The Potential Dangers Of Exclusive Contracts

Here’s a horror story about exclusive contracts… 

Just kidding!

But in all seriousness now that I got your attention, I want to tell you about the dangers that exclusive contracts can bring.

Don’t get me wrong. It’ll be a great way to scale your agency.

But if you don’t know how to do it…

Exclusive contracts can be your downfall.

 So, what should you do when a client asks for exclusivity?

Don’t focus on the value of the contract.

Instead, consider the impact and opportunity cost of entering an agreement.

It helps if you create a contract with one thing in mind...

Focus on what’s best for your agency.

 >> Schedule a time with me to today to unlock your full potential.

 Make sure you review your contract closely. You can even check with a counselor and other advisors in the industry.

 Don’t hesitate to invest in an expert opinion.

When it comes to your agency, there’s no room for mistakes in the contract.

Because here’s the reality…

There are dangers when you don’t know how to create a contract.

Among those that you can face are indemnification and liability. 

That’s why an indemnity clause is a must. This clause refers to the contractual transfer of risk between you and your client.

 To understand what’s behind the legal lingo, let’s look at a potential situation.

Your client took a hit and lost money because of your work.

 If you don’t have an indemnity clause, this can make your agency take a financial hit as well. And if your agency is just starting, you probably can’t afford this.

Indemnity clauses are complicated but necessary.

It’s the difference between dodging a bullet and getting nailed.

So, make sure you consult with your legal team to protect your agency.

But what about liability?

 Make sure you limit your work to what you’re paid to do, and no more than that.

You should also consider making the indemnification mutual. That way, if your liability happens because of the client…

Your agency is protected.

There are other ways to keep the dangers of an exclusivity contract from harming your agency.

 The bottom line is to get clear on what the exclusive contract entails.

It’s all about the fine print.

Do you want tips about exclusive contracts?

 Schedule a discovery call with us.