An Agency’s Handbook to Result-Based Partner Contracts
The driving force behind a result-based contract is that agencies can reap valuable results from their service providers instead of merely utilizing their services. This is quickly becoming a preferred business model, especially in the outsourcing world.
For advertising agencies, one of the most massive challenges is finding partners who utilize a quality-first approach when delivering creative services. As bad as COVID has been in the world, it has also shown businesses how to be more efficient and opened the door for new business practices. Advertising agencies must be able to cut down their operational costs while processing a large number of creatives.
A result-based contract with their creative design services partner provides the solution. Let’s find out how you can create such a contract.
Steps to Create a Result-Based Partner Contract
1. Define the Result to be Achieved Upfront
The first step is to define the result/s you hope to achieve. It must be both attainable and measurable to prove these results to your senior leadership. When considering outsourcing partners, sit with them and define these targets mutually – like determining the volume of graphic designs to be turned in every week. This will give both parties a fair and reasonable insight into possible constraints and what it’ll take to honor the contractual commitments.
2. Develop a Streamlined Business Process
When a process is streamlined, it experiences fewer mistakes and becomes much more efficient. When developing a result-based partner contract, it’s essential to include metrics that you as an agency can utilize to track the progress of the work. The service provider can use the same metrics to establish quality checks on their end.
This process ensures that the service provider and ad agency are on the same page. Both sides must be ready to adjust this strategy though because business changes rapidly. What is efficient today might not be efficient tomorrow.
3. Ensure that a Service Provider Has Experience
Service providers must be able to handle the challenges that come with result-based contracts. Your chosen vendor should not only have a standard process in place, but also the tools to handle a large volume of work. If your agency lands a big client, will the service provider be able to handle that much marketing material in a short amount of time? More importantly, can they do it without compromising quality? These are important questions to consider for the success of your business.
Top outsourcing providers will have dedicated teams that are capable of stepping in to help you during such peak times.
4. Outcome-Oriented Service Providers are Required
Most service providers can execute the tasks they advertise but when dealing with a results-based contract, mere execution is not enough. They must have experienced experts on board who emphasized quality. Additionally, the process they use must undergo thorough quality checks to ensure that everything is in order and in line with industry benchmarks.
5. Utilizes the Latest Tools
Having access to the right tools is essential. It allows service providers to meet the demands of high-end contracts in a timely manner. Top outsourcing providers use tools like Adobe Creative Suite to ensure that their work done on operational tasks like advertisement design is efficient.Service providers who don’t have access to the right tools will struggle to keep up with large volume orders, which can turn into a huge burden for you down the line.
Result-based contracting is quickly gaining popularity, so advertising agencies will be well advised to enter a partnership with new service providers using such a model. The key is to find outsourcing partners who can deliver on their promises. Both parties have their own stakes involved so it’s in everyone’s best interest to go into this with a results-based plan.
BackOffice Pro is a leading outsourcing partner for creating top-quality advertising content and is a great fit for ad agencies looking to capitalize on a result-based contract. Contact BOP today for a free quote and discover how we can make this possible!