7 Things to Include in Your Influencer Marketing Agreement

Marketing has expanded beyond traditional media and has grown to include several unconventional channels. Influencer marketing is one of these that has gained traction in the last couple of years with 2017 being dubbed as the Year of the Influencers by industry experts.

 

Influencer marketing involves brands and content creators collaborating to create marketing content. These influencers help brands connect with new audiences, advertise their business, and generate traffic for their digital sites.

While influencer marketing seems to be a promising channel, risks arise when an influencer agreement does not exist, or when it is not carefully planned and crafted.  Here are a few tips from the experts that will help you create a winning influencer marketing agreement.

1. What is your Goal?

The first step to crafting an influencer marketing agreement is knowing your marketing goals and objectives. Influencers are often one aspect of a multi-facetted marketing strategy and therefore it is important to the know the goal you are aiming to achieve. Here are a few goals for thought – is it to increase brand awareness, lead generation, conversion, or aiding brand recall?

A goal will help determine what success looks like for your influencer campaign through KPIs. This will allow your brand and influence will be aligned so as to what to achieve.

2. Scope of Work

Like any business contract, an influencer agreement needs to include specifics of the services which content creators will provide. These can include all details about, but not limited to:

  • Is this a temporary collaboration? A one-off content piece, a campaign, or a recurring association with the brand. In this instance, specifying the start and end dates is important.
  • An explanation of the content which will be produced for you, including how many content pieces are required.
  • Specifics of the pieces required in terms of format, length, etc. These can be very detailed or can be left to the creators’ discretion. Any information that is requested to be included in the content should be mentioned.
  • The digital platforms you will be posting on, times, and frequency of posts.
  • Identify what behaviour, language, or items are not appropriate for use. This is critical as backlash on any videos can affect the brand image and rapport as well as in the case of Logan Paul.

3. Paid Endorsement Closure

An influencer is legally required to indicate that a content piece is a paid/sponsored post or endorsement. This is mandated by the Australian Association of National Advertisers to ensure that advertisements are differentiated and distinguishable.

The Australian Consumer Law (ACL) also prohibits the use of false and deceptive advertising. The disclosure of paid posts ensures that the audience is aware that the content is sponsored and hence an ad. This can be in the form of hashtags, such as #ad, #sponsored, #paidpartenrship, or creators can specifically mention ‘paid partnership’ in their captions.

4. Payment and Compensation Terms

Your marketing agreement must contain clauses regarding the fees and payment procedures. Details should include the description of the fees and type of payment, time of payment as well as the mutually accepted methods of payment. Identify whether the payment will be a one-time transfer or periodic. In case of a longer-term collaboration, choose whether to pay a flat rate or one lump sum amount.

It is imperative that you discuss the remuneration beforehand and the details to avoid any confusion or conflicts later.

4. Payment and Compensation Terms

Your marketing agreement must contain clauses regarding the fees and payment procedures. Details should include the description of the fees and type of payment, time of payment as well as the mutually accepted methods of payment. Identify whether the payment will be a one-time transfer or periodic. In case of a longer-term collaboration, choose whether to pay a flat rate or one lump sum amount.

It is imperative that you discuss the remuneration beforehand and the details to avoid any confusion or conflicts later.

5. Non-Disclosure Clause

When working with an influencer, your company is likely to be disclosing confidential information to creators. Adding a non-disclosure clause or agreement can benefit you by ensuring that sensitive information is not disclosed to anyone outside the agreement.

The agreement should indicate sensitive information which cannot be shared by the creators without the company’s consent. All launch dates and campaigns should be aligned between the company and all influencers to prevent any information leaks before the desired time.

6. Exclusivity Terms

Content creators work with multiple brands and products. However, as a brand, is it essential for you to define whether the creator can take on multiple brands at a certain time.

Depending on the length and duration of your collaboration and agreement, you can determine the time duration in which the creator will be exclusively working with you. This ensures the development of a consistent brand image as well as strengthens the association of the influencer and the brand. 

7. Intellectual Property and Liability

With two parties coming together to create content, it is important to identify intellectual property rights and ownership. Who owns the collaborative piece and can the ownership be transferred?

By default, the content creator holds ownership rights to the content piece. However, ownership can change through a licence or transfer of ownership.

  • Transfer of Ownership

An influencer can choose to transfer rights to the brand making them the legal owner of the media. If the company wishes the creators to use the posts, they can grant them a licence to share the posts, upload, or play with the content for the agreed-upon purposes.

  • Licence

If the influencers do not transfer rights, brands can obtain a licence to use their content. The licence clause in the agreement should detail whether influencers can dictate when and how you can use their content. It should also specify whether the brand has exclusive rights to the content or not. Be very specific about how you intend on using the content when creating an agreement so no conflicts arise later.

KEY TAKEAWAYS

  • Influencer marketing agreements need to be specific and detailed business contracts between brands and influencers.
  • Identify the objectives you want to achieve with the agreement, and specify them along with KPIs.
  • Include the agreed-upon start and end dates, payment terms, and methodologies, content piece specifics (format, length, information to include).
  • Add non-compete and non-disclosure clauses, as well as exclusivity clauses to define the relationship with the influencer.
  • Include details about the ownership of content and any licensing details necessary if the brand has ownership or vice versa.

Conclusion

A well-crafted and detailed influencer marketing agreement can set you up for a successful collaboration with content creators. However, an ambiguous agreement can set you up for inevitable conflicts, loss of brand reputation, and finances.

 

Hiring or consulting a legal expert when writing an influencer agreement can prove to be a beneficial decision when planning to launch an influencer marketing campaign. Covering your legal responsibilities through a detailed contract can save you from potential financial losses or legal disputes.

 

If you are in the process of writing an agreement, reach out to the skilled team of business lawyers at Lazarus Legal with your requirements. Our experts can help you draft the right agreement for your business and help with all the legal aspects of influencer negotiations.

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Mark Lazarus

Mark Lazarus, the visionary behind the business and the fresh blood of the Lazarus Legal team, Mark (or Laz as he is often known) owes much of his success to his past experiences. And he’s made it his personal goal to bring that wisdom and formula to the firm.

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7 Things to Include in Your Influencer Marketing Agreement