What every OBM needs in their Online Business Management Agreement
If you work as an Online Business Manager (OBM), or you have plans to establish an OBM business in the future, a service agreement that accurately covers you for the expanded set of skills you bring and responsibilities you undertake in this role is a necessity.
Whether you have always been an OBM or you have been a VA and moving into an online business manager role, I want you to be alert to the protection that your client contract should provide you. It only takes one issue for people to realise that what they have in place isn’t sufficient enough, so I’m going to share with you what you should have included in your online business management agreement, and why.
Looking for an agreement to bring on an OBM? Find our editable legal templates here:
The basics
As an online business manager your service agreement will need to go further than a typical VA agreement. You will very likely be involved with strategy, project management, client relations, management issues and you may even hire subcontractors or a team to help your client.
To encompass your role, responsibilities and limit your liability, your service agreement should cover:
The obligations that you have as an OBM
The obligations your clients have to you
Details of the specific project and/or your ongoing role with your client
Clear boundaries around your start and end dates, as well as how the agreement can be terminated and how much notice must be provided
The ability to add-on additional 1-on-1 strategy sessions (includes business consulting)
How the agreement can be updated in the future if required
Intellectual property protection for both you and your client
Confidentiality clauses
Password privacy and IT access to third-party computers, and appropriate disclaimers (in case something were to go wrong)
A clause that limits your liability, along with clear disclaimers
Information about your ability to subcontract to others and manage them accordingly
Information relating to charging of GST in Australia; and
Any other clauses or information you deem necessary for your protection and working relationship.
Many of the clauses and information that should be included in your business management agreement may be self explanatory, however, there are some that need further explanation.
The business management agreement essential extras
Here we delve deeper into the use of subcontractors, confidentiality, disclaimers for business strategy and software platforms, as well as strategy sessions, if you offer them.
Use of subcontractors
If you use subcontractors in your OBM business, you will need to have two separate agreements. The first is the service agreement with your client, and the second one is the contractor agreement with your subcontractor. In the service agreement you have with your client, you need to be sure you cover the freedom for you to choose the subcontractors you want, at your discretion. You do not want the client choosing them or vetoing your choice of subcontractor.
You should also consider preventing the client from directly dealing with any of your subcontractors, which could cut you out of the deal. You need to protect your ability to interact with your subcontractors, instead of inadvertently allowing the client to go around you to engage them at a cheaper rate.
The agreement you provide your subcontractor should contain non-compete and non-solicitation of clients clauses. This is what protects you from subcontractors who decide to cut you out and work with the client directly. While many subcontractors are great people who would never do that, you should protect yourself from the small percentage of subcontractors that would make poor choices and potentially damage your financial security.
Confidentiality clauses
As an online business manager you will likely be given access to a significant amount of confidential information. This might include the passwords to business accounts, financial records, employment or contracting details of team members, amongst other private information. If you are using subcontractors to deliver any of your services, you will also need to manage the access they have to the confidential information and intellectual property of your client.
It is very important that both your business management agreement with your client and your subcontractor agreement covers confidentiality very clearly. This also helps reassure your client that you will treat their details with confidentiality. Having these clauses in your contract also helps your clients understand that your subcontractors will also agree to keeping these details confidential. Extending confidentiality to your subcontractors can make it easier for clients to agree to work with you and allow you to select your own subcontractors, because they can feel more secure in your business relationship knowing this is detailed in the agreement.
Disclaimers for Business Strategy
Many online business managers offer online strategy sessions. In many cases, providing them strategy and plans to move forward with, is commonly a large part of the OBM role. However, there is also risk that comes with the creation and development of strategy at this level. For example, what will happen if you propose a strategy that does not help your client receive extra sales or experience the desired outcome?
It is very important that your OBM service agreement contains a disclaimer that states you are not able to guarantee outcomes based on the implementation of any suggested business strategies. You want to be clear that you will provide proper information and appropriate steps with your suggestions, but that you are not promising your clients any type of result. By doing that, you are protecting yourself from clients who may be frustrated if they implement a strategy and do not have success with it.
Disclaimers for Software Platforms
A lot of online business managers are proficient in platforms like Kajabi, Clickup, Xero, or Dubsado. Some OBMs are certified in those platforms. Having proficiency and certification is helpful in a number of aspects. It indicates you are an expert in that particular platform, and can really give clients the most value due to your thorough understanding of that platform.
These certifications often also allow you to receive an affiliate fee or kick-back when a client signs up for a software platform using your affiliate code.
This is definitely permitted, but it is also recommended that you:
Be transparent about the affiliate code and the fact that you get a kick-back when they sign up, so your clients can compare other options and make an informed decision as to whether they want to use that particular platform.
Be upfront that you do not know everything about a platform, even if you are certified in it, so clients understand that perfection should not be expected. Anything could happen, and you do not want to be held liable if the client is not happy with the platform, or it does not work perfectly for their needs.
1-on-1 sessions for clients
You do not have to offer 1-on-1 sessions for clients at all, but most OBM’s do. If you offer (or plan to offer) one-on-one strategy sessions to your clients, you need to make it obvious in your agreement that your time is valuable. Before engaging with the client in these sessions, be sure that your agreement details:
A cut-of for cancellation of the session, which is commonly 24 to 48 hours. If the client does not cancel ahead of that timeframe, you are then entitled to payment for the missed session.
What they need to prepare for the session, so you can get traction and more easily manage their expectations. It is extremely important that your client knows what to expect, and you both should be prepared.
Depending on what you offer, your agreement may also include details about the frequency of these meetings and set boundaries around the duties you have. That is, where those duties start, and where they stop. Inclusions like these ensure there is no doubt as to what is expected and ensures your time will be respected.
Your online business management agreement
Does your agreement cover you in the ways explored above? If you are already an OBM and have an agreement that you use with clients currently, review it to see if it covers everything outlined above, and ensure it is up to date and legally applicable.
Not only does having a comprehensive agreement reduce your liability and set clear boundaries and guidelines for clients, but it also provides you added confidence and peace of mind.
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If your agreement is not up to scratch, or you are looking to start as an OBM, take a look at our Online Business Manager Agreement Template. This is an affordable solution suitable for any OBM working with Australian clients. If you engage subcontractors or have plans to, also take a look at our Contractor Agreement Template.