5 Examples of Clickwrap Workflows
Clickwrap agreements can be powerful additions to your business. Streamlined and versatile, clickwrap agreements are digital contracts that users agree to by checking a box or clicking a button to say “I agree.” Clickwrap agreements have become extremely popular because they require less effort to sign than traditional digital contracts. They also make it easier to present contracts to many people simultaneously and track and manage record trails more easily. Examples of clickwrap workflows include common contracts such as Terms of Service and Non-Disclosure agreements (NDAs).
You can use clickwrap for any business contract as long as you follow best practices. However, keep in mind that standardized contracts are better suited for clickwrap workflows. Standardized contracts refer to low-or-no- negotiation agreements that use the same language for every user, can be accepted by many signers simultaneously, and need to be executed quickly at a high volume. Since these standardized contracts don’t need to be individually edited or reviewed before being accepted, they are ripe for clickwrap workflows. By integrating clickwrap with other automated workflows like eCommerce checkout, customer onboarding, and partner onboarding, you’ll be able to increase your ROI like never before.
Here are five examples of clickwrap workflows you could adopt.
1. Non-Disclosure Agreements (NDA)
One of the contract types you should integrate into your clickwrap workflow is the non-disclosure agreement. An NDA is a binding contract that creates a confidential relationship between a person who wants to access sensitive information and who has this information. Since the relationship is confidential, the parties can’t share the information.
The purpose of an NDA is to protect information and ideas from being shared, stolen, or leaked into the hands of third parties and competitors. Organizations use NDAs to protect a wide range of information, including:
- Test results
- Inventions that haven’t been patented yet
- Client lists
- Product specs
- Business models
NDAs typically use the same language regardless of the parties involved since everyone wants to protect the same information and ideas from being leaked or stolen. According to this 2019 study, NDAs top the list of contract types with repetitive language and clauses. Compared to other types of contracts, NDAs have:
- 20% more sentence similarity
- 11% more identical sentences, including many sentences that are the same or functionally the same
There’s a lot of repetition in NDAs because they’re unlikely to be negotiated and don’t need to be tailored to a specific deal or situation, unlike personalized contracts such as enterprise agreements. As the same study notes, NDAs are just one of the first steps to generating a larger deal. That’s why Legal doesn’t need to spend much time individually drafting or editing them.
You can integrate NDAs into your clickwrap workflow by hosting them online, sharing them with users, and waiting for users to click a button or check a box to indicate they agree with the agreement. Say goodbye to emailing each user with an NDA and waiting for an electronic signature.
2. Terms of Service Agreements
Terms of Service agreements are also highly clickwrappable.
Putting Terms of Service agreements behind a clickwrap is a good idea because, like NDAs, they tend to use similar language and clauses regardless of the user. This is because they establish guidelines that visitors or users must agree to before using a website or app.
However, keep in mind that Terms of Service agreements may use different clauses depending on the user’s location. This is particularly the case due to the recent uptick in privacy regulations. Most Terms of Service agreements include the following:
- A statement that establishes what products or services are available to users
- Payment terms and options
- An explanation of what would happen if the user doesn’t pay for a service or product
- An explanation of what would happen if the organization is unable to provide a service or product
- How the terms of agreement affect the user and how they can terminate their relationship with the organization
- Guarantees or warranties for the products or services
- Deadlines for delivering services or products
- What legal jurisdiction governs this agreement
There’s no need to customize or send a copy of your Terms of Service to each user who signs up for your service or product. Instead, you can include a link to your Terms of Service on pages where you ask users to agree to it, such as:
- Sign-in and sign-up pages
- Checkout pages
- Installation screens
- Content submission forms
You should also consider adding a link to your Terms of Service in your website footer so that users can access it at any time. This will show your users that you’re dedicated to transparency and want them to know their rights. It will also help you prove your Terms of Service agreement is enforceable if taken to court. Companies that don’t make their Terms of Service easily accessible will get in trouble with the courts.
Terms of Service agreements are also good for clickwrap because Legal always regularly updates them for compliance. By putting Terms of Service behind a good clickwrap, customers will not only be able to accept it with one click, but Legal will be able to track versions and updates and keep thorough records about who accepted which agreement and when.
3. Influencer Agreements
Presenting influencer agreements via clickwrap can also be a step toward efficiency. Brands use these agreements to cover all the campaign information between a social media influencer and the brand, so getting them signed and executed quickly is a top priority.
Influencer agreements vary from campaign to campaign and generally require more customization than NDAs and Terms of Services since each influencer may have a different niche or marketing style. However, they all address the following:
- The start and end dates of the campaign, including a campaign schedule
- How the influencer will promote the brand on social media
- What social media platform the influencer will use
- What type of post (i.e., photo, text, or video) the influencer will use
- What types of keywords and branding the influencer will use in their post
- Who provides the images and copy for the campaign
- Who owns the product
- Who will approve of the content before it’s posted
- Standard clauses such as dates, names, termination clauses, terms and conditions, and an NDA to protect confidential information
Most influencers already have an idea of what they’ll get when you send them an influencer agreement. They only need to skim your contract to understand how the campaign will work, who owns the work product, and what they need to do for the campaign.
You should add clickwrap to your influencer agreements so influencers can quickly say “I agree” to your terms. This will save you a lot of time and energy, particularly if you manage many influencers at once. A few years ago, it was still common to have only one or two influencers, but now, many brands are doubling down on influencer marketing. To prevent Legal from being mired in details, brands like L’Oréal have decided to adopt clickwrap solutions to simplify the onboarding process and manage influencers.
With clickwrap, it doesn’t matter how many influencer agreements you have. All you have to do is send a digital clickwrap agreement to your influencers and wait for them to accept. Since the contract is mobile-friendly and only requires them to check a box or click a button to accept, they don’t need to go home or open their laptop to sign anything.
If they have any questions, they can leave a quick comment on the contract, and someone from HR can contact them. As a L’Oreal executive noted, it’s so easy that “it’s almost like texting a friend.”
4. Master Service Agreements (MSAs)
Master service agreements are also incredibly well-suited for a clickwrap solution. Like NDAs, MSAs are not the focus of a business transaction. They are a stepping stone towards a larger deal. By establishing terms that will govern all future agreements or transactions, MSAs allow parties to create a foundation for all future agreements and actions.
MSAs can help organizations save time by removing the need to create new guidelines every time you start a new project or deal. Every MSA includes the following clauses:
- Limitations of liability
- Dispute Resolution
- Intellectual Property Rights
- Work standards
By adding clickwrap to your MSAs via public workflows, making future decisions and planning future events will be easier than ever. Instead of drafting a new contract for each new project and sending them individually to signers, public workflows allow you to send contracts as URLs. This means that you can send the URL to signers and wait for them to click “I agree” after you’ve added a clickwrap to your MSA.
5. Statements of Work (SOWs)
Consider integrating clickwrap into your Statements of Work (SOWs) workflow. Statements of Work function as both project management tools and contract agreements. Used by Human Resources to outline project goals, deliverables, scope of work, and deadlines, SOWs can help vendors, clients, and freelancers work together to reach their common goals.
Every SOW should have the following:
- An overview of the project, including all project goals and milestones
- A breakdown of who will lead the project and give final approvals
- Timeline or schedule showing what needs to be done and when
- Project costs
- A work breakdown structure (WRS) that lays out each phase and task and explains how to complete each task
- A thorough explanation of the project’s deliverables
- Additional work requirements or needs, such as the software and tools needed to complete the project
You should incorporate clickwrap into your SOWs if you’re hiring and managing numerous freelancers and independent contractors simultaneously. With clickwrap, you’ll be able to send freelancers and contractors clickwrap SOWs through digital contracting solutions like Ironclad. This will help you cut down on the time and energy ordinarily spent formatting and uploading PDF or Word contracts onto sites and apps.
It will also help your signers sign more efficiently. After your freelancers and contractors receive your SOW, all they have to do is read through it and click a button or box at the end of the agreement to indicate agreement.
All in all, clickwrap workflows can be a great boon to Legal. By giving signers the ability to agree to a contract by simply clicking a button or checking a box, clickwrap workflows can greatly streamline the contract management process and boost your Return on Investment (ROI).
Clickwrap can be integrated into many Legal workflows, as discussed above. In all of these workflows, clickwrap enables you to embed contracts on your website or app to deliver a seamless user experience. It also helps you manage everything in one place, simplifying the contract management process for Legal and the rest of your organization.
Interested in experiencing the clickwrap difference? Request an Ironclad Clickwrap demo today.