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.
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.
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.
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:
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.
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:
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:
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.
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.
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.
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 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”.
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).
The collaboration will take part between (add here the times of the campaign), influencer agrees to the following tasks:
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).
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).
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.
The influencer will follow FTC guidelines by (add here the FTC guidelines of the campaign such as including #ad or #sponsored in posts).
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).
Valid causes of termination of the contract will be all those that are expressly included in the regulations applicable to it, highlighting the following:
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)
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.