Sales Customer Acquisition Cost Agreement

Sales Customer Acquisition
Cost Agreement

This Sales Customer Acquisition Cost Agreement (hereinafter referred to as "the Agreement") is made and entered into on this [Date], by and between [Business Name], with its principal office located at [Business Address] (hereinafter referred to as "the Business"), and [Your Company Name], with its principal office located at [Your Company Address] (hereinafter referred to as "the Service Provider").

WHEREAS, the Business desires to expand its customer base and has identified the need for professional services to assist in the acquisition of new customers;

WHEREAS, the Service Provider specializes in customer acquisition services, including marketing and sales activities designed to attract and convert new customers;

WHEREAS, the Service Provider has agreed to provide such customer acquisition services to the Business in exchange for compensation based on the cost of acquiring new customers, as further detailed in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to the terms and conditions set forth in this Agreement.

I. Scope of Services

A. Marketing and Sales Activities: The Service Provider shall conduct a variety of marketing and sales activities aimed at acquiring new customers for the Business. These activities may include digital marketing campaigns, social media advertising, email marketing, and direct sales outreach. The Service Provider will tailor these activities to target the Business's specified demographic.

B. Target Market: The Service Provider will focus its customer acquisition efforts on individuals aged 25 to 45, who are interested in [specific industry or product category], within the geographic region of [specified region].

C. Reporting and Tracking: The Service Provider agrees to provide the Business with bi-weekly reports detailing the progress of the customer acquisition efforts, including metrics such as engagement rates, conversion rates, and the total number of new customers acquired. The Service Provider will use [specific software or platform] for tracking these metrics.

II. Compensation

A. Payment Structure: The Business agrees to compensate the Service Provider based on a fixed Customer Acquisition Cost (CAC) of $100 per new customer acquired. This cost includes all expenses related to the marketing and sales activities.

B. Payment Schedule: Payments will be made on a monthly basis, within 15 days of the receipt of the Service Provider's invoice, which will detail the number of new customers acquired in the preceding month.

C. Adjustments and Reconciliations: If the actual CAC is found to be higher than the agreed amount, the Service Provider must notify the Business within 5 days of discovering this discrepancy. The Business and the Service Provider will then negotiate in good faith to adjust the compensation accordingly. Any adjustments will be applied to the next payment cycle.

III. Term and Termination

A. Effective Date and Duration: This Agreement shall become effective as of [start date] and shall continue in full force and effect until [end date], unless earlier terminated as provided herein.

B. Termination Conditions: Either party may terminate this Agreement upon giving 30 days written notice to the other party. In addition, the Business may terminate this Agreement immediately if the Service Provider fails to meet the agreed customer acquisition target for two consecutive months.

C. Effect of Termination: Upon termination, the Service Provider must provide a final report to the Business within 10 days, detailing all customer acquisition activities and results up to the termination date. The Business will pay any outstanding amounts owed to the Service Provider within 30 days of receiving the final report. All confidential information must be returned or destroyed, as agreed upon, and the Service Provider will cease all customer acquisition activities on behalf of the Business.

IV. Confidentiality and Intellectual Property

A. Confidential Information: Both the Service Provider and the Business agree to maintain the confidentiality of all information shared during the course of this Agreement. Confidential information includes, but is not limited to, customer data, marketing strategies, and sales reports. Neither party shall disclose such information to third parties without the prior written consent of the other party.

B. Intellectual Property: Any intellectual property, including marketing materials, digital content, and strategies developed by the Service Provider during the execution of this Agreement, shall remain the property of the Service Provider. The Business is granted a non-exclusive, revocable license to use such materials for the duration of the Agreement for the purpose of customer acquisition.

V. Representations and Warranties

A. Service Provider Warranties: The Service Provider represents and warrants that it has the experience and capability to perform the services described in this Agreement and that all services will be performed in a professional and workmanlike manner according to industry standards.

B. Business Warranties: The Business represents and warrants that it has the right to enter into this Agreement and that its engagement with the Service Provider will not violate any agreements with third parties or any applicable laws.

VI. Limitation of Liability and Indemnification

A. Limitation of Liability: The Service Provider's liability under this Agreement for any damages, regardless of the form of action, shall not exceed the total compensation paid by the Business to the Service Provider during the last three months preceding the claim. Neither party shall be liable for any indirect, special, or consequential damages arising out of this Agreement.

B. Indemnification: The Service Provider agrees to indemnify and hold the Business harmless from any claims, damages, or expenses (including reasonable attorneys' fees) arising from the Service Provider's negligence, willful misconduct, or breach of this Agreement. Conversely, the Business agrees to indemnify and hold the Service Provider harmless from any claims, damages, or expenses (including reasonable attorneys' fees) arising from the Business's negligence, willful misconduct, or breach of this Agreement.

VII. Dispute Resolution

A. Negotiation: In the event of a dispute arising from or relating to this Agreement, the parties agree to first attempt to resolve the dispute through direct negotiation. Each party will appoint a representative to meet and negotiate in good faith to resolve the dispute without the necessity of any formal proceeding.

B. Mediation: If the dispute cannot be resolved through negotiation within 30 days, the parties agree to submit the dispute to mediation, to be conducted by a mutually agreed upon mediator, before resorting to arbitration or litigation. Each party shall bear its own costs in mediation.

C. Arbitration: Should mediation fail to resolve the dispute, the parties agree to final and binding arbitration under the rules of the American Arbitration Association. The arbitration shall take place in the city of [City, State], and the costs of arbitration shall be shared equally by the parties, except that each party shall bear the cost of its own counsel and preparation. The decision of the arbitrator shall be final and binding on the parties.

VIII. Miscellaneous

A. Amendments: This Agreement may only be amended or modified by a written document signed by both parties.

B. Notices: All notices under this Agreement must be in writing and sent via email or certified mail to the addresses specified in the preamble. Notices will be considered given when received by the other party.

C. Entire Agreement: This Agreement constitutes the entire agreement between the Service Provider and the Business regarding the subject matter herein and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, of the parties.

D. Severability: If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions will remain in full force and effect as if the invalid, illegal, or unenforceable part had not been included.

E. Waiver: The failure of either party to enforce any provision of this Agreement shall not be deemed a waiver of that or any other provision.


In witness whereof, the parties have executed this Sales Customer Acquisition Cost Agreement as of the Effective Date mentioned above.

Service Provider








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