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What is an Influencer Agreement and Which Businesses Need One?

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What is an influencer agreement?

A social media influencer is a user on social media who has established credibility in a specific industry. These content creators have access to a large audience and can share information and content to persuade others through their authenticity and reach.

An influencer agreement is a contract between a brand or company and an influencer promoting the brand’s products or services on social media or other platforms. The agreement outlines the terms of the partnership, including the specific type of content the influencer will create, the compensation the influencer will receive, the length of the partnership, and any other requirements or restrictions.

The influencer agreement may also include provisions for matters pertaining to exclusivity, intellectual property rights, confidentiality, and termination of the partnership. These agreements are important for both the brand and the influencer in order to protect their various interests and to ensure that the partnership runs smoothly.

The benefits of having an influencer agreement in place

Businesses increasingly use influencers to endorse products and act as brand ambassadors on social media, at live events or via other media channels. If you are looking to do so, whether you are a PR agency engaging talent on behalf of a client, or the brand engaging talent directly yourself, there are certain key benefits that an influencer agreement can offer:

  1. Establishing compensation: The agreement can clearly outline the compensation structure, such as payment terms, rates, and any additional benefits, ensuring that both parties are clear on how much the influencer will be paid for their services;
  2. Setting boundaries: An influencer agreement can set boundaries for the relationship, such as exclusivity, non-compete clauses and confidentiality agreements;
  3. Confidentiality: The agreement can include provisions to protect confidential information that may be shared between the brand and the influencer during the collaboration;
  4. Professionalism: The agreement establishes a professional working relationship between the brand and the influencer, which can help to build trust and respect between the parties  and protect the brand from reputational damage;
  5. Dispute resolution: The agreement can include provisions for resolving disputes that may arise during the collaboration, including mediation or arbitration.

Overall, having an influencer agreement in place can help ensure that the partnership runs smoothly and that both the brand and the influencer have clear expectations and are protected throughout the partnership. We recommend, however, that you have your agreement drawn up by a specialist lawyer to ensure that it is legally sound.

How to create an effective influencer agreement

At Caveat we advise on all matters of media law, including regulatory compliance, intellectual property licensing and ownership, and draft terms for those who provide internet and mobile application services. Our team also drafts social media policies and influencer or brand ambassador agreements. We also advise on other media channels such as film and television or multimedia channels such as video game production. We recommend the following:

  1. You need to ensure that the talent, or their agent if appropriate, assigns IP rights to you so that you or your client can make use of the output of the services being provided. This includes copyright, talent image rights and moral rights. And that you have the right to use the materials for the required length of time and via the required media channels;

  2. You need to place the right obligations on the talent and ensure that the talent gives appropriate warranties and indemnities. The talent should not only be obliged to provide the services, but they should also be obliged to comply with approval requirements, and advertising and content standards. And to inform you of any issues likely to affect your use of their services. The talent should give warranties that include IP rights and not making statements or participating in activities that will prejudice the client or the brand. Indemnities may be appropriate;

  3. You should have the right to suspend or terminate the talent’s services for breach and for other specified reasons, including the talent’s incapacity, issues with the client’s production or sales of its endorsed product, or if the talent engages in activities that reflect unfavourably on the client or the endorsed product;

  4. The talent should comply with data protection legislation and consent to your collection and processing of their personal data in accordance with your data processing documents or provisions. You should also ensure that you limit your liability to the talent or their agent appropriately within the agreement.

For ease of use, it makes sense to structure the document so that a schedule itemises the details of the client, talent, brand, product, services, fees, approvals, media channels and other elements specific to each engagement, annexed to a set of terms and conditions.

The team at Caveat has extensive experience in the field of media law and related regulations and can assist with drawing up a watertight influencer agreement for your next venture.

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