Businesses and organizations today may not successfully run their enterprise without implementing a strategic marketing plan. Companies often hire consultants and freelancers to perform one or two services, an idea which benefits the fast-growing gig economy and businesses in terms of cutting costs.
Sometimes, consultants and freelancers themselves may decide to do business together. If you are planning to team up with another consultant on a joint marketing campaign, a co marketing agreement should not be missing in the plan to protect your business and that of your partner. The contract is also useful in preventing misunderstanding between collaborating parties since it spells out the terms and conditions of the project from the on-set. You should consider using a co marketing agreement if:
- You want to place your products in someone else’s storefront to increase your sales.
- Your business is entering a joint marketing campaign or promotional sale with another business.
- Your business is planning to use the website of another company for marketing campaigns and many more.
1. Basics of a co marketing agreement
A co marketing agreement document is a written contract that specifies the relationship between two business that has agreed to work together in achieving some sets of a common goal. The document states how the parties involve exchanges, materials, tools, resources, and training in marketing the agreed products or services.
The agreement may be to jointly organize marketing and promotional campaigns for a third party when the parties involved are freelancers or individual consultants. Also, a co marketing agreement may bind businesses or individual freelancers carrying out the service for themselves.
In such an agreement, te marketing partners may carry out joint marketing campaigns or promotions. In exchange for the partnership and assistance, each party is entitled to a percentage of the total sales of products or services that can be directly traced to the efforts of the partners involved.
Entering a co marketing agreement help freelancers and consultants trim their cost of advertising since the marketing partners often jointly bear the burden of market promotions and advertisements.
A co marketing agreement document defines the payment provisions and terms of the relationship between parties; it states the marketing territories, contract terms, how disputes would be resolved, among other essential information.
2. Types of co marketing agreements
A co marketing agreement often takes the form of a collaborative content, which is often promoted before the audience of the parties involved. It is different from co-branding, a term that involves the creation of shared products or sometimes a group of products for the sole purpose of providing additional value to consumers. Most co marketing agreement documents rather promote the course of a co-branding agreement.
Co marketing agreements often work best when freelancers, consultants, or businesses involved share a similar goal or set of goals. A common goal may be to increase ticket sales or generate leads, among others.
Top among popular co marketing agreement contents include:
- Twitter chats
- Blog posts
- In-person agreement or online events
3. Drafting a co marketing agreement & its benefits
Co marketing agreements can range from simple to complex, depending on the nature of the project and what it needs to address. It helps in increasing the audience base of the partners as well as in the introduction of new product types. Entering a co marketing agreement can also help cut costs while making significant marketing progress.
An ideal collaborative agreement should cover:
- The terms of the agreement and the timeline of the project.
- Terms of payment
- Whether the agreement is exclusive and the terms of exceptions to exclusivity if any
- Whether there are restrictions on the authority of one part promoting the product or service of the other
- Government structuring on the project scope
- Conditions for termination.