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The Essentials of an Influencer Contract That You Shouldn't Leave Out

Yauhen Zaremba

September 5, 2022

Whether you are a social media manager, a business owner, or a start-up manager looking to boost brand awareness, capture a larger audience, and make more profits, you should really consider partnering up with a social media influencer. 

And with the unprecedented rise and popularity of micro-influencers, you can expect to be spoiled for choice when it comes to choosing the best people to team up with. One thing is for sure, though: whoever you work with, you can’t leave out a well-structured, comprehensive influencer contract.

There are several ways you can draft your contract, including by using a proposal branding template, but do you know what to include? Read our guide to find out more.

Why Work with an Influencer?

Before we jump into the core of our guide, let’s clarify why working with the right social media influencer can be the best choice you have ever made for your business. 

Image sourced from Oberlo.com

  1. Brand Awareness

Every company needs people to be aware of its existence. It is, after all, how the brand-customer relationship begins. Without brand awareness, there is no customer relationship, and without customer relationship, there are no sales and profits.

This is particularly true for small companies and start-ups that are trying to get seen in a crowd of bigger players. And this is where a social media influencer can come in handy. An influencer who creates content that is relevant to your brand and has thousands of followers (if not more) is a sure-fire way to put your products or services straight in front of the people who might need them. 

This, in turn, means that hundreds of thousands of people will instantly become aware that your brand exists and that their favorite influencer is speaking (positively) about it. The next step? They will be curious to check out your offering – and, likely, buy from you.

  1. Customer Reach

Whatever your target audience, a partnership with the right social media influencer can help you grow exponentially. As we just mentioned, influencers let you reach out to a large potential customer base at the touch of a button.

Each and every one of their followers, in fact, will have instant access to your brand’s products or services by merely following that specific influencer and watching their stories, reading their posts, or attending their live video chats. 

Influencers are thought to be trusted, unbiased sources of information and advice, so if an influencer who is active in your sector starts saying amazing things about your brand, their followers will be tempted to see what you are all about.

 Image sourced from influencermarketinghub.com

  1. Return on Investment

Traditional advertising can be incredibly expensive, and it might not always generate the results that you expected. With social media influencers, on the other hand, not only will you be able to save a lot of money on your actual marketing and advertising campaigns, but you will also see a much faster – and bigger – return on your initial investment. 

Studies have shown that social media influencers generate 11 times the ROI of banner ads and $5.20 in sales for every dollar you have spent. And these are just the sales that you can measure – imagine if you were to include the total sales!

Why, you might wonder, does this happen? Well, one of the main reasons that influencer marketing returns higher profits is because this type of marketing tends to ramp up the demand for a specific product or service. But there’s more.

When a social media influencer posts content – especially videos – showing how to use one of your products or explaining why your services helped them solve a specific issue they had, their followers will immediately find this very relatable. As a result, they will be tempted to check out your brand, browse your e-store, and order their first sample. 

If your product or service delivers the exceptional result they expected, this generates hype around your brand, continuing that cycle of high demand that your influencer had initially kicked off.

Influencer Contract: The Five Essential Elements to Include

Now that you know why and how partnering with the right social media influencer can help your brand thrive, you will need to find out how to create an influencer contract that ticks all the boxes. 

An influencer contract is simply a written marketing agreement or sponsorship agreement between your brand and your influencer, which establishes and officializes a series of aspects and is signed off by all parties involved. It may sound complex, but it’s a lot easier than you expect. Keep reading to discover the five essential elements that your social media influencer contract should always include.

 

Image sourced from influencermarketinghub.com

  1. Include Everyone’s Details

As with all work contracts, the first crucial element that you’ll need to include is the personal details of all the parties involved. These include their full names and contact details as well as the description of what that specific contract is for and what it will cover.

When drafting your contract, try to keep it as simple as possible. Use language that is clear and easy to understand and be transparent at all times.

  1. Specify the Contract Duration

Another crucial part of your influencer contract is its duration. Regardless of whether you have already verbally agreed on how long you and your influencer are going to collaborate, this must also be put into writing to make it official.

So, ensure that your influencer contract includes all the details about the duration of the working relationship between everyone involved. When it comes to duration, you might choose to collaborate with your influencer on a regular basis for a few years, or you might prefer to work with them on a one-off project, campaign, or launch.

Both can be equally effective choices, but ultimately it will all depend on your goals and needs in the short and long term.

 

Free to use image sourced from Unsplash

  1. Agree on Fees and Payment Terms – and Include Them All

As you might expect, your influencer contract will need to clarify and officialize the fees that you will be paying to your influencer, as well as any payment terms that you had both previously agreed on. These should be included in your contract’s terms and conditions section. 

How much, and how often, you choose to pay the influencer you are working with depends on many factors. For example, if you are working with a new influencer for the first time and are just testing the waters on a specific campaign, you can try and offer a slightly lower fee. After all, you might not get the expected results, so it makes perfect sense not to pay a huge sum upfront.

If, on the other hand, you have had a very positive experience with an influencer and would like to continue the relationship with them in the long term, you might need to secure their partnership by proposing a higher payment. 

The fee that you are paying your influencer also depends on how famous and followed they are. Even among the so-called micro-influencers – those social media creators who have between 10,000 and 50,000 followers – there are some who are incredibly popular, and others who are less known. 

So, keep all these things in mind when setting up your payment proposal, and remember to also specify how and how often you will be paying your influencer.

  1. Create a Content Briefing and Clarify Ownership Rights

Influencer briefs are another hugely important aspect to include in your influencer contract. These are also called content briefs or creative briefs, and they are aimed at describing the type of content that your influencer is going to create to support your brand’s success. 

Such content may be written, visual, or animated, but it always needs to be informative and compelling enough to resonate with your target audience and generate an uptick in sales and conversions. This is why creating a well-detailed brief is vital.

 

Free to use image sourced from Pexels

In the brief, you will also need to specify the goal of the content that your influencer will be creating for you. Similarly, you must remember to include a section that defines all the rules around content ownership.

Are you happy for the content created by your influencer to be owned by them, or do you want (or need) to maintain full ownership over it? If you choose the latter option, be sure that you clarify it in the contract and that your influencer is aware of it and happy to go ahead with it.

In parallel, you will also need to request your influencer’s permission to use their name and potentially other assets such as their photo and logo, in your digital publications – including your website, blog, and social media pages. 

  1. Add a Clause on Termination

Even the best partnerships can sometimes come to an abrupt or unexpected ending. It can be down to several factors, including poor returns, bad decisions (made by either party), or just a sudden change of plans.

Whatever the circumstances, it’s important that your influencer contract includes a termination clause. This should include a so-called morality clause and a cancellation clause to ensure that your brand is safeguarded and that its reputation or sensitive information is not put at risk.

Create a Foolproof Influencer Contract, Every Time

Anyone who works in the marketing world – from social media managers to email marketers, marketing executives, and more – should tap into the potential of social media influencer marketing. By partnering with the right influencer, brands can supercharge their ROI, enhance their awareness, and reach out to a much broader customer base. 

To ensure that your relationship with your chosen influencer is as positive and profitable as possible, though, you must prepare an influencer contract that includes all the aspects described in our guide. The essentials you must never leave out include personal details, creative brief, ownership rights, termination rights, and fees and payment terms. Are you ready to nail your next influencer partnership with a foolproof contract? 

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