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Science wig. sig. (xx053_at_big.seorf.ohiou.edu)
Sun, 18 May 1997 16:30:12 -0400 (EDT)

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Date: Mon, 19 May 1997 20:29:45 -0400
To: online-ads_at_o-a.com
From: Andy Bourland <andy_at_clickz.com>
Subject: ONLINE-ADS>> What's fair in an agent/website contract

Mike Pooler wrote:
>
> Let's say that the agent and the site decide to enter a relationship where
> the agent and the site split the income 50% each (and each handles its own
> expenses). The agent does all of the sales, and the site handles the
> content and promotion.

I'd say that 50% is a pretty hefty commission you are paying. 30-40%
might be more in line...

>
> How could the contract be structured so that if the site wanted to leave
> the agent, that the agent gets what's fair, based on the amount of work
> they did to build sales? Should the agent be entitled to income after the
> relationship is over, and if so, how much and for how long? Are there any
> precedents to help decide what's fair?

The key is the termination clause. I've seen agreements extend anywhere
from 1 to 6 months the amount of time the agent is entitled to a
commission based on previous sales. 90 days seems fair to me. I'll bet
if you check around a bit you can find some contract language from other
industries that might be helpful.

Hopefully you've consulted a lawyer???

******************************************************************************
A N D Y B O U R L A N D
VP Online Business Development Publisher
Andover.net ClickZ: The Daily Stop for Web Advertisers
http://www.andover.net http://www.clickz.com
******************************************************************************

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