The agreement to work on an exclusive basis with your client can be confirmed either verbally or in writing. However, as a wise man once noted:
“Verbal agreements aren’t worth the paper they’re written on.”
The exclusive relationship is established verbally but should be confirmed in writing and signed off by both parties. If you are dealing with a reputable client who is sincere about utilizing your services on an exclusive basis, there should be no valid reason why they would not sign a document that confirms that to which they have already agreed. Therefore, we will concentrate on written agreements.
In the process of establishing an exclusive relationship you must determine:
Once these points have been clarified and you and your client have agreed to work on an exclusive basis, you need to construct the written agreement. Written agreements should be developed and signed whenever you establish a relationship that can be classified as an:
All of these agreements may include many of the standard provisions you currently have in your normal fee agreement. Additionally, the agreement should:
Although most of these agreements can be structured without utilizing an over-abundance of legal terminology or “remedies” clauses, the specific circumstances may require this approach.
Any written agreement should be entered into with caution and therefore you need to pay particular attention to three areas:
Exclusive relationships that are confirmed with written agreements are not developed easily. However, when properly established and structured, working on an exclusive basis allows you to better focus your resources in achieving results while positioning you as absolutely indispensable to the success or your client’s organization.
If you would like to receive examples of the various agreements that apply to exclusive relationships, just e-mail your request to: Terry@tpetra.com.
As always, if you have questions or comments about this article or wish to receive my input on any other topic related to this business, just let me know. Your calls and e-mails are most welcome.
View the whole ‘Exclusives‘ series: