October 2, 2006

How to Write a Deal Memo in Under 5 Minutes

published this at 9:59 am

Getting the Deal Memo on Paper

power writing at work

I suppose it’s the same in every business. I know that it’s so in publishing. An important term — a term such as 1st pages — can mean something entirely different from one organization to another. Many folks make the mistake of thinking that when we use the same words that we mean the same things. Then in the middle of a project bad things happen, and great relationships sour. One way to get close to clear communication is to get down in writiting what is being agreed to.

Unfortunately, some jobs would be in serious jeopardy if we waited to start until a full-blown contract could be prepared. I can show you how to get the most important information together in one place in just a few minutes. In this case, it’s deal memo for intellectual property — a job definition that will make both the client and the contractor comfortable enough to begin working.

I’ve made a sample on the next page. Let’s look.

How to Write Deal Memo in Under 5 Minutes

In my experience, what often happens is that a client and consultant talk about a project and then say, Let’s put together something that shows how we might work together. In another scenario, two equal partners, trying to build something as Phil and I are, need to determine the details of how the relationship will work.

What happens most often in these situations is that folks try to gather too much detailed information. What’s needed is the basics so that both parties can move forward with confidence that important parts are covered. The assumption is that standard industry practice covers all else until the contract is written. As soon thereafter when the contract is ready, the information on the deal memo, easily fits into a contract as Exhibit A — add target schedule dates tied to payments, and your good to go.

A deal memo also stops conversation with other parties around that project.

Take a look at this sample deal memo and what it covers. It is typical for intellectual property, in all ways except that we were still negotiating how to split the online rights so, on this one, they are not addressed outright.

Deal Memo Sample

It’s still enough to send and sign to show that we agree on major points and preliminary work can begin. The team can talk about ideas, folks who might need to be contacted and hired, other supply and staffing issues, while we are working out the details of a project scope and proposal, and issues such as the way to address electronic rights.

It took me at least 15 times longer to write this post than it does to write the average deal memo. On Phil’s job the deal memo outlines that there will be one book worked on, that it will come from his archives, and who will own the rights.

Do you have questions or concerns at this point?

For another kind of job, you might write a 5-miute proposal. I’ll show how to do that in the next post.

Be irresistible.
–ME “Liz” Strauss

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Filed under Marketing /Sales / Social Media, Successful Blog, Writing | 16 Comments »


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16 Comments to “How to Write a Deal Memo in Under 5 Minutes”

  1. October 2nd, 2006 at 6:25 pm
    Diane Ensey said

    This is something I can use almost every day – thank you so much, Liz!

  2. October 2nd, 2006 at 7:48 pm
    ME Strauss said

    Hi Diane,
    Weolcome!
    I’m glad. It’s helpful. I like that!

  3. December 10th, 2007 at 5:22 pm
    Ida Muorie said

    I am interested in writing a deal memo to a financier for a television pilot.

  4. December 10th, 2007 at 9:44 pm
    ME Liz Strauss said

    Hi Ida,
    Welcome!
    That’s an interesting idea. Are you at the point of striking a deal?

  5. March 5th, 2008 at 3:04 pm
    Tyrek said

    May I have a convo with your expertise if available..Thank you! Im also trying to pitch a some creative ideas to major networks but I want to skip the middle man and hit them with a well-built proposal

  6. March 5th, 2008 at 8:09 pm
    ME Liz Strauss said

    Hi Tyrek!
    Got your email,
    Thanks for the invitation. A conversation about business is always interesting. I’ll be answering.

    Liz

  7. June 17th, 2009 at 4:38 pm
    Ron said

    Once a deal memo is signed can it still be modified or added too- for example in an long form lets say management agreement. If a deal law once signed and cannot be change in a management agreement?

  8. July 27th, 2009 at 5:58 pm
    Nathan Stevenson said

    Hi Liz, would this also suffice for partnering with an entertainment attorney on securing financing for feature films? Also what happens to client confidentiality when partnering with an entertainment attorney? ie. how does one protect themselves? I would be very interested in your perspective. It is a sizeable deal with 4 features.

  9. July 27th, 2009 at 5:59 pm
    Nathan Stevenson said

    Liz, could we have a conversation?

  10. July 27th, 2009 at 6:45 pm
    ME Liz Strauss said

    Hi Nathan,
    The idea is sketch something out before you go to contract. This is agreement of the main point before you start. If you can’t this down in a few minutes the contract will only find you at loggerheads.

  11. July 27th, 2009 at 6:46 pm
    ME Liz Strauss said

    Sure I’m happy to talk. My information is on the “Work with Liz” page in the sidebar of my blog.

  12. January 20th, 2010 at 7:16 pm
    Hana said

    Great blog. I love your quick and easy methods.

  13. October 17th, 2010 at 3:28 am
    Bel said

    This helped me alot to write a deal memo for my independant record label company.
    Thanks.

  14. February 20th, 2011 at 12:19 pm
    Alvin Williams said

    YOU HAVE GIVEN ME A TEMPLATE THAT I CAN USE IN ANY BUSINESS SITUATION!!

  15. June 12th, 2012 at 9:34 am
    Betsy Kent said

    Funny, I already do something like this. Instinctually I realized that there should be some kind of communication after the meeting and before the formal proposal. It’s sort of like “taking the temperature” of the deal. If there is any pushback to the memo, you know that you have not convinced the client that you are the best choice (yet) and you have some more stage setting work to do. Saves a lot of time and I like the formal template you have created. Thanks!

  16. June 24th, 2012 at 3:12 am
    M.Nicon said

    It’s helpful. Thanks.

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