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Influencer Marketing Contract

Did you know that word-of-mouth generates $6 trillion in annual global spending? It’s an incredible figure and an indication as to why influencer marketing has become such a successful brand strategy. 

Whether you sell skincare products, have a clothing label, or you’re dropshipping quirky gifts for fly-fishing enthusiasts, you can see a lot of success with influencer marketing as an ecommerce brand – especially as new privacy rules cause Facebook ads to decline in profitability.

Influencer marketing not only drives brand awareness, but also helps companies engage with prospective customers on a deeper level, drive high-intent traffic, and generate sales. But aside from attribution and tracking to inform the success of your influencer marketing campaign, there’s another challenge at hand: contracts.

In this article, we’re doing a deep dive on what an influencer contract is, what to include in the agreement, and a template that you can use for your next campaign.

What is an influencer contract?

An influencer contract is a legal document that covers all the necessary terms and agreements between the influencer and your brand. 

Your influencer contract will include essential information that both parties need to agree on, such as the dates of the campaign, how the influencer needs to share brand information on social media, and any hashtags they should use. 

It’s a good idea to keep track of Federal Trade Commission (FTC) requirements when agreeing on contract terms, which regulate influencer marketing procedures in terms of advertising. These rules can vary and change over time, and depending on the country where the campaign is being launched, the influencer might need to follow different steps. As an example, influencers need to disclose if they are being paid to promote your business by tagging it as a ‘paid partnership’ or including ‘ad’ or ‘sponsored’ in the caption.

4 key elements to include in an influencer agreement

No matter the size of the or how established your brand may be, there should be an agreement signed by both parties. Having a verbal agreement over email means there could be misinterpretations on both sides, which is what you want to avoid.

Here are the necessary elements that you should include in your next influencer contract – orr you can use the template we’ve created below!

1. Content to be created

This is one of the main components of every contract. As a brand, you need to set up the objectives and the type of campaign content that you want to see on social media. 

Although you want to make expectations clear, you don’t need to be overly prescriptive; influencers have their own unique style of content creation that needs to shine through in order for their audience to appreciate and connect with it. You can always tell when a brand has been overly prescriptive with their campaign on an influencer partnership.

In this section you should include:

Type of content

The type of content refers to the number of photos, reels, or stories that you are paying for.  It’s important to choose a format that fits naturally within the influencer’s current content, but also suits the nature of your brand’s campaign. 

As well as the type of content, you need to determine how many pieces of content will be shared.

Times to post

When is the best time to share this content? Usually, influencers have internal insights that show when engagement is at its peak. On Instagram, for example, business accounts can see what times of the day their followers are most active.

If you aren’t sure, ask the influencer about previous campaigns and the timing for content sharing. 

Aesthetics

You want to ensure that your brand’s values are projected authentically to the world, so make sure the influencer’s content follows a similar aesthetic to your own in case you want to reshare it. This applies to filters, styling, and color schemes.

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

As part of the communication process with the influencer, you need to address the objectives you plan to reach by the end of the campaign. In an influencer marketing campaign, the most common objectives for a brand are:

  • Brand awareness
  • Website traffic 
  • Sign-ups
  • Product sales

You may have an affiliate program in place that can incentivize and pay influencers for their post performance. This can be directly tied to sales or sign-ups and mentioned at this point of the contract.

3. Influencer compensation

The compensation structure needs to be articulated clearly and agreed upon in black and white. 

Will you be offering monetary compensation, sending products, or both? 

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

Time and frequency

This part of the contract outlines when you will be paying or sending products to the influencer as compensation. If they are reviewing your product or service as part of the content agreement, then you will need to outline the timeline for when you expect the post to go live. 

You might offer to pay 50% upfront and 50% once the content is posted. If you are doing performance-related affiliate payments, let the influencer know when they can expect their first payment and ongoing payments thereafter.

Currency 

If the influencer is based in another country, it’s important to outline which currency will be used to pay them. Remember that many countries have “dollars” as a currency, so specify if it’s USD, AUD, CAD, etc.

As a brand, it can be difficult to know how much an influencer should get paid. You can either ask the influencer for their media kit (where this information is usually available) or use an influencer marketing platform to analyze this metric beforehand. That way, brands can have an idea of how much budget should be allocated to the campaign.

4. The really legal part

In the US, the FTC has released several requirements that influencers need to follow when they publish sponsored content. However, these guidelines differ by country: for example, you may need to consider GDPR guidelines in Europe and the UK as well. 

As of 2021, FTC guidelines state that paid endorsements need to be clearly declared by the influencer. This means that the influencer needs to include #ad or #sponsored in the caption of the content. 

If you have a legal team, make sure the contract is reviewed by them. Once the contract is completed and verified, 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 communicating with the influencer, as some points in the agreement can change. Sometimes, influencers might be working with other brands already and the start date might be delayed. 

To get you started, we have created an Influencer Marketing Contract Template that you can customize for your brand and send for signature using Signeasy! Get your free trial today and start collecting eSignatures within minutes!

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