Influencer marketing is becoming increasingly popular among marketers for business endorsements. It combines both old and new marketing strategies for driving better results. So instead of simply targeting for a larger reach, influencer marketing uses key leaders to engage relevant audiences. This has been shown to increase sales conversion.

Influencer marketing offers a great way to incorporate brand value with creative content to boost brand image. According to a recent report, 67\% of marketers are now endorsing their products through social media influencers.

However, to keep the marketers and influencers in alignment with goals of collaboration, a well-defined contract becomes essential. It helps both parties to clearly understand and execute campaigns for desired results.

What is a social media contract?

A social media contract is a written legal agreement that includes complete details of a marketing campaign. It is designed with the mutual consent of both the influencer and the brand.

It defines everything including campaign dates, number of social media posts, timings of posting them, campaign budget, template specifications (if needed), and required Federal Trade Commission (FTC) regulations. These details vary with each contract based on the influencer’s popularity, location, type of the campaign, etc. 

Social media influencer contracts are also used to ensure that the influencer is not in collaboration with any direct competitor of the brand during the same duration. It can also include content exclusivity and ownership clause in case the brand wants to repost it or use it in future campaigns.  

5 essential components of a social media influencer contract

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Irrespective of the scale or type of the campaign, abiding by legal obligations is a must. A duly signed contract helps the aid and protects the brand image from any fraudulent activity and discrepancy. 

In this article, we will be discussing important points to keep in mind while drafting a contract. Below are the 5 essential elements that should be included in any social media influencer contract –

1. Type of content

Setting clear objectives is most important for driving results from any campaign. Under this section, the brand can specify how they want their product to be perceived by the target audience. A set of rules can be laid down for this purpose to ensure that both parties are on the same page. It may include the following –

Number of posts

The brand can specify the number of photos, videos, stories, and even IGTV appearances (on Instagram) that are required for the campaign. They can also decide the frequency and timings for sharing the content. This will ensure a well-planned posting schedule and boost brand visibility online.

Format of posts

The brand can lay out a template or a format for its campaign content. This helps build an appealing online aesthetic. It also helps in maintaining consistency across all social media platforms and even works well in compliance with the brand image. 

Formatting of posts also makes it easy to keep track of all the online content. However, influencers should also be given the freedom to create and share content based on what works best for their followers. This often helps in obtaining maximum engagements.

Hashtags and brand mention

The brand can also specify if there are any hashtags required for a particular campaign. A set of guidelines can be put in place for influencers to follow whenever they are posting content online.

Hashtags like #ad or #sponsored are often used to comply with the FTC guidelines. However, unique hashtags can be used to differentiate the campaign and/or brand from others. These hashtags can be used to segregate the content of a particular campaign in database searches using specific keywords. Furthermore, brands can keep a tab on performance metrics for better analytics by using these hashtags. 

In addition, specific mentions on social media posts can also be made to drive traffic on the brand’s handle and increase website visits. 

2. Scope of the campaign

The scope of any marketing strategy underlines its success metrics. It helps define the deliverables of the campaign and the brand’s expectation of an outcome. The scope or purpose of the campaign may include the following –

Promote a product or service

A campaign can be designed for introducing a new product or service to the target audience. Subsequently, relevant micro- or macro-influencer can be approached for its promotion.

Influencers can post a review of the product on their handles where they convey the specifics of the product to the target audience. As 22\% of the youth makes purchase decisions based on influencer’s endorsements, such campaigns hold immense potential to boost sales. 

Increase brand visibility

Having the influencers share your brand’s content on their handles increases brand visibility among the target audience. Brands that show consistent appearances on the feed of consumers have a better chance of doing sales than others. 

As 70\% of the teens’ trust influencer’s advice, a campaign can be used to build trust in the brand value. This helps build a loyal community for the brand and promotes long-term associations.

Achieve larger reach

Influencer marketing campaigns can be designed to increase the brand’s reach in the market. But finding relevant influencers is essential for this purpose. Influencer marketing software and platforms can be used to determine influencer’s performance and engagement rates before signing them for the campaign. 

3. Deadlines

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Deadline-driven projects are believed to perform better in business. So, for any campaign to be successful, it is essential to define a timeline for the same.

Based on the peak response statistics, brands can assign tentative deadlines to all the posts/content planned for a campaign. This will help in establishing a consistent reach to the audience and will also boost brand performance in social media algorithms.

4. Payment

Brands can pay the influencers through monetary or product compensation based on the agreement. Monetary compensation refers to money transactions whereas product compensation involves the supply of products/services.

In the case of monetary compensation, the brands should specify the currency (such as dollars, euros, etc.) in the contract in order to avoid any future misunderstandings. And in the case of product compensation, the brand should state the product value in the contract to avoid confusion.

Based on the campaign requirement and mutual agreement between the brand and influencer, the following monetary compensation can be made –

Upfront fees

Either complete or 50\% of the agreed payment is made in advance based on the popularity of the influencer. The rest of the payment in the latter is made after the post is made.

Commission

The influencer is given a commission if the purchase is made through the post or by their referral.

Per-click payment

Payment is made if the website visit is cited through the link provided by the influencer.

Cost per engagement

Influencers are paid based on the engagement the post receives in terms of likes and comments. 

Under this segment, the brand should ensure that the contract is in compliance with the FTC guidelines. For example, influencers need to specify the content as sponsored while posting online in order to differentiate them from the unsponsored ones. However, these guidelines can vary in different countries. 

It is also important to note that the influencer owns the copyright of the content posted online for the brand unless agreed otherwise. So, if the brands want to repost the content on their social media handles or websites, they will need official permission from the influencer to do so. Therefore, it should be kept in mind while drafting the social media influencer contract to avoid conflicts.

How to draft a social media influencer contract?

Source: freepik

In order to draft a social media influencer contract, the following sections can be added in a sequential manner –

1. Date and location of the contract

This will include the date of implementation and location of the signed contract which is the address of the employer (brand) in most cases.

2. Introduction to the parties

This will include the name and address of the involved parties, i.e, the brand and the influencer.

3. The scope of collaboration

The purpose of the contract is mentioned in this section. Specifications like the name of the campaign and its objectives are included here.

4. Description

Details like type of content, number of posts, frequency of posts, required hashtags, brand mentions, and links to be included are included in this section.

5. Duration

The start and the end date of the contract are mentioned here. 

6. Campaign requirement

The list of equipment and required manpower is listed in this section.

7. Copyright declaration

This section specifies are the ownership rights to the content created and shared for the campaign. If the brand wants to repost the content shared by the influencer, they must specify it here to avoid future conflicts.

8. Payment

The mode of compensation for collaboration, the currency of payment, and its frequency should be mentioned here.

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9. FTC Guidelines

The brand should list the FTC guidelines in this section for the influencer to follow.

10. Confidentiality

The brand should mention confidentiality clauses for sensitive information in this section (if applicable).

11.  Regulations of the contract

The brand can specify the termination clauses in this section. A list of instances can be included here which can lead to contract termination.

12. Signatures

Both parties should sign every page of the contract to avoid any misunderstanding in the future. 

Although 93\% of the brands are using Instagram for their marketing campaigns, this template can be used for other platforms as well. However, before finalizing the contract get your document reviewed by a licensed attorney. The attorney will make sure that the contract is in compliance with the applicable state and federal laws which can save you from future disputes.

Conclusion

With the increasing popularity of influencer marketing, it has become easy for businesses to organize social media campaigns. It helps them extend their reach to the target audience and increase sales.

However, these remote associations can often lead to misunderstandings and conflicts. To avoid this, the social media influencer contract is an essential document to have. It is a legally binding agreement that defines all the specifications of the campaign, leaving no room for miscommunication.

Hence, special attention should be given to the management of these contracts. Drafting a social media influencer contract can be tricky. Although we have discussed the draft design and essential components that should be included in the contract, it is better to get in touch with the professionals for legal advice.

In case you are looking or any contract management software, visit SaaSworthy.

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