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How to Create a Flawless Social Media Influencer Contract

May 26, 2020

influencer contract

Influencer marketing is one of the most successful marketing options used by brands worldwide. 

This is a great way to engage with leads, drive traffic, and generate sales. As companies invest in this form of business, it is difficult to know beforehand if the campaign will be profitable.

The challenge is not just that: many brands are unsure if the influencer will meet the requirements of the campaign. That is when the influencer’s contract becomes handy. Learn more about what an influencer contract is, tips on what to include in the agreement, and about a template that you can use for your next campaign.

What is an influencer contract?

An influencer contract is a written legal agreement document that covers all the necessary information of the campaign between the influencer and the brand. This contract includes from the date details of the campaign to how the influencer needs to share the information of the brand on social media. Once the first draft is sent, it might undergo some edits before the final version is signed by both parties.

Brands usually have a template that is often edited, depending on the influencer and the type of campaign that will be set up. For brands, it is convenient to keep track of the FTC requirements as it regulates influencer marketing procedures in terms of advertising. Those rules can vary overtime and depending on the country where the campaign is being launched, the influencer might need to follow different steps.

4 components you should include in an influencer agreement

As previously mentioned, no matter how big or small the campaign is, there should be an agreement signed by both parties. Here you will find the necessary elements that you should implement in your next influencer contract.

1. What content the influencer will be creating for you

This is one of the main components in every contract. As a brand, you need to set up the objectives and the type of campaign content that you want to see in social media. Here you will need to specify how your brand will be seen by the influencer’s audience. Expect as part of the conversation with the influencer, that they might have their own way to share content and communicate with their followers, so let them have some freedom when creating it. In this section you should include:

Type of content

This consists of the number of photo posts, videos, Instagram Stories, or even IGTV appearances. Choose the format that adapts better to your campaign and the influencer’s image. As well as the type of content, decide how many pieces of content will be shared.

  • Timing. When is the best time for sharing this content? Usually influencers have internal insights that show when their audience checks their content the most. If you have a Business Instagram account, you could also find out about this information. If you aren’t sure, ask your collaborator about previous campaigns and the timing when the content was shared. You can work with an influencer tool that shows the brand mentions for each influencer and the metrics for each of them, to have an idea of the influencer’s statistics.
  • Mentions and hashtags. Specify if the content needs to be uploaded with a specific hashtag or mention. The hashtag might be the name or the theme of the campaign and the mention can be your brand’s handle. This way you will be able to track the reach and awareness of each post.
  • Aesthetics. How do you want your brand to be projected to the world? Share your brand’s value and mission with the influencer, make sure their content follows very similar aesthetics in case you want to reshare it.
ig influencer

2. Guidelines, expectations, and requirements (metrics of success)

As part of the communication process with the influencer, you need to address the objectives that you are planning on obtaining by the end of the campaign. This is useful for them so they know what you are looking for as a brand and so that they can implement their influencer skills so those requirements are met. In an influencer marketing campaign, the most common objectives for a brand are:

  • Drive traffic. You might have launched a new website or you need people to access your online store. Influencers can add the link of this website in their posts and stories so you increase the number of users and sessions. If you want to measure these results, you can do so with Google Analytics.
  • Brand visibility. This is similar to the previous objective, but this depends on the channel you want to increase this visibility. Since most influencer marketing campaigns are done via Instagram, you could start by getting a better brand visibility against your competitors there which should generate more traffic to your website.
  • Reach a new audience. You might want to promote your product to a younger audience or in a new place. Influencer marketing can achieve this goal, but it needs to be clear that you need to find the correct influencer. Is not just where the influencer comes from, but more where the audience is from. You can find that out by asking this information directly to the influencer or by choosing an influencer marketing platform.
  • Promote a new product. Another great solution to launch a campaign. You might need a push to showcase a new product or service, and collaborating with an influencer can be a great idea.
audience location

3. Type, forms, and frequency of compensation

One of the key parts of the contract. Here, a brand should disclose the monetary or product compensation that will be arranged, due to the collaboration. Some influencer marketing campaigns send products instead of paying them. In this case, the value of the product should be stated in the contract.

No matter how the influencer will be compensated, a brand should take into account:

  • Time and frequency. When will you be paying or sending the products to the influencer. If they need to review your product, the brand needs to be aware that the influencer needs some time to try it and evaluate the efficiency. Also, consider that sometimes a percentage of the total amount is paid before the campaign starts and the rest once the campaign is finished.
  • Currency. Sometimes brands choose to work with international influencers who have different currencies. Determine if the monetary compensation will be in dollars, euros, etc. It needs to be clear so there are no misunderstandings that can lead into a complicated work collaboration.

As a brand, sometimes it could be difficult to know how much an influencer should get paid. Fortunately, you can ask the influencer for their media kit where they usually have this information but you can also use an influencer marketing platform to analyze this metric beforehand. That way, brands can have an idea on how much of their budget should be left on this part.

4. Legal obligations and documentation

As Instagram is used by millions of users everyday, sometimes it can’t be clear if the product that people see is a collaboration. Due to this, The Federal Trade Commission has released several requirements that influencers need to follow when they publish sponsored content. These guidelines are different in each country, being the United States as the one th the most. In Europe, companies should look into GDPR guidelines too.

As a paid endorsement, explain what FTC guidelines they need to follow in the contract. Most times this means that the influencer needs to write in their content #ad or #sponsored. There is also a feature on Instagram in which you can easily add this information. In the picture below, you can see an example of a sponsored post that has followed FTC requirements.

ad on ig
 

If you have a legal team, make sure the contract is reviewed by them. Especially when working with top influencers, it is better to be safe than to worry. Once the contract is completed and reviewed by them, send it through a secure channel that you were using to communicate with influencers.

Now that the contract has been received, negotiations between both parties can start. Be open to communicate with the influencer as different points might change. Sometimes, influencers might be working with other brands already and the start date might be delayed. Also, it could be the case that the product that they need to review doesn’t arrive on time and they need a few more days to make an honest review.

Influencer contract template example

Whether you are an organization or brand, follow use this contract template and adapt it to your needs, depending on the type of campaign that you will be launching:

INFLUENCER MARKETING AGREEMENT

In (city where brand’s headquarters are located), month, year

This section is to introduce the parties

This influencer agreement “hereinafter, Agreement” is entered into the date of the signature by and between (add name of influencer) with address in (add fiscal address of influencer) “hereinafter,influencer” and (add name of the CEO/director of the brand) as the director of (name of brand) with address in (fiscal address). Together, hereinafter referred to as “Parties”.

Purpose of collaboration

The (add name of the brand) wants to collaborate with (add name of influencer) in an influencer campaign called (add name of campaign). The campaign will be mainly set for (add details of the campaign).

Description of collaboration

The collaboration will take part between (add here the times of the campaign), influencer agrees to the following tasks:

  • Publications: Add the number of posts, Instagram stories, and other types of content
  • Publications must include: Add if there are hashtags, mentions, UTM tracking links, and other useful information for the collaborator 

Duration

The contract will have a duration of (add time) from the time the contract is signed, which the collaborator will adjust to the times and deadlines defined by (add name of the brand).

Particular relationship conditions

The influencer will provide a contact and a telephone/laptop with sufficient capacity to develop the content for the campaign. Once the campaign is finished, the collaborator will provide insights with the metrics that are available in their profile of each post. (Add other details here, such as the ownership of the content for the campaign and if the brand can repost this content).

Payment

The influencer will receive a monetary compensation of (add the fee here) for the campaign. This fee will be distributed by (add if the fee will be paid in the beginning, end or in different times). Once the first amount is delivered, if the first content doesn’t meet the expectations of the brand or it’s not done, the influencer must return that monetary fee. 

The influencer must send an invoice that includes a fiscal address and information in order to be paid for the campaign. Add relevant information here if instead of money, the influencer is getting a product delivered to their house.

Responsibility of advertising actions/FTC guidelines

The influencer will follow FTC guidelines by (add here the FTC guidelines of the campaign such as including #ad or #sponsored in posts). 

Confidentiality information

The influencer will keep the most absolute confidentiality regarding the performance of the contracted services, the result thereof, as well as any information related to (Add name of brand). The result of sharing this information will be (Add any legal action that the brand will take if this happens or a detailed NDA). 

Reasons for termination of contract

Valid causes of termination of the contract will be all those that are expressly included in the regulations applicable to it, highlighting the following:

  • Failure by the influencer to provide exclusive professional services for the (Add name of brand) there has been a written consent. 
  • Withdrawal of the influencer by prior notice to the Company
  • The influencer has shared personal information of the company

And for the record, they sign this contract in two copies, each of them for a single purpose at the place and on the date indicated in the heading, endorsing each and every one of the pages.

(Add signature of both parties)

Conclusion

As influencer marketing becomes more popular each year, a brand must keep the importance of a contract in mind. To keep both parties aligned with goals, requirements and steps that need to be followed, elaborate a contract agreement that will disclose all the necessary information for a successful campaign.

Keep an open conversation with your collaborator as there can be changes made in the contract, and always be proactive to edit parts in the agreement that will turn into positive results.

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