3 ways to ensure a Successful Agency Partnership Agreement

Negotiating and securing a beneficial partnership agreement requires careful consideration and strategic planning. From my experience, rushing into a referral agreement often leads to consequences later on. While relationships and partnerships are built on trust, it is important to document agreements, especially when it involves business and money. This ensures that both parties are aligned and minimizes potential issues in the future.

  • Understand Mutual Needs & Resource: Thoroughly understand the needs and objectives of both parties to align goals and create a mutually beneficial partnership. Start by considering what you hope to achieve from this agreement. Once you have your answer, ask the other party the same question. While it may seem obvious that both parties want leads and new business, in my experience, these two things can be quite different. One party may have expectations of launching joint social and content campaigns, along with a larger event and additional marketing activities. The other party may simply expect to receive warm leads via email. In the end, both parties aim to generate leads that can eventually turn into new business. However, one approach requires a significant amount of resources and commitment, which may not be feasible or desirable for many founders.

  • Clear Terms and Expectations: To avoid misunderstandings and conflicts, it is important to clearly define terms, roles, and expectations. It is similar to the point I mentioned earlier, but it is always advisable to document these details for future reference. Agency owners are often busy and can easily forget or confuse conversations. If they send you a lead after 3 months and say “we agreed on 20%”, but you remember it as 10%, it can lead to awkward discussions and potentially damage the relationship for future leads. So even if you have an email you can re-reference that says “we agree 10% for the first 3 months of the agreement” that will help massively with cleaning up conversations like this. From my experience, this always happens, and it’s not due to bad intentions. As I mentioned, it’s simply because people are busy and may have mixed up agreements they had with another partner.

  • Flexibility: It is crucial to be open-minded and adaptable in negotiations. Being willing to adjust terms and find compromises can lead to a win-win outcome. When entering into negotiations, it is recommended to start with terms that are slightly more favorable than what you actually want. This allows room for negotiation and the possibility of reaching a mutually beneficial agreement. It is important to be prepared for the possibility of being knocked down in your initial offer, but maintaining flexibility ensures that you can still work towards a favorable outcome.

Ultimately remember you are trying to help each other, relationships are based on trust not a legal contract. All of these points are just to help cover yourself and help you, you may never need to revisit them again. Effective negotiation involves understanding needs, setting clear terms, and being flexible to ensure a mutually beneficial partnership. By employing these strategies, you can maximize the potential of your partnership and achieve desired outcomes.

If you would like to learn more about sourcing, nurturing, and elevating your agency partnerships, please refer to my guide available here. > https://learn.theagnc.co.uk/partnerships