Influencer marketing through social media has existed for over a decade. Over the course of the last decade, the marketing landscape has changed quite a bit, with the rise of micro and macro influences in between. Different social media platforms, like TikTok, have specialized in various demographics and content styles, focusing on a younger crowd. These social media platforms foster very engaged and dedicated communities that allow companies to target specific segments, making their awareness campaigns more effective, if done correctly.
This type of situation is where Influencer agreements come into play. These are documents that function very similarly to the scope of work agreements. They outline more than pay and duties, and understanding them is crucial for the success of any brand’s social media campaigns that involve partnering with another party. With influencer relationships, misunderstanding could result in negative outcomes and sour agreements.Influencers wield significant power over a brand’s reputation, with the ability to influence it positively or negatively
What Are Influencer Agreements?
An influencer agreement is, first and foremost, a legal document that precisely details the relationship between the influencer and the brand they are partnering with. To access and connect with their target audiences, brands seek out influencers with highly engaged followers.
The complexity of this agreement depends on several factors, such as the level of creative freedom granted to the influencer and the duration of the collaboration (whether a few posts or an ongoing partnership). On a deeper level, these agreements define the scope of work, including timelines, tasks, deliverables, compensation, and the influencer’s responsibilities. They also indirectly establish the brand’s financial commitments for the campaign by specifying any additional costs contained within the campaign.
What Are the Elements of an Influencer Agreement?
There are common structures and goals for influencer marketing campaigns, so the complexity of creating legal agreements is quite varied. These challenges also stem from the fact that nowadays, because influencer marketing campaigns can span a wide range of niches, from specific fields of knowledge to everyday hobbies, the complexity of creating legal agreements can vary greatly.
It’s better to analyze each partnership on an individual basis, but with that said, here are the most common elements of an influencer agreement:
- Tasks: This is the type of content (video, written, or images) that the influencers agree to create. It also includes the regularity of the posting and the platform they will use, such as YouTube, Instagram, TikTok, Twitch, or others.
- Timelines: A combination of deadlines and the time the agreement will last. This section might include the milestones or review dates to assess the agreement’s performance.
- Payment: A detailed account of the compensation for the influencer, including the total amount due and the payment method.
While those might be the core elements of the contract, the level of detail can be even higher with other sections that parties can negotiate before the start of the relationship:
- Content usage rights: This section delimits the balance between the brand’s desire for widespread use and the influencer’s control over their creative output.
- Brand Guidelines: While influencers often have unique voices, it’s important to provide them with directions over the brand’s messaging. Companies might want a desired voice and tone that matches their own for cohesive reasons. These guidelines include images, color, or fonts.
- Disclosure of Political Views: Some influencers may have strong political opinions that can impact how a brand is perceived by the public. The agreement can address whether and how these views can be expressed.
- Non-Compete Agreements: These clauses can restrict an influencer’s ability to promote competing brands for a specific period after the campaign.
- Termination: As with many other standard contracts, influencer agreements will have clauses that lay out grounds for termination, and these clauses will also include notice periods, penalties, and consequences.
- Dispute resolution: While good intentions are important when drafting an agreement, it’s wise to acknowledge that disagreements or disputes can arise during the length of any partnership. To resolve such conflicts efficiently, it’s beneficial to agree on the legal jurisdiction that will govern them and the best method of dispute resolution, such as mediation, arbitration, or litigation.
Why Are Influencer Agreements Important?
Using a contract, not only in this specific situation, but in any professional setting, allows both parties to align in terms of the outcome of the relationship, where the path is laid out for both parties to be happy. These agreements also provide a plan of action in case discrepancies or disputes may arise during the agreement.
However, staying compliant is another aspect of these agreements’ importance. The FTC (Federal Trade Commission) is the agency that oversees influencer advertisements. Its guidelines ensure complete transparency between influencers and their audience regarding advertised products.
Ensuring social media content is FTC-compliant when using an influencer agreement is critical. The best way to ensure this is to follow their advice. It’s not uncommon to hear in the news about brands that have been fined or penalized because they did not adhere to or follow FTC guidelines.
How to Manage Influencer Agreements?
Large and small companies partner with multiple micro and macro influencers when they launch extensive influencer campaigns. The details of these relations might affect the complexity of the contract that governs them, so it’s essential to ensure that these documents are managed well.
Filing cabinets, excel sheets, or any other old-fashioned storage and management method, might need to be revised to ensure these agreements are appropriately fulfilled. CLM software, like Zeal, allows organizations to manage, revise, and execute any contract effectively with the help of its centralized and easy-to-manage storage and contract analytics tools.
This approach allows brands and organizations to partner with multiple influencers while effortlessly managing the complexity of their contracts to ensure that the impact of these campaigns is the largest.
Final Thoughts
While influencer marketing regulations are becoming more established, a well-drafted contract that effectively manages the partnership remains essential. It protects the brand and the influencer by clearly defining expectations and avoiding misunderstandings. These agreements protect the influencer and the brand they partner with by aligning their interests and the work tasks requested. Considering the complexity of these relationships, it’s always good to consult with a legal professional when conducting large-scale campaigns to avoid risks or misunderstanding guidelines.
To learn more about Zeal and how it can help you manage and draft contracts quickly, click here.
