INFLUENCER CONTRACTS 

27th August 2021

Internet, Social media, For private clients

Influencer marketing is an attractive marketing option for brands that want to promote their products or services to the influencers’ audiences.

When investing in influencer marketing, companies lack the certainty of whether the campaign will be profitable. They are also unsure if the influencer will fulfil the requirements of the campaign. For influencers, agreements to promote brands are an important source of revenue and often the most important one. That is why both brands and influencers will find helpful a contract carefully detailing the mutual expectations.

This article offers tips on what contractual obligations to include in an influencer contract.

What is an influencer contract?

An influencer contract is a written legal agreement covering all the necessary information about a marketing campaign between an influencer and a brand. This contract will include the obligations of the influencer, the brand and any mediating agency. It will spell out details like the campaign’s duration, deliverables required from the influencer and how information will be shared between the influencer and the brand. Both parties can contribute to the exact terms included in the contract before an agreement is signed.

Commercial terms

These consist of exact terms of the content deliverables expected in the duration of the campaign. The dates, timing and frequency of posts, photos, videos or live appearances, for example, on IGTV.

The contract will also include the agreed compensation the influencer will receive for fulfilling their contractual obligations.

Measurement of success clauses

Clear performance objectives will help the influencer and the brand evaluate the success of the influencer marketing campaign. The brand may wish to increase traffic to their website, promote a new product or service or reach a new audience. It is useful that influencers clearly understand the brand’s objectives so they can meet the contractual requirements.

The contract may require the influencer to disclosure to the brand the relevant post analytics to monitor the impact of the influencer marketing campaign.

Content ownership

The contract will spell out whether the promotional material produced belong to the brand or the influencer, during and after the marketing campaign has come to an end. The brand may also request to reserve the right to approve promotional posts before they go live.

Obligations of adherence to consumer protection law

The contract will require that the influencer follows national advertising disclosure guidelines, using adequate visual marks on marketing content like #ad or #paidpartnership.

Non-disclosure agreements (NDAs)

NDAs are an important part of doing business. Such agreements are used to create a safe space to discuss aspects of a commercially sensitive nature. Typically, an influencer contract will likely include non-disclosure clauses. However, a separate NDA may also be used, particularly in the negotiation stage before entering the influencer contract. 

Termination clauses

Valid causes of termination of the contract will depend on the applicable regulations governing it. Some highlighted termination reasons may include:

  •   failure of the influencer to provide services included in the contractual agreement
  •   failure of the influencer to fully disclose their public persona and ethical track record
  •   failure of the influencer to adhere to the non-disclosure agreements by sharing sensitive information about the brand  
  •   failure of the brand to fulfil its compensation obligations towards the influencer

Conclusion

 Brands and influencers will benefit from legal contracts to govern their commercial relationships as influencer marketing becomes more widely used. A contract can ensure that both parties’ long-term goals and expectations are aligned, disclosing the information needed for a successful influencer marketing campaign.

© New Balkans Law Office 2021

The Bulgarian and dual-qualified lawyers of New Balkans Law Office are regulated by the respective Bar of their registration. New Balkans Law Office is a brand name of Legal Services EOOD, a company registered under Bulgarian law. Reg’d No. 202331677. Further details are available here.

© New Balkans Law Office 2021