Last updated July 4, 2024
What is a Marketing Contract?
A Marketing Contract establishes the terms and conditions for an agency or individual providing marketing services for a client. In other words, it’s a type of Service Agreement specifically for those in the marketing field.
Marketing services can include any of the following:
- Social media marketing on a business's social media platforms, such as Instagram, Facebook, TikTok, and Twitter/X.
- Digital marketing, which can include online newsletters, emails, search engine optimization (SEO), as well as social media strategy.
- Offline marketing on TV and radio, and print marketing within flyers and newspapers.
Marketing professionals and clients can use LawDepot’s Marketing Contract template to outline the services and payment details for a single marketing project or a long-term strategy.
Who are the parties in a Marketing Contract?
A Marketing Contract has two parties entering an agreement:
- The marketer is a freelancer, independent contractor, or business analyzing a client’s needs and producing marketing materials to expand their business. A marketer’s services may include creating and implementing strategies and campaigns.
- The client is a business or individual hiring a marketer to create a strategy or campaign to reach new customers.
A marketer is considered an independent contractor and may require a license for certain areas of the marketing industry.
Either party can initiate the creation of a contract. Marketing professionals can make one when they land a new client. Alternatively, a client can create one when bringing on a freelancing marketer to assist in tasks or projects, such as their social media marketing.
Why should I write a Marketing Contract?
It’s essential that marketers and their clients use Marketing Contracts to establish clear expectations and deliverables. Having a written agreement records a list of the services and deadlines, ensuring marketers fulfill their obligations. The contract also establishes the client's responsibilities, such as payment.
Though verbal agreements are legal, a written contract creates a record of accountability. Most importantly, an agreement can be used as evidence if there are any legal disputes regarding the contract or services.
Suppose a marketer creates a Marketing Contract with a client outlining a single campaign and they agree to limit the number of edits the client can request. If a client disputes the marketer’s services and refuses to pay for the work after two completed edits, the marketer can use their contract to support their claim for payment. A detailed contract shows that the client agreed to the service terms.
What does a Marketing Contract include?
A Marketing Contract includes essential elements that define responsibilities for both parties and create transparency in a business relationship.
LawDepot’s user-friendly questionnaire prompts you to add all the details needed to create a binding agreement in your jurisdiction, including the following:
1. Marketing services
A contract should provide precise details of the services and deliverable materials the marketer will produce for the client.
When outlining services, provide plenty of detail so both parties have very clear expectations. Giving comprehensive details can ensure that the marketer’s tasks are measurable. Also, indicate any important dates or deadlines. Services may include:
- Analyzing the client’s marketing needs
- Researching markets and competitors
- Forming a marketing strategy
- Establishing a brand’s voice and persona
- Designing and writing content
- Posting on the client’s social channels
- Producing advertisements
LawDepot’s Marketing Contract template allows you to create a contract that indicates which form of marketing will take place and can limit the number of edits a client can request.
2. Payment details
A contract will outline the financial details of an arrangement between the two parties. Payment details include:
- Billing or invoicing information (e.g., a weekly or monthly rate, commission, or other compensation)
- Any work-related expenses the client will cover
- Any retainers the client will provide to the marketer
- Interest on late payments
Additionally, marketers may need to subcontract professional services to complete a project (e.g., a photographer, a videographer, models, etc.). In that case, the contract can stipulate the client’s responsibility for reimbursing any fees incurred to subcontract other services.
3. Timelines and termination requirements
A Marketing Contract must include the duration of the services. Contracts can be for fixed-terms, single jobs, or indefinite periods for multiple jobs. The length of the contract depends on the client’s needs and what the parties negotiate.
Also, you must outline if and how either party can end the contract early. Generally, parties can end a contract by using documents like a Termination Agreement.
If both parties agree to an early termination clause, they must outline an acceptable notice period. Notice periods allow a party to exit the agreement without resulting in a dispute or repercussions like breaching the contract. The benefits of having a notice period include allowing time to resolve any issues that may have led one party to terminating the contract.
4. Intellectual property rights
Based on the negotiations between the parties, a Marketing Contract can determine who owns the rights to any intellectual property, such as generated plans and materials developed for the client. Depending on what the parties decide, they can outline either of the following options:
- The client receives complete ownership of all the materials produced
- The marketer retains all ownership of the materials generated
A contract can also specify if the marketer can use completed work for their portfolio.
5. Confidentiality clause
A confidentiality clause is essential for a Marketing Contract when a marketer handles sensitive client information.
Marketers may need access to a client’s Business Plans, trade secrets, or existing intellectual property to develop a comprehensive marketing strategy. A confidentiality clause creates terms for using private information and gives clients peace of mind their details are secure.
Do I need a witness when signing a Marketing Contract?
Though a witness is not a legal requirement for signing a Marketing Contract, it can help protect both parties’ interests.
A witness can assist in validating signatures if there are any future disputes or misunderstandings about the agreement. Should there be any questions regarding the agreement’s validity, a witness can also back up the fact that no coercion, forgery, or undue influence was involved while signing.
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