Online Alliances - Why Exclusivity Is A Critical Component

By Richard Chapo
Joining up with other parties to pursue internet projects is pretty much the norm on the web. Indeed, this is exactly what general affiliate agreements are all about. While general affiliate programs are open to everyone, what about custom agreements between two parties? If you are considering such a relationship, the issue of exclusivity is a critical one that must be given serious thought.

Let's consider a common business situation on the web. I do search engine optimization and am fairly well known for being proficient at it. I see a site that offers a product in a field I think I can dominate in the rankings. I talk with the owner of the site and we soon come to an agreement. I start working on the ranking program. After three months of hard work, I notice the site popping up in the rankings. There is only one problem. The site is number five on Google for our major keyword, but there is a bigger site carrying the product that is ranked number two. I call the site owner to find out what the heck is going on. He says we don't have an exclusive agreement and the relationship starts to fall apart.

Do situations like this pop up on the web? Yes, every single day. The core issue in these situations is exclusivity. Are the parties agreeing to work with each other exclusively or not? There are many different ways to look at the situation.

Let's say I am the site owner in the above example. Do I really want to do an exclusive agreement? No. What benefit do I get? The more marketing avenues I have, the better. Just think of an affiliate program. What is the goal? To get as many high quality affiliates as possible! In our example above, the SEO guru feels the exact opposite way. Why should he bust his rear end to get rankings when the product is being marked on other sites already in the rankings?

The situation can be a quandary. There is no right answer. Some deals break down over this issue while others find creative solutions that both parties can live with enough to move forward. The key is to make sure you think through this and other legal issues that arise with these types of relationships and then make a decision you can live with today and in the future.