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All I can tell you is that I was at an AOR for a certain well known client and the client started “adding partners” for more specialized things, like multicultural, which is understandable because that was not something we did. But then they made us pitch against other agencies with similar capabilities or with capabilities that included what we did. Then one day, they made us pitch against another agency for large broadcast projects like SB spots. And then that agency took that piece of the pie. So when I left that agency, we were technically AOR but it felt like it was just some honorary title because we had to fight for every project.
Thanks for sharing your experience. That's crazy but quite believable unfortunately.
With some agencies that have shown growth in the tech and AI side, like us, I wonder how they handle situations where clients shop around for other tech partners to create a cloud-based application or SaaS product of some kind? It's not technically within marketing communications but I feel that an AOR client receives certain benefits in that relationship and it should command that those benefits be reciprocal. What are your thoughts on that?
I can’t recall seeing an exclusivity clause that was two way/reciprocal. Usually it’s about making sure the agency doesn’t work on the clients competitors, not the other way around.
Good for you. I like the concept, just have never seen it in a contract - or in practice, where clients freely use competing agencies for whatever they choose.
Treat your AOR the way you’d treat a lifelong partner: tell her she’s brilliant, surprise her with gifts, and keep the spark alive. But never betray her trust—or try to weasel out of it with semantics. And if the time comes to move on, don’t cheat. Just part ways gracefully for a younger model.
I would say client exclusivity is quite rare.
Why we do try to do is define how much scope/fee reduction (ie: they give scope/work to a competitor) is “effective termination” of partial or full scope and then that triggers a contractual process that includes a formal notice and notice period, ramp down or transition processes, etc.
I apologize for poorly communicating this. In simple terms, our AOR relationship provides a mutual understanding and respect that we won't pursue any work from a clear competitor of our clients with their written approval and they won't hire other agencies that overlap with our capabilities and solutions without our blessing. In a perfect scenario we would prefer if they would be open with us on what their needs are and whether or not they have any reservations about our ability to deliver in those areas. Generally that has been the case for us.
Where things have recently gotten confusing has been in the area of tech innovation. We're not necessarily a software development company but we have a relatively new division that produces AIaaS and SaaS solutions using our own semi-autonomous AI platform. A particular client of ours has been shopping around for a company to produce a cloud-based software for them when that is something that we can do and even better. But there is a grey area there since it's not "technically" within our agreed language that describes the marketing communications services we provide.
I'm of the thinking that it would be great for clients to, at the very least, check in with their AOR before venturing off and see if their agency has either the capabilities in house or can recommend an outside solution, whether marked up or not. Now you may say to me, "you're expecting too much of your clients. They don't owe you that courtesy." But a colleague and friend of mine once said, "if your client hasn't or is unwilling to share their business plan with you, they see you as a vendor and not a partner. Also, they won't be around long." So discussing additional needs with your agency seems like something partners would do.
Did I communicate that clearly? If not, perhaps it's time I leave marketing communications since I'm lacking a core skillset. :)