Our Contract Review service ensures that your agency supplier contract is structured in the appropriate way, is based on a mutually equitable remuneration model and is transparent in intent.
Why do you need this service? Read on to understand more.
Contracts aren’t important – until they need to be enforced
We’re living through one of the greatest eras of change in the history of marketing.
Many contracts are not only out of date, but some are totally inappropriate to the intent. The difference between an independent contractor and an agent to a nominated principal is an important one. We need to challenge the thinking about contracts and make it seem we have the questions and the answers without being lawyers. We cannot give advice (legal) but we can ensure you have the right clauses in the contract to define and deliver the desired outcomes.
Marketing teams, and the agency suppliers of marketing teams, continue to change the ways in which they operate with each other.
With this in mind, it is perhaps surprising that so many contracts in place with agency suppliers are incomplete, out of date or both.
No-one wants to look at contracts every day. But contracts are like life insurance. When you do need them, you want to be able to rely on them.
As marketing evolves, so do contracts – and this can be a great thing
The proliferation of complexity in marketing can be tough to understand. Contracts have also become more difficult to define. The flip side is that with increased complexity comes increased opportunity to structure contracts in new and beneficial ways – beneficial, that is, to both the marketer and the agency.
How are the diversified services offered by your agency bundled, remunerated and linked to the core remit? How up to date is the scope of work? How appropriate is the remuneration model in context of what you’re actually doing as a marketer now? How transparent is the contract in areas of new technology or methods, revenue streams and revenue maturation? How is your agency measured against performance and what have they put at risk against achieving performance targets?
All of these, and many more, are questions that should be asked. We operate in a very competitive sector: your ability to extract maximum benefit from your agency contract, without strangling the agency and allowing it to also develop and grow, represents a fine balance, requiring specialist knowledge.
Reaching a strong contractual solution can have linked efficiency benefits
At TrinityP3, a significant part of our business is ‘pitching’. Yet we often find ourselves suggesting to our clients that pitching agency business can and should be avoided.
Why? Because pitching is stressful, pitching is expensive and pitching causes upheaval.
Of course it is often necessary to pitch agency business. But we are about maximising performance. If there are other solutions with existing suppliers that maximises potential performance, we will often recommend them.
One of the most common solutions is a contract review and refresh.
We can help you to optimise your contracts to mutual benefit
Using the decades of experience in our consultant base, and our data-led IP based on fifteen years of working with marketing teams and agencies through all kinds of projects, we can assess your current agreement and set you up to enter a contract negotiation or refresh. We provide:
- Assessment of your current contract against industry best-practice, including understanding of contract transparency, notable inclusions and exclusions, and grey areas that need to be addressed.
- Evaluation of the match between your contract and the reality of what your team or agency needs to deliver.
- Benchmarking of remuneration models and levels, resource structure and levels, extraction levels, and much more.
- Recommendation of strategies designed to optimise your outcomes and enable you to enter a negotiation with confidence.
Contract inefficiency can be a root cause of discontent and confusion. Don’t let it overshadow a good relationship or confuse your stakeholders.
Contact us here to arrange an initial conversation about how much this service could change your outputs for the better. We’d love to help.
When did you last review your agency contract?
Just as marketing has become increasingly complex, so have the issues surrounding the contracts that define these relationships between parties. Here, Darren Woolley talks about the contracts that work and those that don’t, and how TrinityP3 can work with your legal and procurement teams to make sure your contracts set you and your agencies up for success, not failure.
How long does it take to create a big advertising idea?
Ideas are the core of the advertising process. Big ideas. Small ideas.Here, Darren Woolley poses the question – how long does it take to create an idea? A blink of an eye? A minute? An hour? Perhaps a week? Or months? It is an important question, because the industry seems to pay for ideas on the basis of how long it takes.