joint venture marketing joint venture marketing joint venture marketing involves two or more businesses that come together with the intent of building a customer base and company profits. To ensure that the interests of everyone involved in a JV partnership are properly protected, a marketing contract is a necessity right from the very beginning of
joint venture marketing
joint venture marketing
joint venture marketing involves two or more businesses that come together with the intent of building a customer base and company profits. To ensure that the interests of everyone involved in a JV partnership are properly protected, a marketing contract is a necessity right from the very beginning of the agreement. This article will offer five tips for writing a successful JV marketing agreement with which all involved parties will be satisfied.
One of the longest portions of your JV contract may be your Terms and Conditions. This section will explain various aspects of your marketing agreement, including the length of the agreement. If your partnership will have an open-ended time frame, your terms and conditions may spell out the benchmarks at which you will reevaluate your partnership with the intention of either dissolving or continuing the agreement.
The idea of a JV partnership is to make more money, so management of the funds will be a concern in your JV marketing agreement. Your contract should spell out who is allowed to handle the funds for transactions like sales, refunds and accounts payable. It should also include how financial information will be shared and disclosed, so the monetary interests of both parties are fully protected by law.
A non-disclosure agreement is important for every member of a JV partnership. While it may be a no-brainer that larger companies won’t want sensitive information shared with others in their industry, it is equally important to protect the privacy and confidentiality of younger, smaller companies as well. An NDA keeps all information classified as “sensitive” under wraps, only to be shared with approved individuals and never with the industry at large.
Protecting Members against Lawsuits
Lawsuits are an unfortunate fact of life today, so your JV marketing contract should do everything possible to protect you, your family members and your company against legal action. Because your joint venture partnership will involve a large number of individuals, any of these persons may become involved in a lawsuit at one time or another. The indemnity clause ensures that no one else in the partnership can be held liable for another’s legal issues.
Using an Attorney
Because many business owners are intimidated by constructing a JV marketing contract, it is a good idea to consider working with an attorney who specializes in these types of agreements. However, there are also numerous templates on the Internet that will walk you through the steps of constructing an effective joint venture marketing contract without the added expense of an attorney.
Whether you draw up a JV agreement on your own, use a template off the Internet or hire an attorney, this contract will be the most important component of your JV partnership. A joint venture marketing agreement lays out the terms of your partnership so expectations are realistic and the purpose of the partnership is clear. By putting your agreement in writing, you will protect the interests of all of your JV partners and ensure your JV marketing efforts are equally beneficial for every business involved in the partnership.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.