An advertising representative agreement is an agreement signed between an advertising company, sales representative of that company and the client. The role of the representative is to sell the service or any product in exchange to which he receives a fee which is decided beforehand. Different terms and conditions are included in the advertising representative agreement for hiring the representative of sales.
Here the role of the representative is to narrate the various policies of a company to the clients. The media representatives might include newspapers, advertising agencies, television production companies, and social media sites. It is also known as a sales representative agreement or advertising sales agreement. It is one of the very important tools in the marketing business. Outsourcing is more often used these days by various companies in different fields of business including marketing of their products and services.
When Do You a Need Advertising Representative Agreement?
For attaining high sales many companies hire outsource representatives who can effectively do the marketing of their goods and services. The purpose of advertising representative agreement is to state the outline of the terms and conditions on which the representative agrees to work on following the federal and state laws related to the field of sales in order to advertise the products of the company. It can also be used by the sales representative agency or an individual who wishes to define the conditions with a company.
Key Terms of Advertising Representative Agreement Include:
- Contact information of the company, sales representative and the client
- Outline of the terms and conditions all parties agree upon
- Payment details
Inclusions in Advertising Representative Agreement
The agreement is signed between three parties who agree on the same terms and conditions stated in the contract. The three parties involved include:
- The company: a company who hires the representative in order to market its goods or services
- The representative: an agency or a sales individual who functions on the terms of the contract and laws related to sales
- The client: a person or an organization who is willing to buy the product or service
The agreement includes all the details and signatures of all three parties involved. The effective date is the date from which the agreement is applicable and the representative is answerable to the company in which he is hired.
How to Draft an Advertising Representative Agreement
Drafting an advertising representative agreement includes the following steps:
- Choosing the representative: The first step is to choose the sales representative individual or agency who would be advertising your product or service.
- Specifics of advertising and marketing: The second step is to lay out all the terms and conditions required to be followed by the representative and the company.
- Negotiating: The next step can be to negotiate any term which is not acceptable either by the representative or the company.
- Deciding the payment: This step includes the payment to be decided. The company should also pay the advance as described in the agreement.
- Signing the agreement: After all the terms and conditions are agreed upon, the parties are required to sign the agreement.
- Ensuring compliance: After drafting of the agreement, the company should also make sure that all the conditions are followed by the representative in addition to meeting the deadlines and tasks listed in the agreement.
Benefits of Advertising Representative Agreement
While hiring an outsourcing agency, the company needs to list specifics and conditions that are required to be fulfilled by the sales representative. A written agreement states all these conditions and terms of payment which all parties agree upon beforehand. The various benefits of the independent advertising sales representative agreement are:
- The agreement ensures that all parties agree on the same specifics or terms in order to avoid any future conflict.
- The agreement also includes the payment installments to be paid to the representative so that no further confusion occurs.
- The agreement also gives details regarding the ad so that, in case there is a problem with the logo or name, further actions can be taken easily.
- A grievance procedure is also included in the contract which can be followed in case of default in meeting the deadlines.
The consequences of not having an agreement might result in future conflicts between the parties related to advertisement details or payment.
Key Terms/Clauses in Advertising Representative Agreement
Apart from the basic information like the contact details of parties involved, effective dates, and payment details, the advertising representative agreements also include some other details. The essentials of advertising representative agreement include:
- Details of the advertisement or sales services provided
- Sales laws
- The method of payment
- Types of goods and services
- It also includes the right given to representative to use its company name and logo in the advertisement provided that the advertisement is fair and accurate, free of illegal content and has a reasonable quality.
- The agreement also determines the size and color of the ad and where it is going to be placed in the print publication. The agreement also determines that the TV ad is going to run in prime time or not.
Here is the sample of the advertising representative agreement. The same can be downloaded as a PDF file and include the terms according to your needs.
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