The terms and conditions of distribution of a product manufactured by another company. It is an agreement between the manufacturing company and the distributor.
Standard Marketing Agreements Address Several Key Issues such as:
Involved Parties – The introductory section of a simple marketing agreement lists the parties entering into the agreement. Additionally, the companies represented by each party should be included.
Services – Outlined in this section are the services and the extent to which such services are to be performed. It is of the utmost importance to list services in detail as ambiguity can lead to misunderstandings and unfulfilled obligations later on.
Compensation – This section outlines how the marketing company will be paid for their work. Common options include monthly fees or having the marketing company on retainer.
Term – The length the agreement will remain in effect is cited in this section. In addition, any options to extend the agreement and the prerequisites needed to exercise such options are listed. Moreover, Entrepreneur.com suggests getting the agreement notarized to preclude needless legal disputes concerning the terms of the agreement.