As a copy editor, I have seen my fair share of agency contracts in my career. One thing that I have noticed is that many agencies and clients don`t take the time to consider what happens when an agency contract ends. This can lead to what is known as a « contract cooldown » period, which can affect both the agency and the client.

What is a Contract Cool Down Period?

A contract cooldown period is the period of time after an agency contract ends when a client cannot work with another agency in the same industry. This is meant to protect the interests of the agency, which has invested time and resources into building relationships with the client`s customers. It also protects the client from being poached by a competitor.

For example, let`s say a marketing agency works with a client in the fashion industry. When the contract ends, the client may not be able to work with another marketing agency in the fashion industry for a set period of time, like 6 months or a year.

Why is a Contract Cool Down Period Important?

A contract cooldown period can be important for both the agency and the client. For the agency, it protects their investment in time and resources building relationships with the client`s customers. If the client were to take their business to another agency immediately after the contract ends, the first agency could lose all the work they did for the client.

For the client, it can protect them from being poached by a competitor. If the client were to work with a new agency immediately after the contract ended and that agency had relationships with the client`s competitors, it could be seen as a conflict of interest.

How Long Should a Contract Cool Down Period Be?

The length of a contract cooldown period can vary depending on the industry and the type of work being done. In general, a period of 6 months to a year is common. However, it`s important to consider the specifics of each industry and each client`s needs when determining the length of a contract cooldown period.

It`s also important to note that a contract cooldown period does not necessarily have to be a complete ban on working with other agencies. It may be possible to negotiate exceptions, such as working with an agency that specializes in a different area of the industry.

In conclusion, a contract cooldown period can be an important part of an agency contract. It protects the interests of both the agency and the client and helps to maintain relationships between the two parties. By considering the specifics of each industry and each client`s needs, agencies can create effective contract cooldown periods that benefit everyone involved.