Agency Commission Agreement Sample

If you are a newly formed advertising agency or an existing agency looking to revamp your commission agreement, it is crucial to get it right. A commission agreement is a crucial document used to outline the terms and conditions between your agency and a client. The agreement typically determines the commission rate and the payment schedule. In this article, we will guide you through the process of crafting an agency commission agreement sample.

1. Define the Parties

The first step to creating an agency commission agreement sample is to define the parties. This section should include the names and contact information for both parties, including the agency and the client. It is also important to specify the nature of the relationship between the parties, whether it is an independent contractor relationship or an employer-employee relationship.

2. Define the Scope of Work

The second step is to outline the scope of work. This should include a clear description of the services the agency will provide to the client. It is also important to provide specific deliverables and timelines for those deliverables. This section should also include any exclusions or limitations on the scope of work.

3. Commission Percentage

The commission percentage is a critical aspect of the commission agreement. This section should clearly outline the commission rate and how it will be calculated. Some agencies may charge a flat fee while others charge a percentage of the total media spend. The commission percentage is usually negotiated between the agency and the client.

4. Payment Schedule

The payment schedule should outline when the client will pay the agency for the services provided. It is best to include specific payment terms, such as the due date, the method of payment, and any late payment fees. The payment schedule should also include the commission payment (including the commission percentage and how it is calculated) and the payment for any additional services.

5. Confidentiality

The confidentiality section should outline how the agency will protect the client`s confidential information. This includes any personal data that is collected and how it will be handled. The confidentiality section can also include any restrictions on the use of the client`s data by the agency.

6. Termination

The termination section should outline how either party can terminate the agreement. This includes the notice period required and any penalties for early termination. It is best to include any specific termination clauses, such as breach of confidentiality or non-payment.

7. Governing Law

The governing law section should specify the law that will govern the agreement. This section should also specify the jurisdiction where any disputes will be resolved.

Conclusion

Crafting an agency commission agreement sample is a crucial step for any advertising agency. It outlines the terms and conditions between the agency and the client, including the commission percentage and the payment schedule. The agreement should also detail the scope of work, confidentiality, termination, and governing law. By following these guidelines, your agency can create a comprehensive commission agreement that ensures a successful partnership with your clients.