Contract Negotiations

1. Jessica Gold
May 12, 2019
Contract Negotiations
The scenarios:
A. A marketing agency working with a graphic designer to provide content for (Stitch
Fix) a business’s external marketing campaign.
Negotiating With: Graphic Designer
Negotiating For: JG Marketing Design (Marketing Agency)
Marketing Agency Website: https://www.jgmarketingdesign.com
In this scenario I will be negotiating with the Graphic Designer for the marketing
agency, JG Marketing Design to create content for Stitch Fix’s marketing campaign.
Compensation
How much will the Marketing Agency be willing to pay the graphic designer for their
services? How much is the graphic designer expecting for payment? How, what, and
when will the Marketing Agency be paying the graphic designer? Knowing
compensation details is important to avoid confusion, delays, and non-payment
issues. This is important so that the Marketing Agency knows what they will be
paying the graphic designer, when they will be paying, and in what form for example
check, PayPal, cash, direct deposit etc...
Length/ Timeline
What will the length of the contract be? Knowing the length of the contract is
important to know how long the contract will be in effect for this business situation
meaning how long will the graphic designer be working on content for a business’s
external campaign for the JG Marketing Design (Marketing Agency). Knowing the
timeline including time frame of the project and when the work is expected to be
completed for Stitch Fix’s marketing campaign helps clarify the contract as far as
expectations and deadlines, in addition to length of contract. Creating a reasonable
time frame for the best results while also staying within deadlines and budget will
all need to be considered when deciding clear contract length and time frame
specifications for the contract.

2. Delivery Method
How will the content from the graphic designer be delivered to JG Marketing Design
(Marketing Agency)? Is a specific file format needed? Will the content be shared
through email, google drive, airdrop, dropbox, mail, or in person? Knowing how the
content will be delivered will eliminate confusion and will help the project move
smoothly. Delivery method is important to be able to receive the needed content for
Stitch Fix’s (business) external marketing campaign. It is important for the graphic
designer to know what is expected of them by the marketing agency and it is
important for the marketing agency to be clear of what is expected as far as content
delivery by the graphic designer to be able to stay within a particular timeline and
avoid disputes, as well as wasted time.
Copyright/Ownership Rights of Content
Who will have ownership of content “Under US Copyright law, the designer
automatically owns all rights to the work they do? If the proposal or contract
doesn’t specifically state that some or all of the rights will be transferred to you, you
are only implied the right only to use the work or reproduce (print) it. And even that
should be spelled out.” (Patterson, 2018). “There are 1) rights to display work, 2)
rights to reproduce work, and 3) rights to make adaptations (derivative works).”
(Patterson, 2018). Determining the rights in the contract is important to be able to
produce the needed content for the Stitch Fix marketing campaign and avoid
copyright issues. If brand identity content is created, then Stitch Fix will want to be
able to trademark the content as their own. All of these copyright matters need to be
discussed and decided on in the contract to be able to properly use the content as
needed.
Content Approval & Changes
How and by who will content be approved for Stitch Fix’s marketing campaign? It is
important to know who the graphic designer needs to send work to for approval
and guidelines for changes. How will the graphic designer receive requests for
edits/changes so that no misrepresentation occurs. Is the graphic designer willing to
make changes after JG Marketing Design looks at content and finds specifics to
change? Will there be a limit for the number of changes allowed? Knowing the
specifics for approval and changes is important for the entire business process and
to have accountability and clear guidelines as to what each party is willing to do.
This is also important to avoid confusion of what is expected and to know whether

3. the graphic designer has the resources and time to make changes and knows that
the content needs approval.
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B. A web content developer creating a marketing website for a new social media
application. (e.g a web developer creating a website for Snapchat)
In this scenario I will be negotiating with the Corporate Development Manager of Twitter for
the web content developer.
Timeline
What is the timeframe needed for completing the website for the content web developer?
Does the wireframe needed to be completed within the first week and what is the schedule
for website content needs for Twitter? Knowing the timeline is important for knowing how
long I have for specific elements of the website and for the final project in order to stay on
schedule and meet deadlines as well as understand what is expected and when it is
expected of the web content developer.
Compensation
What will the content web developer be paid for web design services? How and when will
Twitter pay the content web developer for their services? Knowing compensation for the
amount of work needed is important for the content web developer to feel fairly
compensated. Knowing payment is important to avoid confusion or compensation delays.
For content web development work, it is also important to clarify whether compensation
will be fixed cost, hourly, or retainer-based payment (Oliveri, 2017). Payment terms for the
content web developer need to be specific to stay on target with an agreed upon timeline
and for the content web developer to be able to get properly compensated by Twitter for
their time and work.
Expectations & Responsibilities
What is expected from the content web developer and what are their responsibilities?
Knowing expectations and responsibilities ensures that “all parties are clear on what role
they should play, how they should cooperate, and what the expected result of the

4. engagement is.” (Oliveri, 2017). Defining the work product helps make the goals and scope
of the content web development project for Twitter explicit (Oliveri, 2017).
Approvals & Changes
How and by who at Twitter will content be approved by for the website. What are the
guidelines for changes meaning is their specified number of times a revision can be asked
for by Twitter? How will changes be asked for and by whom will the content web developer
contact for approvals? Knowing specifics for approval and changes is important to know
the amount of time needed to dedicate to this project for the content web developer and to
know who to contact for approval and who to hold accountable for communication
between parties with approval and changes needed by Twitter.
Security Requirements
What security features will be needed for the website in order to protect Twitter? If any
security breaches occur in the future who will be held liable? Security and privacy are
always a major concern for Twitter and other social media related services. Security
specifications are important to know in order to protect the website, the content web
developer from being liable for any security breaches and Twitter from damaging their
credibility and brand loyalty. Being on the same page and setting limits for security
responsibilities will be important to avoid disputes later down the road. Content
management systems fall under security as well with having the option for open source and
proprietary. It is important for the client Twitter, to know the vulnerabilities with different
security options in order for their company to make informed decisions and not hold the
content web developer responsible for not fully communicating details.
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C. An independent contractor athlete or celebrity contract for event participation (e.g.
a race car driver signing with a race team for the Rolex 24; celebrity playing in a
Pro-Am golf tournament)
For this scenario I will be negotiating with Adobe Summit -The Digital Experience Conference
for Ann Handley attending and participating as a speaker at the event.
Compensation
What will Ann Handley be compensated for attending and participating in the event as a
speaker? Will travel expenses and accommodations be included or reimbursed? Knowing
how much will be paid by Adobe Summit and how and when it will be paid will help avoid
confusion over compensation. Budget and compensation must be defined in order to be

5. clear as to what costs are being covered and what costs will be Ann Handley’s (public
speaker) responsibility. This is important to avoid overspending and stay within budget
and for the speakers to know what perks they can enjoy by attending and participating in
the Adobe Summit.
Accommodations & transportation
Who is expected to arrange accommodations and transportation? It is important to know
who is responsible for making arrangements in order to make sure that Ann Handley has a
place to stay meaning a hotel room and travel arrangements planned such as flights and
rental cars or drivers. Confusion can easily occur and cause complications and extra
expenses if arrangements are not properly planned out. Accommodations could become
full and unavailable and Ann could get stuck somewhere believing transportation has been
set up when in fact it has not been.
Timeframe/Timeline
When will the event occur and what times will Ann be speaking and for how long? How
many days will she be participating and attending the event? It is important for Adobe
Summit and Ann Handley to be on the same page as far as time frame for speaking and for
length of time that is expected for participation and accommodations. This is important to
avoid wasted time and empty time spots for speakers during the event.
Content Approval
Will content and language need approval before the event? Do specific people need to
approve Ann’s material before her speaking event at the Adobe Summit? Are there any
specifics not to be mentioned? Knowing if approval is needed and if there are specifics are
not to be included in speaking event is important for understanding expectations and clear
guidelines. It is important for both parties to know what will be said and what will not be
said.
Scope
What is expected of the speaker for the event? Will there be meet an d greets, social media
requirements, Q&A’s, podcasts, interviews, or other requirements for attending and
participating in Adobe Summit? Knowing requirements/scope of event expectations is
important for Ann to know what her responsibilities are and to be aware of what Adobe
Summit expects her to do. It is also important for her to decide if Ann is willing and capable
of such expectations/responsibilities.
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6. D. A professional athlete or celebrity signing an endorsement contract to represent a
product (e.g. Rory McIlroy signing with Nike)
In this scenario Serena Williams (professional athlete) is signing an endorsement contract with
Nike.
Length
What will the length of the endorsement deal between Serena Williams and Nike be to include
in the contract? Knowing the length of the endorsement put in the contract is important to
know the amount of time the endorsement will take place for and when it will end in order to
plan out future deal options and to not breach contract for any specifics included during the
term of the endorsement deal.
Scope
What will the scope of William’s sponsorship activities be? Knowing the scope of sponsorship
activities is important for Williams in order to know her responsibilities an what is expected
from her in addition to the amount of time needed to dedicate to these activities. Will social
media, special appearances, advertisements, commercials, and wearing specific products fall
under requirements for the endorsement. It is important to know what is expected of Serena
and what Nike is interested in having Serena do.
Performance
Will the contract include royalties and performance bonuses? Knowing specifics on performance
holds accountability for Williams to perform to a certain level. Performance also requires a
certain level of success or revenue brought in often. Will early termination be an option for
underperforming? Performance specifics are important to know what is expected of the athlete,
Serena for endorsing Nike and whether Serena can have the option for early termination if Nike
is poorly performing.
Payment & Payment Terms
The compensation arrangement—how much and when will payment be received? Knowing
payment terms including if there will be royalties or bonuses for winning matches is important
to know. Knowing when and how much money is important for Serena to know what she is
entitled to and when and how she will receive it to avoid late payments, and frustrations over
compensation, in addition to knowing what format meaning by check, cash, direct deposit,
etc... Will products Serena is endorsing for Nike and keeping count towards payment terms?
Knowing clear payment terms helps each party know what will be distributed and in when.

7. Exclusivity
Is there exclusivity for Serena to only be able to endorse Nike and no other brand or specifics
like competing brands not being allowed to be endorsed by Serena. Is the endorsement
contract non-exclusive meaning Serena can endorse any brand without getting consent from
Nike? If exclusivity is desired is there a time frame for when it ends? Knowing specifics on
exclusivity is important in order to not breach contract and to know whether and which other
brands can be endorsed while endorsing Nike.
References:
Boundy, C. (2012, March 19). Contracts for Your Business: A straightforward guide to contracts
and legal agreements. Retrieved May 8, 2019,
from https://ce.safaribooksonline.com/book/small-business-and-
entrepreneurship/9781908003164
Oliveri, B. (2017, October 16). What Your Freelance Developer Contract Should Cover (Contract
Templates Included). Retrieved May 11, 2019, from
https://www.codementor.io/blog/freelance-web-developer-contract-2uncidz6la#payment-
terms
Patterson, S. (2018, December 18). Who Owns the Rights to Your Design Work? Retrieved May
11, 2019, from https://apexcreative.net/owns-design-work/