Promotional Services Agreement: Campaign Deliverables and Compensation (Service Provider Guide)

In the creative and media production world, promotional companies live and die by scope clarity. One week you’re producing influencer assets, the next you’re managing experiential street teams and a performance campaign—often for the same client. When expectations aren’t pinned down in writing, “marketing support” turns into unlimited revisions, rushed timelines, and payment disputes.

A well-structured Promotional Services Agreement (also called a promotional marketing contract or promo services agreement) protects your margin, keeps campaigns on schedule, and ensures you get paid for what you actually deliver. This guide breaks down the two sections that create the most risk (and the most leverage) for service providers:

• Campaign deliverables (what you will produce, by when, and what “done” means)
• Compensation (how you charge, when you invoice, and what happens when scope changes)

Along the way, you’ll see practical clauses and drafting tips that you can adapt into your own promotional services contract template or promotions company agreement.

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Why deliverables and compensation deserve “extra” contract attention

From a service provider perspective, deliverables and compensation are where misunderstandings turn into real costs:

• Scope creep shows up as “small tweaks,” “can you also…,” and “it won’t take long.”
• Approval bottlenecks cause delays, but clients still expect you to hit launch dates.
• Ambiguous performance expectations (especially in marketing) create “results guarantees” by implication.
• Production realities (talent, location, inventory, media buying, platform approvals) add dependencies your client may not see.
• Payment timing can undermine cash flow—particularly with long lead times and up-front vendor costs.

Your contract should translate your operational reality into enforceable terms.

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Section 1: Campaign deliverables — how to define scope like a pro

1) Start with a “Statement of Work” (SOW) model

Most strong promotional engagements use a master promo services agreement plus a project-specific SOW (or “Campaign Addendum”) that includes the changing details.

This lets you:

• Keep legal terms consistent across campaigns
• Update deliverables, timelines, and pricing without renegotiating the whole agreement
• Add multiple campaigns under one umbrella relationship

Drafting tip: In the master agreement, say: “In the event of a conflict, the SOW controls as to deliverables, schedule, and fees.”

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2) Define deliverables in measurable units (not marketing language)

Avoid vague deliverables like “manage campaign,” “create content,” or “handle promotions.” Instead, specify:

• Quantity: number of assets, events, posts, edits, deliverable versions
• Format: 9:16 vertical video, 1:1 square, 30-second cutdowns, print-ready PDF
• Specs: resolution, codec, file naming, platform requirements
• Channels: TikTok, Instagram, OOH, email, retail activation, live event
• Final handoff: where files are delivered (Drive, Frame.io, Dropbox), who has access, and how long you store them

Example deliverable definition (plain language):

• “(6) short-form videos, each 15–30 seconds, 9:16, delivered as .mp4 H.264, with burned-in captions and separate .srt files.”

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3) Clarify what is not included (scope exclusions)

Exclusions are a scope management superpower. The purpose isn’t to be difficult—it’s to prevent silent assumptions.

Common exclusions for promotional service providers:

• Paid media spend (client funds directly, or you prepay as pass-through)
• Third-party costs (permits, venue fees, talent, stock, music licensing)
• PR outreach guarantees
• Additional concepts or “extra variations”
• Community management outside defined hours
• Website development or landing page build (unless explicitly included)
• Rush fees, after-hours work, or weekend staffing
• Reshoots due to changes in creative direction (vs. your error)

Drafting tip: Include a short “Assumptions” list (e.g., client provides brand guidelines and product by a date; client assigns a single approver).

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4) Set acceptance criteria: what counts as “approved” and “complete”

Deliverables should not live in endless revision cycles. Add:

• Review periods (e.g., client must respond within 3 business days)
• Acceptance criteria (brand compliance, technical specs, agreed messaging)
• Deemed acceptance (if no response after the review window)

Why it matters: If the client doesn’t respond, your timeline shouldn’t collapse—and your invoice shouldn’t be held hostage.

Example clause concept:

• “Client will approve or provide consolidated feedback within three (3) business days. If Client does not respond, deliverables are deemed accepted.”

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5) Control revisions (rounds, scope, and what counts as a revision)

For creative & media production, revisions are predictable—infinite revisions are not. Specify:

• Number of revision rounds included per deliverable
• What a “round” means (consolidated feedback in one message)
• What is billable (new concepts, re-edits beyond included rounds, new formats)

Common provider-friendly approach:

• “Two rounds of revisions included. Additional revisions billed at $X/hour or $X per asset.”

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6) Schedule & milestones: tie the timeline to client dependencies

Your contract should make clear that your dates depend on timely inputs.

Include:

• Kickoff date
• Draft delivery dates
• Review windows
• Final delivery dates
• Launch dates (if applicable)
• Dependencies (client approvals, access credentials, product availability)

Drafting tip: Add a timeline adjustment clause: delays caused by the client push deadlines day-for-day.

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7) Ownership, licensing, and usage rights—especially for promotional assets

Promotional work often includes video, photography, copy, designs, and campaign concepts. The contract should define:

• Who owns final deliverables after full payment
• Whether you retain ownership of working files (often yes)
• Whether pre-existing templates, methods, and tools stay yours
• Whether the client can edit or repurpose assets later
• Talent releases, music licenses, and usage term limits

Provider perspective: It’s common to transfer ownership of final paid deliverables, but keep rights to your pre-existing materials and know-how.

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8) Results language: avoid accidental guarantees

Promotional campaigns are affected by market forces, platform algorithms, client pricing, product-market fit, and timing. Protect yourself by stating:

• No guarantee of specific results (sales, impressions, ROI)
• Any targets are goals, not warranties
• You’re providing services, not promising outcomes

This is essential in any promotional marketing contract—especially if the client expects performance.

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Section 2: Compensation — structuring fees so you get paid on time

1) Choose the right pricing model for the campaign type

Your promotional services can be priced in several ways. The “best” model depends on what you control and what’s uncertain.

Common models:

• Fixed fee (project-based): Works when scope is clear and stable.
• Retainer (monthly): Great for ongoing promotional support and content pipelines.
• Hourly or day rate: Good for consultative or variable-scope engagements.
• Per deliverable / per asset: Transparent for clients; strong scope control.
• Hybrid: Retainer + hourly overages, or fixed fee + variable production costs.

Provider tip: If the campaign has unknowns (approvals, locations, number of variations), avoid pure fixed fee unless you tightly define assumptions and change orders.

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2) Payment schedule: deposits, milestone billing, and net terms

Promotional work often requires up-front effort and third-party spend. Service providers should consider:

• Deposit (commonly 30–50% upfront)
• Milestones (e.g., 30% at draft delivery, 20% at final delivery)
• Net terms (Net 15 or Net 30)
• Late fees (interest or flat fees where enforceable)
• Pause work for non-payment (critical leverage)

Provider-friendly best practice: Don’t wait until “launch” to invoice. Tie invoices to work completed and costs incurred.

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3) Pass-through expenses and third-party costs (and how to avoid disputes)

Promotional campaigns can involve:

• Paid media spend
• Influencer fees
• Street team staffing
• Printing and fabrication
• Location fees, permits, insurance
• Travel

Your contract should state:

• What counts as a reimbursable expense
• Whether pre-approval is required above a threshold
• Whether expenses are billed at cost or with a handling fee
• When reimbursement is due
• Whether you can require the client to pay vendors directly

Drafting tip: For high-spend campaigns, require the client to fund a media/production budget in advance.

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4) Change orders: the clause that saves your margin

Most disputes in a promotions company agreement come from scope changes without price changes. Your agreement should require a written change order when:

• Deliverables increase in number or complexity
• The client adds new channels or formats
• Timelines accelerate (rush)
• Strategy changes require rework

Core elements of a change order process:

• Written description of change
• Fee impact (fixed add-on or time & materials)
• Schedule impact
• Approval/signature or written confirmation before work begins

Provider tip: Make it easy: a one-page change order form or even an email format specified in the contract.

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5) Rush fees and after-hours work

Creative and promotional teams frequently absorb “emergency” turnaround requests. Include:

• Definition of rush (e.g., <48–72 hours turnaround)
• Rush surcharge (e.g., 25–50%)
• Weekend/holiday rates
• Client obligations to provide timely feedback

If rush work is common in your market, this clause prevents uncomfortable negotiations every time.

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6) Taxes, invoicing mechanics, and payment methods

Simple, but often overlooked:

• Who pays sales tax/VAT/GST (if applicable)
• Invoicing cadence and required invoice details
• Approved payment methods (ACH, wire, card + processing fees)
• Disputed amounts: client must pay undisputed portion on time

Provider tip: If you accept card payments, specify whether processing fees apply.

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7) Kill fees, cancellation, and termination payments

Campaigns get paused or canceled. Protect your time and opportunity cost with:

• Termination for convenience (client can end, but must pay for work performed + non-cancelable commitments)
• Kill fee (a set percentage for cancellation after kickoff)
• Non-refundable deposit (common to cover planning and reserved capacity)

Practical approach:

• Deposit is earned upon receipt (or earned upon kickoff), plus reimbursement of committed costs.

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Putting it together: A deliverables + compensation checklist (service provider)

Use this checklist when drafting or reviewing a promotional services contract template:

Deliverables

• [ ] SOW/campaign addendum clearly incorporated
• [ ] Itemized deliverables with quantity, specs, formats, platforms
• [ ] Scope exclusions and assumptions listed
• [ ] Timeline with milestones + client dependencies
• [ ] Review/approval windows + deemed acceptance
• [ ] Included revision rounds + rates for extras
• [ ] No results guarantee language
• [ ] Ownership/licensing aligned with deliverables and payment status

Compensation

• [ ] Pricing model fits campaign risk (fixed/retainer/hourly/hybrid)
• [ ] Deposit + milestone invoices protect cash flow
• [ ] Expense policy (pre-approval thresholds, pass-through rules)
• [ ] Change order process required before extra work
• [ ] Rush fees and after-hours rates stated
• [ ] Late fees + right to pause work for non-payment
• [ ] Cancellation/kill fee + payment for committed costs

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Common pitfalls promotional service providers should avoid

1. “Marketing support” as the deliverable
   Replace with specific outputs and defined hours/capacity.

2. No revision limits
   Revision creep silently consumes the budget.

3. Undefined approval process
   Multiple stakeholders = delays unless you require consolidated feedback.

4. Assuming you can reuse content freely in your portfolio
   Add a portfolio use clause (and note if client approval is required).

5. Blurry expense terms
   Especially risky with media spend and event production.

6. Implied performance promises
   Avoid language that could be interpreted as guaranteeing sales or growth.

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Sample clause concepts (not legal advice, but useful drafting language)

Below are clause concepts you can discuss with counsel and tailor to your jurisdiction and deal terms:

• Deliverables & SOW: “Provider will perform the Services and deliver the Deliverables described in each SOW.”
• Revisions: “Fees include up to two (2) rounds of revisions per Deliverable. Additional revisions billed at Provider’s standard rate.”
• Acceptance: “Client will accept or provide written feedback within three (3) business days; otherwise Deliverables are deemed accepted.”
• Payment: “Client will pay a deposit of 40% upon signing; remaining amounts invoiced at milestones set forth in the SOW.”
• Expenses: “Client will reimburse pre-approved expenses. Expenses over $___ require written approval.”
• Change Orders: “Out-of-scope work requires a written change order prior to commencement.”
• No Guarantees: “Provider does not guarantee specific outcomes; marketing results may vary.”
• Late Payment: “Overdue amounts accrue interest at ___% per month (or maximum allowed by law). Provider may suspend work for non-payment.”

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FAQ: Other questions readers ask about promotional services agreements

1. What’s the difference between a promotional services agreement and a general marketing services agreement?
2. Should a promo services agreement include a results-based bonus or performance fee—and how do you define metrics fairly?
3. How do you structure a retainer for ongoing promotional content without becoming “on-call” 24/7?
4. What are best practices for contracting influencer content within a promotional marketing contract?
5. How do you handle client-requested reshoots or re-edits caused by strategy changes?
6. What should a promotions company agreement say about portfolio use, credits, and confidentiality?
7. Do you need separate IP clauses for raw footage, project files, and final exports?
8. How should expenses and media spend be handled to avoid cash-flow strain on the service provider?
9. What’s a reasonable deemed acceptance window for fast-moving campaigns?
10. How do you draft a change order process that clients will actually follow?

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Clear deliverables and compensation terms aren’t “legal fluff”—they’re operational guardrails that let your team deliver great creative work without margin leakage. If you want to generate a polished promo services agreement or promotional services contract template quickly (with campaign-ready SOW language, milestone billing, revisions, and change orders), you can build one using Contractable, an AI-powered contract generator, at https://www.contractable.ai.