Social Media Marketing Agreement

Influencer marketing is a social media marketing strategy involving the employment of influencers to endorse or mention a brand or product to their follower base.

Are you an influencer promoting a brand on social media? Or looking to promote your business through an influencer? If so, it is important to ensure you have an influencer marketing contract.

What is an Influencer Agreement?

An influencer agreement is a legal document which outlines the specific terms of the agreement between an influencer and a brand. Establishing an influencer agreement will enable you to reduce any possible risk which may arise from working with a third party, and ultimately protect you and your business.

Ensuring your influencer agreement is thorough and complete is vital to ensure all obligations, timelines and relevant monetary transactions are met.

What should be included in an Influencer Agreement?

Identification of the Parties
Firstly, it is important to identify each party involved in an influencer agreement. Identification requires the complete legal names of each individual/company involved and relevant addresses.

Terms and Obligations
Outlining the exact terms of the agreement such as when the agreement begins and ends and precisely what is to be done by each party to the agreement is vital to ensure obligations are met when required. These terms should be clear, concise and unambiguous. This will reduce the possibility of disputes between the parties.

Exclusivity Clause
If you wish to employ an influencer to solely endorse your brand, it is important that an exclusivity clause is included in the influencer agreement. Considerations include:

  • Whether the influencer is allowed to produce content or provide service to any other brand?
  • Whether they may endorse competing brands?

Implementing an exclusivity clause and ensuring an influencer will promote your brand exclusively will likely increase the credibility and popularity of your business.

Timeline
Your influencer agreement must contain a clause outlining when the terms of the influencer agreement, and any relevant obligations, begin and end. Doing so will enforce legal obligation on involved parties to ensure terms are met when agreed upon. This may include when an influencer is required to post, and when they may remove posts.

Metrics or KPI’s
It is also worth outlining in detail the specific goals/metrics that your business wishes to achieve when collaborating with an influencer. Such as whether the influencer is reaching a certain amount of people or selling a certain amount of product. Detailing exactly what your business wishes to attain through the partnership will promote a strong sense of direction for all involved parties and ensure that any content produced is tailored to your objectives.

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Cost and Compensation
One of the most vital clauses is regarding the costs to be involved in the influencer agreement. Details should include the amount of payment, form of payment, and schedule of payment including whether it be periodic or a lump sum. Failing to thoroughly consider elements of payment may lead to you losing money rather than increasing the worth of your business.

Content and Legality
You should outline exactly what type of content an influencer is being hired to produce for your brand. If you are drafting an Instagram influencer contract for example, this may involve posting videos or photos on social media. You should include length and format of the content. Also defining the obligations of the influencer ensures you attain the exact material you want to promote your brand.
It is also important to recognise legal obligations that arise when promoting and delivering content on social media to the general public. Pursuant to the Competition and Consumer Act 2010 (Cth), influencers must disclose the commercial arrangement between them and your brand on any post endorsing your business to avoid false or deceptive advertising. This may include verbally disclosing the agreement, displaying a disclaimer on their endorsement, or simply writing a hashtag such as #ad, #paidpartnership or #sponsered.

Non-Disclosure
Across the timespan your business collaborates with an influencer to promote your brand it is highly likely that sensitive information will be exchanged between parties. A non-disclose clause will be important to ensure confidential information is not distributed or shared to parties outside the agreement.

Use of Content
You should also be sure to address the permitted use of any content created by the influencer to endorse your business, including where the content may appear/be posted online.

Intellectual Property
Unless it is specifically agreed, typically the creator of published content will legally own it, unless stated otherwise in your influencer agreement.

Dispute Resolution
An agreement on how parties will approach dispute resolution, should one arise, is recommended. This can facilitate an early resolution of disputes and avoid costly litigation.

Key Takeaways

Before you enter a contract, you need to be sure the contract terms are clear, and the rights and obligations of the parties are clearly set out. This is where we can help. We are expert contract lawyers with many years’ experience. We have reviewed literally every type of contract from all kinds of industries which means we understand where problems can occur. If you have any questions regarding social media marketing agreements or influencer contracts, please contact Lord Commercial Lawyers on (03) 9600 0162 or email us at info@lordlaw.com.au.

About us

Lord Commercial Lawyers is a commercial and business-focused law firm based in the Melbourne CBD. We work with businesses and individuals to help them achieve their legal and commercial goals

For further information about contracts please visit our page on Commercial Contracts and Business Agreements.
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By Andrew Lord

Director
Andrew heads Lord Commercial Lawyers as Director and has been in the Legal Industry for over 40 years.

Updated on May 16, 2024

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