INTRO
As the influencer marketing industry continues to grow, it's more important than ever for companies to have clear, written contracts in place when working with influencers.
Not only does a contract protect both parties from misunderstandings and disputes, but it also ensures that all legal and ethical guidelines are met
In this article, we will provide a comprehensive influencer contract template that covers all the key terms and considerations that companies need to take into account when working with influencers.
From outlining campaign details and compensation to addressing exclusivity and disclosure, this template will serve as a valuable resource for any company looking to navigate the ever-evolving world of influencer marketing.
KEY TERMS
Before diving into the specifics of the contract template, it's important to define some key terms that will be used throughout the document. These include:
- Compensation: This refers to the payment or other form of compensation that the influencer will receive for their participation in the campaign. This can include a flat fee, a commission, or a combination of both.
- Exclusivity: This refers to whether the influencer is required to promote only the company's products or services during the campaign, or if they are prohibited from promoting competing products or services.
- Disclosure: Influencers are legally required to disclose when a post is sponsored or endorsed. This refers to the influencer's obligations to disclose any sponsored content, including guidelines for tagging and hashtags.
- Deliverables: This refers to the specific actions or content that the influencer is expected to produce as part of the campaign.
- Termination: This refers to the conditions under which the contract can be terminated by either party.
It's essential that both parties fully understand and agree on these terms before signing the contract to avoid any misunderstandings or disputes in the future.
If you are looking to jump into the world of influencer marketing connect with Social Cat for a complimentary trial or book a demo and learn how to work with micro-influencers to boost your brand.
CONTRACT SECTIONS
The contract template should be divided into several sections that cover different aspects of the influencer relationship, such as:
This section should outline the specific details of the campaign, including the products or services being promoted, the length of the campaign, and any specific deliverables required from the influencer. It's important to be as specific as possible in this section to avoid any confusion or misunderstandings later on.
- Campaign Name: The name or title of the campaign
- Campaign Description: A brief description of the campaign including the overall objective, target audience, and key messaging.
- Products/Services: The specific products or services that the influencer will be promoting during the campaign.
- Campaign Dates: The start and end date of the campaign.
- Deliverables: The specific actions or content that the influencer is expected to produce as part of the campaign. This can include number of posts, videos, stories, live streams, etc.
- Platforms: The social media platforms where the content will be shared.
- Performance Metrics: Specific metrics that will be used to measure the success of the campaign.
It's important to be as detailed as possible in this section to avoid any confusion or misunderstandings later on. This section should be clearly understood by both parties and should be as specific as possible to ensure that the campaign runs smoothly.
1. Compensation:
This section should specify how the influencer will be compensated, including the amount, payment schedule, and any bonuses or incentives. It's also important to include information on how expenses, such as travel or equipment costs, will be covered.
- Compensation Amount: The total amount of compensation that the influencer will receive for their participation in the campaign. This can include a flat fee, a commission, or a combination of both.
- Payment Schedule: The schedule for when the influencer will receive payments, such as on a specific date or upon completion of specific deliverables.
- Bonuses or Incentives: Any additional compensation that the influencer may be eligible for, such as bonuses for reaching certain performance metrics or incentives for driving a certain amount of sales.
- Expenses: Information on how expenses, such as travel or equipment costs, will be covered. This can include a budget for the influencer to use or a reimbursement process.
It's important to be transparent and clear about the compensation terms in the contract to avoid any misunderstandings or disputes later on.
2. Exclusivity:
If the influencer is required to promote only your products or services during the campaign, or if they are prohibited from promoting competing products or services, this should be clearly outlined in this section.
- Exclusivity Clause: This section should specify whether the influencer is required to promote only your products or services during the campaign, or if they are prohibited from promoting competing products or services.
- Restriction Period: If an exclusivity clause is included, it should also specify the duration of the restriction.
- Limitations: If there are any specific limitations to the exclusivity clause, such as the influencer being able to promote non-competing products or services, they should be clearly outlined in this section.’
It's important to keep in mind that some influencers may have existing agreements with other brands, and may not be able to agree to an exclusivity clause. In that case, it's important to be flexible and try to come to an agreement that works for both parties.
3. Disclosure:
This section should include guidelines for tagging and hashtags, as well as any other guidelines related to sponsored content. It should also specify what happens if the influencer fails to disclose sponsored content as required by law.
- Legal Obligation: This section should remind both parties of the legal obligation for influencers to disclose sponsored content in accordance with the Federal Trade Commission (FTC) guidelines and any other applicable laws or regulations.
- Guidelines for Tagging and Hashtags: This section should specify any guidelines for tagging and hashtags that the influencer must follow when posting sponsored content. This can include specific hashtags that must be used, or guidelines for how the influencer should indicate that a post is sponsored.
- Consequences: This section should specify what happens if the influencer fails to disclose sponsored content as required by law. This can include termination of the contract, fines, or other penalties.
It's important for both parties to understand the legal requirements and guidelines for disclosure in order to ensure that all sponsored content is properly disclosed and in compliance with the law.
4. Termination:
This section should outline the conditions under which the contract can be terminated by either party. This can include a notice period, as well as any penalties for early termination.
- Termination by Either Party: This section should outline the conditions under which either party can terminate the contract. This can include a notice period or specific events that would trigger termination, such as a breach of contract.
- Early Termination: This section should specify any penalties or fees that may be incurred if the contract is terminated early.
- Effect of Termination: This section should specify what happens after the contract is terminated, such as if the influencer is still required to remove any sponsored content or if any further compensation is owed.
It's important to have a clear termination clause in the contract to ensure that both parties understand the process and any potential consequences of terminating the agreement.
5. Confidentiality:
This section should specify what information the influencer is not allowed to share with the public or other third parties.
- Definition of Confidential Information: This section should define what is considered confidential information, such as trade secrets, financial information, or other proprietary information.
- Non-Disclosure: This section should specify that the influencer is prohibited from disclosing any confidential information to the public or other third parties.
- Duration of Confidentiality: This section should specify the length of time that the confidentiality obligation will remain in effect, whether it be for a specific period of time or indefinitely.
- Exceptions: This section should specify any exceptions to the confidentiality obligation, such as information that is already in the public domain or that is required to be disclosed by law.
It's important to have a confidentiality clause in the contract to protect any sensitive information that the company may not want to be shared with the public or other third parties.
If you are looking to jump into the world of influencer marketing connect with Social Cat for a complimentary trial or book a demo and learn how to work with micro-influencers to boost your brand.
LEGAL CONSIDERATIONS
The "Legal Considerations" section of the contract template should include a disclaimer that the contract is not a substitute for legal advice and that the influencer should consult with an attorney before signing. This is important for several reasons:
- The contract template provided is a general guide and may not cover all the specific legal requirements or considerations for your jurisdiction or industry.
- An attorney can review the contract and advise the influencer on any potential legal issues or risks.
- An attorney can help the influencer understand the terms and conditions of the contract and ensure that they are fully informed before signing.
This disclaimer should be prominently placed in the contract template, and it is also a good practice to include a sentence reminding both parties to seek legal advice if they have any doubts.
CONCLUSION
A contract not only protects both parties from misunderstandings and disputes but also ensures that all legal and ethical guidelines are met.
This article reminds the readers of the key terms and considerations that companies need to take into account when working with influencers, including campaign details, compensation, exclusivity, disclosure, termination, confidentiality and legal considerations.
It should also encourage readers to use the provided template as a starting point for their own contracts, but also remind them that this is not a substitute for legal advice, and that they should consult with an attorney before signing any contract.
The article should end by encouraging the readers to take the time to carefully review the contract, to ensure that it meets their specific needs and to make sure that both parties are on the same page.
Below you can see a contract template:
