How to write an agency contract (+ contract management tips)

A strong agency-client partnership starts with a well-crafted, legally sound contract. Without one, agencies risk scope creep, confusion around deliverables, and, worst of all, missed payments.

A clear agency contract sets expectations for how the engagement will work, helping prevent miscommunication or disputes that could end the relationship prematurely. But writing contracts from scratch can be time-consuming, especially when legal language, payment terms, and deliverables all need to be just right.

Let’s look at how you can write a contract that protects your agency, supports your clients, and saves you time—from kickoff to renewal.

Keeping your agency’s contracts current can be a challenge—especially when each agreement varies based on the client relationship, scope of work, or specific services. With a high volume of contracts, it’s easy for important updates to fall through the cracks.

A centralized platform with integrated proposals, contract terms, and payments makes it easier to manage proposals, service agreements, and payments in one place. When scope changes—as it often does for an agency—you can use the Instant Bill feature to charge for out-of-scope work immediately, or you can easily send an updated proposal to reflect the new contract terms. 

With everything integrated in one place, Ignition helps keep agencies and your clients aligned on deliverables, pricing, and expectations at every stage of the relationship. 

Getting started is often the hardest part of creating a contract—especially if you’re not used to drafting formal agreements. These five steps will help guide you through the process of drawing up a clear, professional contract tailored to your client relationships.

Before you start writing, take a moment to define the purpose of the contract. This isn’t something you’ll write directly into the agreement itself; it’s a conceptual step that will help you structure it.

To clarify the purpose, consider whether this is a new agreement or a renewal. Are you bringing on a new client for an upcoming project? Or are you updating terms with an existing client, perhaps to reflect changes in scope, introduce new services, or implement a rate increase? What services will you be providing, and what are the overall goals of the business relationship?

Understanding the context will help you shape the content of your agency agreement, minimize back-and-forth, and set clear expectations from the start.

While details will vary from client to client, most agency contracts share a common structure. Start by outlining the key components of your arrangement using the following elements:
 

• Service and scope of work: List the services your agency will provide, such as SEO, content creation, or social media marketing. The scope of work should clearly define what’s included (timelines, deliverables, and limitations) so both parties understand the boundaries of the engagement.
   
• Deliverables and timeline: Specify what your agency will deliver (SEO audits, PPC campaigns, blog posts, etc.), along with start dates, deadlines, and any key milestones. Establishing a timeline keeps the project on track and gives clients full visibility into what’s coming and when.
   
• Client responsibilities: What does your client need to provide to keep the project running smoothly? This might include timely feedback, access to important resources like analytics or internal tools, or delivery of brand assets.
   
• Ownership: Define who owns the final deliverables and any related intellectual property (IP). Does ownership transfer to the client upon payment? Will your agency retain rights to specific materials, processes, or strategies? Be explicit about IP rights to avoid confusion or disputes down the line.
   
• Contract duration and termination: Agency agreements should always outline how long the contract will last, whether it’s a set term or an ongoing engagement. Include the start (effective) date and any renewal details, and explain how either party can end the agreement early. Be sure your termination clauses specify required notice periods, acceptable written notice methods (e.g., email, letter), and any conditions or penalties tied to early termination.
   
• Legal considerations: Include relevant legal protections, such as confidentiality clauses, non-disclosure agreements (NDAs), indemnity terms, copyrights, and governing law. Depending on your industry and region, you may also need to reference specific regulations or compliance requirements.
   
• Pricing and payment: Clearly state your pricing model (flat fees, hourly rates, retainers) and explain when and how payments will be collected. Include payment terms, accepted payment methods, and any late fee policies.
   
• Signing page: The final page should include designated fields for both parties to sign. Whether handwritten or captured via electronic signatures, these confirm that both sides agree to the contract terms and make the agreement legally binding.

Having an outline makes it easier to create a contract for every new client your agency works with. Once it’s in place, fill in each section with details tailored to the client, such as their name, contract dates, and the specific services your agency will provide.

If your contract includes pre-written legal language—like copyright clauses—you may need to revise or update certain sections for accuracy. Include client-specific terms around payment, timelines, and responsibilities to help avoid disputes or miscommunication down the line.

Having legal information in your contract doesn’t automatically make it a strong legal document. It’s essential to consult a contract attorney or business litigator to review the details, flag any issues, and ensure it protects your agency’s interests.

This step reduces the likelihood of arbitration or legal action later and gives both you and your client confidence in the agreement. A quick review now can save you from costly complications in the future.

Once your contract is ready, it’s time to send it off and begin working with your new client. Before sending, ensure your branding and any design elements are included to maintain a polished, professional look.

Next, send the contract to your client for a signature. Once both parties have reviewed and signed, store a copy for your records and provide a downloadable version for your client to wrap up the process.

You don’t need to build the entire agreement from scratch every time. Using an agency contract template that already includes core components helps save time and reduce stress. All you have to do is fill in client-specific details and go!

Ignition makes it even easier to prepare agency contracts by offering fully customizable proposal templates directly within the platform. Ignition’s end-to-end proposal process empowers businesses to seamlessly send proposals with legally compliant contracts that can be customized to your industry and personalized to your business needs. With Ignition, proposals and contracts aren’t two separate documents—they’re unified, so your clients can agree to terms and scope of work in one step. 

In one platform, Ignition allows you to send proposals and contracts for e-signature, track agreement status, set reminders for contract renewals, and even collect payment details upfront for automated billin. Ignition automatically captures e-signature and payment info simultaneously, so agencies can confirm acceptance of terms, and collect upfront deposits or card details immediately.

Creating contracts on your own isn’t just time-consuming—it can also feel overwhelming, especially if you’re unsure how to handle common challenges that come with the process. 

From nailing the legal language to keeping contracts up to date, here are a few hurdles agencies often encounter and how to solve them.

Your agency contract needs to include relevant legal provisions (like termination clauses, non-compete terms, and protections around sensitive information), but you may not have the expertise to get the wording exactly right.

If key details are missing or the language isn’t precise, the contract may not be legally binding, leaving your agency exposed to disagreements over payments, deliverables, or client expectations.

Ignition’s industry-vetted contract templates reduce your legal burden while ensuring compliance with professional standards. You can also customize these templates for different services or clients.

Important note: Even if you use a template, be sure to get a final review from a legal expert to ensure your agency is fully protected and the terms are aligned with your business and industry standards.

Your agency needs a steady flow of cash to survive and grow. But setting clear payment terms—and communicating them effectively in your contracts—can be tricky. It’s easy to overlook important details, like specifying which payment methods are accepted or when payments are due.

Clearly defining payment expectations upfront helps prevent missed or late payments that could disrupt your cash flow. To simplify this process, Ignition enables agencies to establish clear terms and set up a payment schedule directly within the proposal and contract workflow. 

With Ignition, agencies can collect full or partial payment upfront while requiring clients to submit payment details before they sign the contract. This eliminates time wasted chasing payments and accounts receivable (A/R) issues while ensuring a steady cash flow from day one. 

Payment terms can be clearly outlined within the agreement, helping you communicate expectations upfront and reducing the risk of disputes down the line.

Keeping your agency’s contracts current can be a challenge—especially when each agreement varies based on the client relationship, scope of work, or specific services. With a high volume of contracts, it’s easy for important updates to fall through the cracks.

A centralized platform with integrated proposals, contract terms, and payments makes it easier to manage proposals, service agreements, and payments in one place. When scope changes—as it often does for an agency—you can use the Instant Bill feature to charge for out-of-scope work immediately, or you can easily send an updated proposal to reflect the new contract terms. 

With everything integrated in one place, Ignition helps keep agencies and your clients aligned on deliverables, pricing, and expectations at every stage of the relationship. 

Efficient contract management is key to building and maintaining a strong working relationship with your clients. It’s not just about having the right terms in place—it’s about how you manage updates, billing, and communication over time.

When you’re juggling multiple clients, it’s all too easy for a contract to get lost in the shuffle. A centralized contract repository helps your team stay organized, avoid duplication, and simplify contract updates for future use.

Ignition offers a single platform to store, track, and manage all your contracts while also providing access to related tools like billing, payments, and client communication. With everything in one place, it’s easier to stay on top of your contracts and deliver a smooth client experience.

Tracking payments and remembering to bill clients can quickly become a hassle as your agency grows. Automating these processes removes the manual workload, ensures invoices go out on time, and keeps revenue flowing consistently.

Ignition removes the stress,  thanks to automated billing and payments, so you can focus on growing your agency.

Even with the scope of work outlined in your contract, clients might request services that fall outside these defined limits. 

Offering ad-hoc services can strengthen your client relationships while creating valuable revenue streams for your agency—but only if you’re compensated for these extra services. 

With Ignition, it’s easy to get paid for out-of-scope work. The Instant Bill feature lets you charge clients for extra services at any time—without needing to create a new proposal. 

Writing a strong agency contract is only the first step. To keep client relationships running smoothly, you also need to manage contract updates, renewal cycles, payment terms, and service modifications—all while staying organized and protected.

Ignition gives you everything you need to manage the full contract lifecycle in one place. From customizable templates and electronic signatures to automated billing, invoicing, and instant payments, Ignition helps you save time, stay compliant, deliver a polished client experience, and get paid without the manual hassle.