Businesses on the other hand want to be associated with the most popular social influencers in order to gain visibility in the digital space. Therefore, they agree to allow an influencer to promote their product on their platform and compensate the influencer based on the number of clicks or sales that result from this promotion.
It may sound simple enough, but companies often underestimate the importance of the influencer marketing agreement. The key reason why this agreement is so important is because it ensures that a business receives compensation for allowing the product or service to be promoted. In essence, if you are not paid for mentioning your brand on your own platform, you are not being compensated for mentioning it on someone else’s platform. This means that it is imperative that you carefully review an influencer agreement before you sign on the dotted line. This article provides some advice on how to draft an influencer agreement, as well as other legal aspects related to using social media for marketing campaigns.
An Influencer Marketing Agreement
As mentioned above, there are multiple legal factors to consider when putting together an influencer marketing agreement. When it comes to protecting intellectual property, there are five general categories that you should be aware of. First, the agreement should include a disclaimer that states that no express or implied conditions can bind the business. The fact is that no economic harm can arise from permitting marketing by a third party, as is the case with traditional contracts. For instance, if a retailer does not allow a manufacturer to advertise on its platform, the retailer is not legally constrained to pay the manufacturer in the form of compensation.
Another important factor to consider is that a contract should never attempt to create a binding agreement between the business and its influencers. The agreement should never contain an expiry date, or a clause stating that if the contract is terminated, the influencer marketing agreement will automatically expire. Instead, a business should always seek to include language in its contract that clearly defines the relationship between the business and its influencers. This ensures that the business is not in any contractual violation of the rights of the influencer under the influencer marketing agreement.
A good influencer marketing agreement will also ensure that you receive compensation for the marketing efforts that you have invested in for your brand. The contract should identify the amount of money that you have authorised to spend, as well as specify what you will receive in exchange for those funds. The contract must also take into consideration any fees that you may have paid to the influencer. Generally speaking, those fees should be split between the business and the influencer. In some circumstances, the business may even be entitled to an ex-gratia payment from the influencer, for example if the influencer delivers a specialised product or service that enhances the functionality of the business’s product.
An important consideration for your influencer marketing agreement is to ensure that it focuses on the targeted consumer profile of your business. The agreement should define who your target audience is, as well as ensure that you provide them with the specific deliverables that they are looking for. For example, instead of simply providing a list of products and services that you have available, the agreement should focus on articulating how your product or service will enhance the experience of your customers, and how it will help to draw new users to your business.
By doing this, you will ensure that your influencers become more engaged with your company, and enjoy a greater degree of loyalty when they engage with your products and services. In terms of the content of the campaign, your influencer marketing agreement should define exactly which promotional materials you will use with each influencer. It is likely that these will include banners, social media buttons and links to your website or online store. Your agreement should also focus on the frequency of the promotions, and whether any content will be considered confidential.
This is especially important if the promotions you are planning to run through these platforms are intended to appeal to or inform a particular group of consumers. If the advertising codes of the regulatory bodies of the different countries where you intend to market your brand are different, your agreement should ensure that you do not breach any regulations by carrying out the promotions.
Because social platforms offer unique opportunities to reach out to a broader audience, you should also be cognizant of the fact that your competitors are doing exactly the same thing. Therefore, you should consider carefully whether it would be appropriate for you to launch promotional campaigns through the same platform as your competitors. As a general rule, a good influencer marketing agreement should prevent the use of a social network in the promotion of your brand by either party, except where such use would constitute an infringement of the rights of the other party. Where the rights of the brand owner outweigh the rights of the user, the agreement should specify that no content or material from the platform or other sites should be used for the purpose of commercial advantage or otherwise. If the commercial advantage is not strong enough, you should refer to the applicable regulations or search engine guidelines for guidance on how to make such determinations.