Section 1.1: The Challenge of Gaining Permission

Securing permission to utilize customer endorsements often resembles a business Catch-22: "The more essential something is, the more challenging it is to obtain."

To illustrate, I once received a query from the CEO of a startup that had just secured a significant contract. The previous client had explicitly forbidden them from using its name in marketing efforts. Concerned about a similar response from the new client, the CEO pondered whether it would be wise to use the new customer's name without permission and apologize later.

It's crucial to understand that the most probable response will be a firm refusal. While there are instances where a founder might proceed and apologize afterwards, this is not one of them. Using a customer’s name without authorization can lead to legal complications.

Section 1.2: How to Secure Permission

Start with the standard language in your contract:

"Customer agrees that the Company may use Customer's name and may disclose that Customer is a customer of the Company in advertising, press, promotion, and similar public disclosures upon the prior written consent of Customer (such consent not to be unreasonably withheld or delayed)."

This sets the groundwork for discussions. The key incentive is the promise of "written permission," which allows customers to agree now but have the option to refuse later. This approach minimizes risks, such as potential lawsuits or damaging your relationship with the customer.

If a customer is adamant about not allowing their name to be used, that decision is unlikely to change, whether you ask now or later. For instance, at Automated Insights, we sought "powered by" attributions for our content, but most declined. However, the Associated Press allowed us to use it temporarily, which made a significant impact due to its vast audience.

The essential takeaway is to ask everyone strategically; the right clients can provide valuable endorsements, even if they are rare.

Section 2.1: Online vs. Offline Marketing

When negotiating, customers are often hesitant to relinquish control over their names online due to concerns about reputation. This is the first aspect to consider letting go. However, if you can specify that their name won't be used in online content, focusing instead on presentations and PDFs, you might secure an agreement for other marketing efforts.

For offline marketing, you can negotiate permission to use their name in materials not intended for online distribution. Caution is essential, as any document could be digitized. Limit usage to personal emails, presentations, and verbal pitches, ensuring only the name is included and restricting its use to active customers.

A side note: While you should tread carefully, verbally mentioning their name to prospects can be challenging for them to regulate. Although it may reach them, proving harm or infringement is more difficult.