Influencer marketing has been a hot topic for a while now. The number of brands using influencers to promote their products or services has increased significantly in the past few years. And with good reason, too – research has shown that consumers are more likely to buy from an influencer they follow on social media than from a brand’s own social media account.
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With that said, if your company plans on working with an influencer, you have to make sure that you don’t get carried away by the excitement. There still needs to be a formality to the entire affair, and that’s where an influencer marketing agreement will come in.
What is an Influencer Marketing Agreement?
An influencer marketing agreement is a contract signed by both the company and the influencer. It’s an agreement between two parties to work together on a project. You can use several tools such as NDA software to optimize the creations of your influencer marketing agreement or contracts and make it more efficient. This contract can also help protect both parties, ensuring that all expectations are met and everyone’s interests are protected.
The importance of an influencer marketing agreement is to define what you want from your influencer and what they want from you. The contract will include details about how many posts will be created, how often, and for how long. It also consists of the compensation for the posts and any other promotional materials used in conjunction with the campaign.
What is creator management?
Creator management is any task or process that oversees brand-creator relationships. Creator managers streamline the prospecting and recruiting process along with managing content, payment, workflow, and tracking performance. Creator management tools are a smart investment for brands that have multiple or many creator/influencer partnerships.
Creators can also opt to monetize their content on their own. This can be done easily with the help of creator tool suites such as Beacons. Beacons allows creators to run their business and collect payments online. The tools that Beacons offers allow creators to grow their audiences, maximize opportunities to monetize content through brand deals, and create invoices. This way creators have full autonomy of the way they get paid for their content. Tools like Beacons are extremely useful for people trying to get started in the creator industry.
Influencer Marketing Agreements Elements:
If you plan on working with an influencer, you have to make an influencer marketing agreement, and it should have several elements in place.
1. Clear deadlines
An influencer marketing agreement will have a deadline for the campaign period, which both parties should decide beforehand. This part ensures no confusion about how long the campaign should last and what should happen after it ends.
A deadline is crucial for influencer marketing agreements because it helps you stay on track with your campaigns.
That can help the influencer you’re working with find out when the deadline is for their part of your campaign.
2. Scope of work and specific deliverables
You should clearly define the scope of work and specific deliverables in the influencer marketing agreement to avoid any disputes in the future. The range of work should be a detailed list of what you expect from the influencer and what they can expect from you. Specific deliverables should list what the influencer will provide you in return for your payment, such as posts, pictures, videos, etc.
It should include the following:
- The content that the influencer will create
- The audience that will see this content
- The duration of the campaign
- The number of posts or tweets per week
3. Content usage rights
The content usage rights in an influencer marketing agreement are essential because they define who owns the content created by the influencer.
It is crucial to identify content usage rights in an influencer marketing agreement. For example, you may want your influencer to use your content for their own social media posts or make it public on their blog.
The use of copyrighted material without permission is illegal and can lead to copyright infringement. Therefore, when drafting an influencer marketing agreement, it is vital that you identify and clearly state what types of usage rights you are granting in the contract.
4. Payment information
The agreement should include payment information, payment details, and other terms that are relevant to the deal.
It should include all the details about payment terms, payment frequency, payment dates, and what currency the payment will be. That is one of the most critical parts of the agreement, so don’t skip this.
5. Exclusivity clause
An exclusivity clause ensures that the influencer does not work for other brands in addition to this one. It can be used in different ways, for example, restricting an influencer from posting any sponsored content on social media platforms like Facebook, Instagram, and Twitter.
This type of clause prevents an influencer from working with other brands, specifically competitors, on social media networks for a specific period. Exclusivity can be anything from three months to five years or more.
Given the stringency of this clause, this usually means you’ll have to spend a lot of money for the compliance of this clause.
6. FTC disclosure guidelines
The Federal Trade Commission (FTC) has guidelines for influencer marketing agreements. These guidelines are in the form of a disclosure agreement signed by both the company and the influencer. The FTC mandates that this disclosure agreement be made available to consumers before purchasing a product or service from the company.
The FTC disclosure agreement states that an influencer should disclose any material connection with a brand, product, or service when they post about it on social media. They also say that an influencer should reveal if they have been given free products in exchange for reviews.
7. Edit approval
Edit approval ensures that the marketing campaign’s content goes through thorough checking before publishing. Edit approval clause almost guarantees that the content is not false or misleading.
Edit approval clause helps protect both sides of the agreement. It ensures that the influencer posts accurate information, and it also provides that the company does not post anything false about their product, which would affect their brand image.
8. Confidentiality terms
Confidentiality is a critical component of an influencer marketing agreement. It ensures that the content generated by the influencer is not shared with anyone apart from the brand with whom they have a contract.
These confidentiality terms will dictate what each party can and cannot do with the information.
9. Reasons for termination
Termination is a standard clause in most types of contracts. It is an integral part of the contract because it defines what happens when one party wants to terminate the agreement. In influencer marketing agreements, termination can occur for different reasons.
In these agreements, termination can happen for many reasons, but the causes may differ from both sides.
In Summary
Now that you know more about influencer marketing agreements and the key elements, you should be better equipped when dealing with influencers to market your services or products. Creating an influencer agreement contract ensures that both parties are on good terms and protected while working together.