What to Include in an Influencer Contract

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What to Include in an Influencer Contract

A Brief Introduction About the Influencer Contract

An influencer contract is an agreement between a particular brand and an influencer or between a marketer and an influencer. An influencer is a person with a considerable number of followers on social media or other mediums, and who has a following of a particular niche. This ensures that the brand reaches a huge number of people which in turn increases the popularity and revenues of such a brand. The process of hiring an influencer for such endorsements is known as “influencer marketing.” Brands choose this process as it ensures that the products of the brands have an online presence along with an offline one. The influencer and the brand enter into an agreement through which they define the work and the type of promotions that are to be done by the influencer and how he/she will be paid for the same. There are multiple influencers in the market today, and hence the brand can choose one based on who suits their brand image and who has a better social media presence.

Who Takes the Influencer Contract – People Involved

This agreement is entered into between the brand or the marketer who wishes to hire the influencer and the influencer who will provide certain promotional services to the brand.

Purpose of the Influencer Contract – Why Do You Need It?

The purpose of such an agreement is to lay down the conditions under which all the promotional activities will be carried out by the influencer. This is done so that the scope of the influencer relationship is well defined and both parties are clear about their responsibilities under the agreement. The agreement will provide a layout of the entire transaction. All the terms that are essential for carrying out the brand campaign’s success will be laid down in the agreement. This is done to avoid any dispute between the parties concerning their obligations under the contract.

The agreement will define the necessity of both parties while ensuring that the brand campaign is designed to align with the image of the influencer and the image and reputation of the brand.

Contents of the Influencer Contract – Inclusions

The agreement may be created for one particular campaign, or it may also be a long-term relationship.

The terms and conditions of an Influencer Contract will depend on the situation for which the influencer has been hired. However, there are certain clauses that will be a part of every agreement to ensure that both parties have reached a consensus. The agreement will mention the names of both parties who are entering into the contract and the date on which the agreement is being created. There should be a small clause describing the reason for which this agreement is being entered into. There should be a detailed clause on what duties the influencer has to fulfill as part of this contract. This may include social media posts, videos, or attending a particular event. The deadlines by which the influencer has to deliver all the work also have to be stated. The period for which the contract will be active should be mentioned.

The payment clause should define the amount and type of payment. This may include a specific fee for each campaign, performance-based pay and may also add free products.

The agreement should define who will have ownership of all the work that is created as part of the brand campaign. It should also mention what property is being licensed to the other party. This may include copyright and trademarks attached to the brand and the influencer’s account name, social media handle, and publicity rights.

There will also be clauses stating what the influencer is not allowed to do. This will include using the names of any competitors of the brand or using any abusive language. An exclusivity clause is also included in such contracts. This clause ensures that the influencer does not work with any competitors of the brand during the period of this contract.

How to Draft the Influencer Contract

Below are the steps to ensure while drafting a simple influencer agreement:

  • The parties will first negotiate the various details of how the influencer campaign will be run. This includes detailing the duties of the influencer and how they will be carried out. How the influencer will be paid must also be mutually decided by the parties.
  • All the terms and conditions that have been agreed to will be laid out in the agreement. This is done to clarify the intention of the parties and to avoid any conflicts in the future.
  • Once the draft of the agreement is ready, both parties must go through all the clauses and ensure that their interests have been addressed under it. This is important as the parties must agree only after they have confirmed its contents.
  • Both parties must then sign the agreement. This will indicate their agreement to be bound by the terms of the agreement.

Negotiation Strategy

  • The negotiation process in an influencer campaign will include the scope of the promotions to be done by the influencer. The brand will try to ensure that they can reach out to as many influencer’s followers as possible.
  • The influencer will negotiate in such a manner so as to ensure that he/she is adequately compensated for the work done and that the brand campaign aligns with the public image of the influencer.

Benefits and Drawbacks of the Influencer Contract

The following are the benefits and drawbacks of having an influencer contract:

  • By entering into this agreement, the brand gets access to a huge number of potential customers by hiring an influencer with considerable social media following.
  • By working with well-known brands, the influencer can also increase his/her reach in the market. This ensures that their popularity increases which in turn increases the amount of work coming their way.
  • The benefit of creating a written agreement is that the duties of both parties are defined and there is no scope for any confusion between the parties.
  • The agreement will lay down what the influencer is not allowed to do. This includes any activity that may damage the reputation of the brand. When such terms are written down, it is easy to prove that a breach of contract has taken place.
  • In case of a breach by one party, the other party has certain remedies available under the agreement to protect their rights.

Consequences of Violation of the Influencer Contract?

There will be a clause in the agreement which lays down the remedies that will be available if one of the parties breaches the terms of the contract. Generally, the breaching party is allowed thirty days to cure the breach. If this is not done, the non-breaching will have a right to terminate the agreement and claim damages.

Examples of violation of an influencer agreement may be the influencer failing to post the required number of posts or videos on their social media accounts or not carrying out the tasks in the manner that is required by the brand. There may also be cases of the brand not making payments at the scheduled time to the influencer. In such situations, a party can initiate a suit against the opposite party for breach of contract. The non-breaching party will have the right to claim damages for the losses suffered by them. If monetary damages are not deemed to be sufficient, the court may also pass an order for specific performance of the contract. Accordingly, the party will have to perform his / her end of the contract.

In today’s time, brands choose to conduct extensive digital campaigns as this gives them a chance to reach out to their target audience in large numbers. For this purpose, they hire influencers who may be bloggers or celebrities. These influencers are responsible for endorsing the products of such brands and encouraging their audience to purchase or use such products. Brands can choose such influencers based on who their target audience is. When such a relationship is created between a brand and an influencer, it is imperative to create an influencer contract to lay down the terms of how both parties will carry out their tasks. Such an agreement will ensure that the brand campaign will be carried out in a manner that is satisfying to both parties.