This guide outlines how influencer marketing contracts work, and what you should make sure is in the agreement.
Influencer marketing is a goldmine for brands. With social media’s advent and continuing popularity, using influencers as part of your marketing strategy is just good business sense. But how do you engage an influencer to work for you, and what kind of contract will you need?
Our article will help you understand what to include in an influencer contract to help you get to grips with what an influencer contract is, when you will need one, and what needs to be in it. Take a look to learn more about influencer agreements.
What are influencer marketing contracts?
The influencer marketing contracts are a document that sets out the terms between a social media influencer, or the advertiser, and a company or brand. It can protect both parties and ensure they have a thorough understanding of what they must do.
Defining roles, obligations, and expectations is a huge part of a successful influencer arrangement and can be lucrative for both parties.
And influencer marketing contracts are also helpful in ensuring that any campaigns created by the influencer meet the requirements of the US Federal Trade Commission (FTC). The US Federal Trade Commission Act ensures consumers get legal protection from unfair business practices and deceptive or false advertising.
The FTC regulations mean that influencers must label any branded content, brand campaigns, or advertising as sponsored content to ensure all of their followers are aware that they are profiting from the campaign.
When do you need influencer marketing contracts?
As with any business partnership, we recommend creating an influencer agreement for all work your company does with a social media influencer. Influencer marketing is still an emerging form of advertising; as such, agreements can feel looser than traditional ones.
The less-than-traditional nature of influencer work does not mean you shouldn’t enter a legal agreement. On the contrary, a legal agreement between an influencer and a brand sets out time limits, compensation, and obligations for both parties.
It means that you and the influencer you are working with are both aware of your responsibilities and that the work you ask of an influencer gets done.
An influencer agreement will protect both of you and should be signed before you complete any work for the campaign.
What to include in influencer marketing contracts
Influencer agreements can feel a little intimidating, especially if you have never had to create one before. If you’re very apprehensive, consider these main requirements for your influencer agreement.
Work expected of the influencer
The services you expect of the influencer you are working with need to be as specific as possible. We recommend detailing everything from the social media platform you want them to use to the type of posts to the frequency of posts.
As influencers often work in various ways, it is vital to cater your influencer agreement to the influencer with whom you are working. The types of posts, social media platforms, and styles may differ across influencer agreements.
Brand control over influencer content
You may want to control certain aspects of your influencer’s content, from particular color schemes or very specific phrasing. Anything you desire for the posts they create needs to be specified in the contract – especially if you want to pre-approve content.
Competitors
When choosing your influencer, you must check out what they have promoted beforehand. While it’s good to use an influencer whose following is similar to your target audience, their work for you will not be as valuable if they’re promoting competitors’ products simultaneously.
You can add work for other competitors into the legal agreement to ensure that the influencer you are working with is only promoting your product to reduce the issue of competition.
Intellectual property
Your company probably already has an intellectual property strategy, but you must set out these terms in the contract. You must clarify if the brand intends to own the rights to the content your influencer creates as part of the campaign.
Owning intellectual property rights can be lucrative for companies and is something you should consider and negotiate.
Influencer data
Social media platforms offer an immense amount of analytic data and having access to this data can be beneficial. The data can tell you what worked in your campaigns and what didn’t, and it can greatly impact influencer agreements you make in the future.
Brand values
Any association with your brand must be a good association. If the influencer you work with suddenly begins making inappropriate or hateful comments, it could reflect poorly on you. In your contract, you can set out brand values that you expect the influencer to follow.
Regulatory compliance
As mentioned above, brands and influencers must adhere to specific regulations to comply with FTC rules. Adding this to the contract means that the influencer must abide by these regulations.
Payment
Whether you’re paying the influencer with free products or a set fee, this payment format needs to be set out clearly in the contract. You should also discuss non-social media costs, i.e., if the influencer has to travel for their campaign.
Confidentiality
Confidentiality is down to you and what you want to allow the influencer to disclose. It may include how you paid the influencer or the marketing strategies you shared with them. This clause should also specify what happens if there is a breach of confidentiality. If confidentiality is an essential aspect of your contract, consider creating a separate confidentiality agreement or non-disclosure agreement.
Termination
Whether there is a set end date to the campaign or you want to cover yourself, a termination agreement is essential. If things change for you or the influencer, you can legally end your agreement without any negative repercussions.
What you should keep in mind
Influencer agreements are legal documents that set out the terms of a business partnership or campaign between your brand and a hired social media influencer. They need to include several specific clauses to ensure that the contract protects the company and the brand. To establish an influencer agreement, consider your brand values and prioritize regulatory compliance. Set up an influencer agreement and build your brand effortlessly.
Author Bio:
Susan Noel is an experienced content writer. She is associated with many renowned business and law blogs as a guest author where she shares her valuable articles with the audience.
