Sales and Marketing Memorandum of Understanding

What a good one includes

• Clear definitions of the specific marketing channels, sales territories, or product lines covered under the agreement.
• A detailed breakdown of which party handles content creation, lead generation, customer outreach, and campaign management.
• A transparent outline of financial contributions, staff hours, and tools each partner brings to the table.
• Precise terms explaining how inbound leads are qualified, assigned, and how commission or revenue splits are calculated.
• Rules on how logos, trademarks, and newly co-created marketing assets can be used during and after the partnership.
• A schedule of critical launch dates, campaign phases, and joint progress review meetings.
• A simple clause explaining how either party can gracefully end the collaboration if goals are not met.

Common mistakes to avoid

• Failing to explicitly state whether the agreement is legally binding, which can lead to accidental litigation or unenforceable promises.
• Leaving the division of leads and revenue vague, which frequently causes disputes once money or valuable prospects start coming in.
• Omitting a clear confidentiality clause to protect sensitive business data, client lists, and proprietary marketing strategies.
• Neglecting to define specific, measurable key performance indicators (KPIs) to evaluate if the partnership is actually working.

Frequently asked questions