Last updated May 31, 2024
What is an Influencer Contract?
An Influencer Contract outlines the working arrangement between a social media influencer and a client. It details the influencer’s services and the compensation they will receive in return.
An Influencer Contract is also known as:
- Influencer agreement
- Content creator agreement
- Social media marketing contract
- Brand contract
When to use an Influencer Contract
Any time an influencer and a client work together for marketing purposes, they should use an Influencer Contract to formalize their agreement.
LawDepot’s Influencer Contract template can be used for services on any social media platform, including:
- Instagram
- TikTok
- YouTube
- Facebook
- Snapchat
- Twitter/X
Reasons to use an Influencer Contract
Social media influencers are freelancers and independent contractors and should always use contracts when exchanging services for payment. A written agreement is invaluable for outlining both parties' rights, responsibilities, and obligations.
An oral agreement doesn’t offer the same security and support as a written contract. Creating an Influencer Contract in writing gives you legally binding proof of the terms. This tangible evidence will be helpful if there is ever a dispute.
For example, a written Influencer Contract can make the difference between the influencer being paid for their work or not. An influencer who creates the required posts for the client but never gets paid can use the agreement to take legal action.
Similarly, if an influencer agrees to create specific posts for a client but never completes the work they’re paid for, the client can use the written agreement to support a legal claim.
What should an Influencer Contract include?
Here are the important sections that you should include in your Influencer Contract:
1. Location
When it comes to service contracts, such as Influencer Contracts, the applicable laws vary from state to state. With LawDepot’s template, your contract is customized to your chosen state. You should set the location to the state where the client will use the influencer’s services.
If the client’s business spans multiple states, use the state where the main office is located.
2. Contract term
Your agreement can be on a fixed or indefinite term. A fixed term means the contract has specific start and end dates. An indefinite term means the contract has a start date but no predetermined end date.
Set the time span for your agreement by specifying a start date and an end date, if necessary.
3. Business and brand
Different businesses have different marketing needs. To communicate the marketing needs to the influencer, the client should always write a description of their business and brand, including what services or products they offer.
Business descriptions add valuable context for influencers when they create content. Detailed brand information can change the marketing and let the influencer aim for specific target audiences.
You can also describe a concept or image the business is trying to convey to its target audience. Values, goals, and intentions all impact how the brand comes across. Communicating the brand’s image to the influencer can refine the language and imagery they use in their posts.
Businesses often send influencers promotional products. The products can be used as props in posts or as testers for the influencers to try before sharing a review.
Promotional products can include things like:
- Clothes
- Make-up and skin care
- Food or beverages
- Fitness equipment
- Jewelry
State if the client is sending promotional products to the influencer. If the influencer needs to return the promotional products to the client, mention that here, too.
5. Services
In addition to offering brand guidelines, the client should also set specific requirements for the content they want from the influencer.
These requirements can include things like:
- Number of posts by the influencer
- Platforms where the posts should be shared
- Frequency of posts
- Types of posts (e.g., stories, static posts, videos)
- Specific hashtags that must be added to the posts
- Specific dates for posts
- Whether the posts are subject to approval before posting
- Specific wording the influencer should use in their posts
As the client, mention any other requests you have for the influencer. For example, you can ask them to say the brand name multiple times or include a slogan or logo somewhere in the posts.
If the influencer will solicit sales on behalf of the client, you should also describe how the sales will work.
6. Parties
The contract needs to contain the names and addresses of both parties. If the client and influencer are businesses, use organizational names and addresses.
Some influencers have license numbers. You can include one here if you need to.
7. Compensation
In return for their marketing services, the influencer can choose to charge a set rate for their work. Alternatively, they can also work for commission or set another form of payment, such as lump sums.
Some influencers might charge a retainer. The retainer amount depends on the client's trustworthiness and financial stability. A reasonable amount is usually 10-50% of the total contract amount.
If the client doesn’t pay the fees, the influencer can charge a fee for late payments. Reasonable rates can be up to 18% per year on unpaid sums, but every state has its own laws about how much you can charge.
You can also include terms for any work-related expenses the client will reimburse the influencer for, such as travel, equipment, or lodging.
8. Intellectual property
The parties should decide who will own the intellectual property created by the influencer.
Intellectual property includes any content the influencer shares, such as:
- Photos
- Posts
- Texts
- Videos
If the client receives ownership of the intellectual property, they can use it for other marketing purposes. For example, they can use it on their website, in marketing emails, or in other advertisements. If the client receives the ownership, this should be reflected in the amount the influencer is paid.
Alternatively, the influencer can retain full ownership of the intellectual property, in which case the client will have no rights to the content.
9. Other clauses
The following clauses are optional. You can also add any additional clauses not already covered by the agreement.
Termination notice
You can decide whether or not the parties can end the agreement early. If they can, set a notice period for termination. A typical notice period will coincide with the payment term, so if the influencer is paid every two weeks, the notice period should also be two weeks.
Exclusivity
The client can use an exclusivity clause to restrict the influencer from working with direct competitors. However, freelancing influencers have the right to pursue their livelihood without being unreasonably restricted by a client.
If you include an exclusivity clause, the restriction should be narrow and definite and only apply during the contract's term.
For example, outline the exclusivity by naming the direct competitors the influencer can’t work with. The clause might be unenforceable if you instead define competitors as any businesses competing with the client.
Because exclusivity restricts an influencer’s ability to pursue income from other sources, the influencer should be fairly compensated for the restrictions.
Confidentiality guidelines
The client can elect to include a confidentiality clause. By signing, the influencer agrees not to reveal confidential client information, such as customer and product information, that isn't available to the public.
Alternatively, clients could ask a hired influencer to sign a separate Confidentiality Agreement.
What are the Federal Trade Commission (FTC) guidelines for influencer marketing?
The Federal Trade Commission (FTC) is a federal agency responsible for consumer protection. As part of this responsibility, the FTC has created guidelines for influencers, endorsements, and reviews.
For example, influencers are legally required to disclose when they have any form of relationship with a brand. If a brand gives an influencer anything of value, such as money, free products, discounts, or perks, they must disclose it when sharing an endorsement.
Disclosures need to be:
- Easy to understand
- Hard to miss
- Simple and clear
- Visible or audible within posts or videos
- In the same language as the endorsement
It’s the influencer's responsibility to know how and when to disclose information. While the client can request they use specific wording for the disclosures, the influencer remains solely responsible for complying with FTC guidelines.
