Do I need any contracts with my partners?
When you invite a partner to Partnerplace, they automatically receive an invite with a link to a registration page. On that page they have to confirm they accept the Privacy Policy and Terms and Conditions. This is enough to get them started and in most cases is enough to continue working with them.
That being said, our Terms and Conditions do not specify the restrictions and edge-cases you might have in your particular partnership eg.
- We do not state how is the commission managed or paid out
- We do not state who has priority when it comes to lead submission (e.g. in a situation where 2 partners submit the same lead)
- We do not have any localized restrictions when it comes to selling your products. If you have partners who can work only in certain countries - you should sign a separate agreement with them.
We recommend signing a separate agreement with every partner you have included in your partner network. This helps to keep you safe and the collaboration professional.
What to include in a partnership agreement
While each partnership will be different and the final document should be written by a legal team, there are some elements typically found in partnership agreements. Here is a list to help you out:
1. Confidentiality: Trust is the cornerstone of any partnership. A robust confidentiality clause safeguards sensitive information shared between partners.
2. Partnership Duration: Define the period for which the partnership stands, providing both parties with a clear understanding of their commitment.
3. Geographic Limitations: Determine whether the partnership is bound by geographical constraints. Clearly outline the territories within which the partnership operates (esp. when it comes to sales) to avoid any ambiguity.
4. Compensation Structure: Transparency breeds trust. Lay out the compensation structure, including the amount and frequency of payments, ensuring partners are aware of when to expect remuneration for their efforts.
5. Tax Status: Address the tax implications of the partnership to prevent any unforeseen financial burdens.
6. Entry Fees and Benefits: If there are entry fees associated with joining the channel sales, articulate the payment terms and the corresponding benefits partners can expect to receive in return.
7. Decision-Making Authority: Identify the authorized personnel within each partner organization. This ensures efficient communication and swift action when necessary.
8. Market Development Funds (MDFs): Illuminate the workings of Market Development Funds within your company. Clearly define how partners can access and utilize MDFs to drive joint marketing initiatives and foster growth.
9. Indemnification: Shield both parties from potential losses with a robust indemnification clause.
10. Partnership Termination: While partnerships are built on the premise of longevity, it’s essential to outline the terms for potential dissolution. Define the circumstances under which either party can terminate the partnership and the procedure for doing so.
How to automate the agreement signing process?
When you invite a new partner into the system, they are created with the status "New". You can accept, reject them or change their status to "Under review". This status has specifically been created to mark the partners who have already joined your network, but have not yet become full partners (e.g. signed the agreement). In this case you negotiate & sign the contract outside of the system, but only when the partner's status is changed to "Accepted", they can start submitting leads and using the system.