An influencer marketing contract is an agreement between you and an influencer. It is vital to have this agreement to protect both parties from any legal issues. This includes payment and taxes, and copyright protection.
Hence, the contract should outline the terms and conditions of the collaboration. That’s because an influencer contract agreement ensures that both parties are on the same page.
Whether you are using contract analysis software or drafting one yourself, it would be helpful to know what to include in the agreement.
Duration Of The Contract
The contract should include the duration of the contract. The influencer should know how long they will be working with a brand.
Influencers need to know how long they will be working with a company to plan and have enough time to create content for their followers. It should be specified in the contract how long the influencer will promote a product.
The length of time can range from 1 month to 1 year or more. It is crucial to decide how long you want your influencer to promote your product in your marketing campaign.
Detailed Scope Of Work
Describing the scope of work in detail is necessary for an influencer contract to be fair and legal. It is essential to include all the details about what the influencer needs to do, how they will do it, and when they will do it.
Influencers are not employees or contractors.
They are self-employed social media users with a large following. They use various social media platforms to promote products and services for compensation.
You should be clear about their expectations for the influencers. Doing so can lead to a more successful campaign with better results because both parties know what they are getting into.
Compensation Details
Including compensation details in an influencer contract is essential. That’s because this ensures that there are no misunderstandings regarding payment. This is regardless of whether the compensation comes in monetary value or a token of appreciation. That’s because an influencer can also be compensated by receiving free products, discounts, or other perks as long as they agree to it.
This is an excellent way to incentivize influencers and increase their loyalty to your company.
It is essential to include the compensation details in the contract, how you’re going to pay them when the pay is, and how much it will be.
Confidentiality And Exclusivity
The confidentiality clause stipulates that the influencer will not talk about any brand deals to anyone other than you. On the other hand, an exclusivity clause ensures that the influencer does not take on any other projects from competing brands.
This ensures that the influencer will not work with other companies for a certain period, usually one year, to promote their products. It also provides no conflicts in marketing campaigns between both parties.
Approval Process
Make sure to cover the approval process for the content you want the influencer to post. This is important because it allows the company to approve the content before publishing it on their behalf.
You can use the approval process to ensure that the influencer is not posting anything that might damage your company’s reputation. You can do the same to ensure that you are not violating any laws. It also provides that they are not posting anything against their brand guidelines.
The last thing you would want is not to know the influencer’s content and have your business’s name and brand tied to it.
FTC Compliance
The Federal Trade Commission (FTC) is a government agency that protects consumers. It has strict guidelines for advertisers and influencers, outlined in the FTC Act of 1914.
According to the FTC Act, advertisers are responsible for ensuring that the claims they make about their products are genuine. They also need to make sure that any endorsements from influencers are truthful and not misleading. This means that if an influencer is paid to post about a product on social media, they need to disclose it in their post or video description.
The FTC Act also requires disclosing any material connection between your brand and your endorsers. This includes making product placements on an influencer’s social media posts. This includes telling any free products or assistance given by the business.
There are many ways that influencers can run afoul of FTC regulations, including not complying with their contract.
It is vital to include FTC compliance in an influencer contract so that both parties know what rules to abide by. This will help you avoid any legal repercussions and ensure that you have a healthy relationship with your influencers.
Content Ownership
The content is the most valuable asset of an influencer. You can use it to create more content, sell products, and create a personal brand.
Before entering into an influencer contract, you must understand how much your content they will own. This includes all the text, images, and videos created during the contract duration.
If you want to own an influencer’s content, make sure to negotiate with your influencer before signing any contracts.
It is essential to include the content ownership clause in an influencer contract. This clause should mention that the influencer cannot use any of the content generated for the brand without permission. This includes posting the content on their personal social networks or any channels not included in the contract.
The content ownership clause will make it easier for brands to control their brand messaging. It can also protect the influencer from committing copyright infringement.
Cancellation Or Grounds For Termination
Terms of cancellation or grounds of termination are essential to include in an influencer contract. If the influencer is not fulfilling their obligations, the company can terminate the agreement. This also means forgoing compensation since no service was rendered.
Including the Grounds for Termination clarifies what the influencer needs to do for your brand. Meanwhile, it also reminds you of your responsibility to the influencer.
Campaign Tracking
One of the essential parts of an influencer contract is to include campaign tracking links. This way, marketers will know how well the campaign is doing and if they need to make any adjustments.
Including campaign tracking links allows you to do the following:
- Track the published influencer content.
- Measure your influencer marketing campaign success.
The elements started above are an essential part of an influencer marketing contact. It would be best to include these to ensure a positive connection and engagement with the influencer you market with.
