Fire an Advertising Agency
Successful marketing through an ad agency requires a solid business relationship. If that relationship falters, it costs you and your business time and money. When steps to remedy the situation fail, consider whether it's beneficial to continue working with the company. Depending on the severity of the situation, you may need to fire an advertising agency.
Steps
- Talk to your agency representative about your concerns. Give the agency the opportunity to address the problem. If they don't provide a solution in a timely fashion, it's time to consider more drastic measures.
- Read your contract.
- Look for the duration of the agreement. If the renewal is close, it may be less expensive to wait until the expiration date rather than trying to break your advertising contract.
- Search for language stating under what terms a party may terminate the agreement. If it specifies an at-will option, you may be able to do so by notifying the firm in writing. (There will likely be an early termination fee involved.)
- Show your agreement to an attorney who specializes in Contract Law. You must understand your rights and obligations under the contract before attempting to get rid of an ad agency. Breach of contract can be a very expensive legal problem; seek expert advice before you proceed.
- Prepare for a meeting with the agency.
- Create a written list of legitimate reasons why you are dissatisfied and may want to break your advertising contract.
- Note specific times, dates, personnel, phone conversation recaps, etc. that pertain to the list. Document as much detail as possible.
- Consider what the agency could do to remedy the situation. Under what circumstances, if any, would you be willing to continue the business relationship? Be prepared to discuss these options.
- Notify the agency in writing of your discontent.
- Address the letter to the decision maker who has the authority to void your contract.
- Summarize your list of reasons for dissatisfaction in the agency's performance. Keep the list factual and brief, leaving personal opinion behind. Ex: "Agency failed to disclose a delay on the start of our Christmas campaign causing a significant loss in Black Friday sales." Not, "Your incompetent rep forgot to send our commercials to the cable company. We wasted big bucks for a Black Friday commercial no one ever saw!"
- Request a meeting to discuss your business relationship.
- Keep a copy on file and send the original by certified mail.
- Meet with the decision maker.
- Discuss the concerns you addressed in your letter in a calm, but firm, manner.
- Answer any questions the agency may have regarding why you may want to get out of your advertising contract.
- Consider giving them the opportunity to make amends.
- If negotiations fail and it appears there is no way to salvage the relationship, calmly end the meeting.
- Terminate the contract.
- Meet with the attorney you consulted previously.
- Provide the detailed list of grievances you made for your files.
- Explain in detail what occurred during your meeting with the ad agency.
- Follow the attorney's advice and consider retaining him or her to mediate on your behalf.
- If mediation is out of the question and you're in a legal position to do so, have the attorney draft and execute a letter that severs your business relationship with the ad agency.
Warnings
- Do not attempt to get rid of an ad agency without consulting an attorney. Your legal options depend heavily on the wording and breaches involved with your particular contract. Expert advice is required.
