Advertising Reseller Contract

Payment Terms

[Edge]

I have a successfull niche site, very good traffic. I currently sell all the standard flavors of advertising (banner, cpm, cpc, directory, and static ads), and all sell quite well. I currently have five marketing organizations that resell my advertising space. All of my resellers are charged a wholesale price for my advertsing space. In general, they contact me with a particular customer and ask for a quote. I provide a quote for the requested services. All has worked well for several years.

I have a new potential advertsing reseller, whom wishes to come on board. They have produced a contract with nothing suprising except one item. In general the contract says they will do thier job and I will do mine. They have exclusive rights to any customer they represent for one year. To me, this goes without saying, I am not going to pull a customer out from under a hard working reseller.

The contract line item that bugs me, reads that in the event that thier customer does not pay, for what ever reason, that they can withhold payment from me. Currently, all of the resellers that I have are responsible for any space they purchase on my website. I view our relationship as a wholeseller - reseller.

Comments?

[Drastic]

>thier customer does not pay, for what ever reason, that they can withhold payment from me.

I'd stay away. It sounds like you have little to no control over how they do business or with whom, on the reselling end.

>I view our relationship as a wholeseller - reseller.

Exactly. You shouldn't be required to take a hit for their problem.