the agreement’s completion. It must include the work duration of both parties with each other, along with other specifics regarding dates. If expected events or deliverables must happen on a given date, they must reflect in the document. Make a complete list of date-specific events and how they relate to one another to create an overall timeline of events within the agreement’s duration.Guarantees: Marketing agreements can provide a metric system or criteria to measure the overall success or completion of the arrangement. Through the marketing plan, will the company achieve an increase in sales, search traffic, or other aspects of marketing with the aid of the consultant? Including a discussion similar to this helps with managing the expectations and outcomes of the marketing agreement. Indicate periodic meetings and check-ins, include data numbers of company sales standing to serve as the baseline.Termination clause: It is necessary for any agreement to contain this provision. It provides a set of conditions and circumstances wherein either party may choose to terminate the arrangement. It states the possible effects of termination, including payments and other obligations of the parties. The conditions for the termination clause can stem from mutual understanding, a breach of contract, unforeseen events including bankruptcy or force majeure, or following the dissolution of the arrangement. Steps for resolving disputes: Consider including a dispute resolution plan in your marketing agreement. It means a clear and formal written notice of the current issues and all accompanying dispute meetings headed by a mediator. Including this section in the marketing agreement lessens legal proceedings or court hearings, saving time and money.Copyright clause: It is critical to have a way to protect the intellectual property or identity trademark of the marketing agency or client, including the processes, systems, and outputs. Ensure that the client knows that the methods for creating work are part of the agency’s intellectual property. It is also advisable to give full disclosure that the final product is now the client’s property.Confidentiality clause: A confidentiality clause helps the client and agency to keep information regarding the marketing arrangement between the parties. The confidential information includes price quotations, processes and trade secrets, vital information, and documents from clients and the marketing consultant.Indemnity clause: An indemnity clause must find itself in a marketing agreement. The purpose of the inclusion is because it states the conditions or outlines a way for insuring compensation for damages or losses. In which case, one party offers financial compensation to the other party for any potential loss or damage caused by a third party. They also take legal responsibility and liability for whatever incurred harm, injury, or accident within the term of the agreement.

Useful Tips to Draft a Marketing Agreement

If your company prefers to leave the advertising, promotion, and public relations for new products at the hands of marketing agencies and consultants, then it’s best to have a well-written and comprehensive marketing agreement. Marketing agreements must cover the scope of work and the complete timeline of events under the arrangement. Below are helpful tips in drafting a marketing agreement for advertising purposes.

Tip 1: Incorporate an Exclusivity Statement into the Agreement

Most marketing agreements indicate an exclusivity statement detailing and granting exclusive rights to a client or agency for the service of a particular product within a definite territory and timeline. The document must identify the client and consultant in structuring the agreement. The services the marketing consultant provides the client company include product or event advertisements, press releases, media conferences, social media promotions, promotional events, product launches, brochure handouts, among others. Most importantly, it states that no other agency handles the marketing services during the agreement’s duration.

Tip 2: Specify the Essential Details

Clearly indicate the start and end dates of the agreement. Some clauses give the agency the right to continue promoting or marketing products for another year after the expiry of the arrangement. It must also indicate the exact amount of payment to be prepared by the client and when the due dates for these payments are possible. If the agreement states for a monthly payment, it specifies the dates for settling the dues.

Tip 3: Be Aware of Possible Variations in the Process

It is best to tailor your marketing agreements according to the project you are working on. These project-specific marketing agreements harbors similar statements, clauses, and provisions to a general marketing agreement with content like the scope of work, payment terms, and generated timeline. However, project-based and general agreements focus on various work, and there are instances where price negotiations happen. It is advisable to keep this variation in mind as it happens often in the field of marketing.

Tip 4: Write Down the Guarantees in the Agreement

Marketing ventures have no definites and certainties because consumers respond differently to advertisements and campaigns. It is necessary to indicate a system criteria to estimate the marketing consultant’s productivity by the agreement’s termination. Include audit checks to go over the sales trend along the timeline. It is also best to execute decisions based on predetermined sales trends and industry averages. You can also measure customer satisfaction, customer loyalty, and employee involvement in marketing efforts through the use of employee questionnaires and surveys.


What is an advertising agreement?

An advertising agreement ensures that an advertiser and the identity employing the service or hosting the advertising understands their responsibilities to each other and agreeing on the possible compensation, whether monetary or not, for the arrangement.

What is a branding agreement?

A branding agreement or a brand partnership agreement identifies the rights, restrictions, responsibilities of the parties within the joint venture. It defines the co-branding strategy of the parties and must be carefully written and composed to protect the individuals or organizations signing the agreement.

What is the purpose of a marketing agreement?

Marketing agreements provide a clear and written explanation of expectations between the two parties. It details what the marketing agency can and cannot offer in terms of serving the purpose of the agreement, saving time and money in the process. It is clear on the deadlines and provides specifics about remuneration, establishing a positive relationship. It also ensures that the intellectual property of both parties is intact. It is clear on the penalties for the failure of submitting deliverables and provides the basis for early agreement terminations.

If you are looking to create a marketing arrangement with a consultant or agency, it is imperative to be knowledgeable on the concept of these documents. A company needs to draft a marketing agreement because it serves as a legal document you can use when the turnout of the agreement is in shambles. Remember that the best marketing agreement serves its purpose and under the supervision of a knowledgeable attorney and adhering to the vision of the client. Create a marketing agreement for your next marketing service by downloading and using the available marketing agreement templates above!