Memorandum of Understanding for Digital Agency Partnerships

What a good one includes

• A highly detailed breakdown of the technical deliverables, software platforms, and specific services each partner is responsible for deploying.
• A clear assignment of key personnel, project managers, and developer hours dedicated to the partnership to ensure balanced execution.
• Explicit terms defining who owns the pre-existing code, who retains rights to the newly developed assets, and how licensing works post-termination.
• A precise outline of payment milestones, invoicing schedules, and revenue-split percentages for joint client acquisitions.
• Strict protocols governing how client data, proprietary software code, and sensitive APIs will be secured and shared between agencies.
• A step-by-step roadmap for resolving project bottlenecks and a clean exit strategy if the partnership needs to dissolve.

Common mistakes to avoid

• Failing to specify which clauses, like confidentiality and intellectual property, are legally binding while leaving general partnership goals non-binding.
• Relying on loose, subjective descriptions of deliverables instead of establishing concrete, measurable acceptance criteria for code or design assets.
• Neglecting to define which agency acts as the primary contact for the end client, leading to mixed messages and damaged reputations.
• Forgetting to protect your business by allowing a partner agency to bypass you and pitch services directly to your hard-earned clients.

Frequently asked questions