5 Essentials of the Social Media Influencer Contract
An influence Contract is an agreement between an advertiser and social media influencer to promote the product on social media. It is also known as a marketing contract.
What are the benefits of Social Media influence Contracts? There are many benefits of having social media influence contracts, like it provides clarity in expectations, limiting conflict, helping measure performance, sets rules and boundaries both Brands and Influencers need each other. Contracts also ensure that Brands spend their money wisely on the right person with a proven track record, and Influencers can be selective while working with Brands they trust.
What Is There In a Social Media influence Contract?
A social media influence contract should include all the key points that will protect both Brand and Influencer. While contracts vary from one another, the following are the essential elements that should be included in every social media influence contract-
- Introduction- This section should include a brief introduction of both Brand and Influencer, the purpose of the contract, and contact information of both parties.
- Services to be provided- This section should list all services provided by the influencer, such as creating posts, videos, tweets, etc.
- Compensation- In this section, the Brand and Influencer should agree on the amount of money paid to the influencer for providing the services.
- Term and Termination- This section should list the beginning and end date of the contract as well as conditions under which the contract can be terminated.
- Confidentiality- Both Brand and Influencer should agree not to disclose any confidential information about each other obtained during this contract without written consent from the other party.
- Other Terms- This section can include any other terms that both Brand and Influencer want to include in the contract, like social media platform(s) on which content will be posted, creative content usage rights, etc.
- Signatures- After all the terms have been agreed upon, both Brand and Influencer should sign the contract to make it legally binding.
Having a social media influence contract is beneficial for both parties. It establishes clear expectations and limits any potential conflict. It also helps measure the influencer’s performance and ensures that Brands spend their money wisely. If you are an influencer, it is important to have a social media influence contract before working with any Brand. And if you are a Brand, it is advisable to have a social media influence Contract with every influencer you work with.
Essentials of the Social Media influence Contract
In general, compensation is the payment given to a person in exchange for services. There are two types of compensation in an influencer contract: guaranteed and performance-based. Guaranteed Compensation: This is a flat fee paid to the influencer regardless of how many sales or leads they generate. Performance Compensation: This is a percentage of the total sale generated by each referral sent by the influencer, usually in the range of 10%-20%. It’s up to you as a marketer to determine whether or not you want to offer one or both forms of compensation in your contract.
In some cases, situational factors such as product cost, difficulty/costliness of obtaining traffic, etc., may preclude you from being able to offer performance-based compensation. This one is pretty obvious – if an influencer isn’t compensated for their time and effort, they’re less likely to be interested in working with you. When negotiating compensation, consider the influencer’s audience size, engagement rate, and other factors like overhead costs (e.g., equipment, travel).
Content Approval Rights
This is an organization’s right to approve or disapprove content that an influencer creates about their brand, products, or services. Before creating any content, the influencer must submit it to the company for approval. If the company does not approve of the content, the influencer cannot publish it. This clause gives companies a bit more control over what is being said about them online. It’s important to note that you as the marketer should give the influencer some degree of creative freedom – after all, they are the experts when it comes to creating engaging content. However, you should always reserve the right to veto any blatantly negative, inaccurate, or offensive content. In order to ensure brand compliance, it’s important to have a content approval rights clause in the contract. This means that the brand has the right to approve or deny any content that the influencer creates, regardless of whether it’s for paid or unpaid promotion.
Exclusivity is the requirement that an influencer only promotes your brand, products, or services and not those of your competitors. This clause ensures that the influencer does not promote competing brands while working with you. It’s important to note that exclusivity should not apply to content created outside of the contractual relationship (e.g., personal blog posts, tweets, etc.).If an influencer is already promoting a competing brand, you can negotiate for a period of exclusivity – usually 3–6 months – during which time they cannot promote any other brands. This gives you enough time to launch your campaign and measure its success.
Exclusivity Clause: Requires the influencer to only promote your brand, products, or services. They are not allowed to promote any competing brands. If you’re working with multiple influencers, it’s important to have an exclusivity clause in your contract. This clause prohibits the influencer from working with any other brands that are in direct competition with you.
The cancellation clause is what you include in your influencer contract to protect yourself from last-minute cancellations. This clause states that the contract will automatically continue for a predetermined period of time, even if either party decides to cancel it before then. Think of this as an insurance policy for your campaign. If anything were to happen and the influencer isn’t able to complete the project on time, you’ll at least have enough time to find another influencer or adjust your plan accordingly. Cancellation Clause: Allows both parties (the company and the influencer) to terminate the contract at their discretion without facing penalties like fines, fees, etc.
As you can see by now, many different clauses can be included in an influencer contract. Which ones you choose to include will depend on your specific campaign and the type of influencers you’re working with. But, some of the most important ones include compensation, content approval rights, exclusivity, and cancellation. If you’re not sure what to include in your contract, speak with a lawyer specializing in this area. They’ll be able to help you create a contract that’s tailored specifically for your needs. The cancellation clause is what you include in your influencer contract to protect yourself from last-minute cancellations. This clause states that the contract will automatically continue for a predetermined period of time, even if No one likes to think about things going wrong, but it’s always best to be prepared. The cancellation clause in a social media influencer contract allows either party to terminate the agreement for any reason – without penalty. So, if the influencer cancels at the last minute or you’re not happy with their work, you won’t have to face any fines or fees. This clause gives you some peace of mind, knowing that you have a backup plan in case things go wrong.
A non-disclosure agreement (NDA) is a legal agreement between two or more parties prohibiting disclosing confidential information. In the context of an influencer contract, this would mean that the influencer cannot share any of your company’s trade secrets or proprietary information with anyone else. This is an important clause to include if you want to keep your marketing strategies and plans under wraps. NDA: Prevents the influencer from disclosing any confidential information about your company, products, or services. Non-disclosure agreements are a legal way to protect your company’s trade secrets and proprietary information. If you’re not sure whether or not you should include an NDA in your contract, speak with a lawyer. They can help you decide if it’s necessary and how best to word it. An NDA is a legal agreement between two or more parties that prohibits them from disclosing confidential information. In the context of an influencer contract, this would mean that the influencer cannot share any of your company’s trade secrets or proprietary information with anyone else. This is an important clause to include if you want to keep your marketing strategies and plans under wraps.
So, these are some of the most important clauses that you should include in your influencer contract. Keep in mind that every campaign is different, so you may want to add or remove some of these clauses depending on your specific needs. But, at a minimum, you should have a compensation clause, content approval rights, exclusivity clause, and cancellation clause. And, if you’re working with confidential information, be sure to include a non-disclosure agreement. By taking the time to create a detailed contract, you’ll ensure that both you and the influencers are protected and know what’s expected of them.
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