Influencer Marketing Contracts: The Business of Creative

contracts

Influencer Marketing Contracts: The Business of Creative

Influencer Marketing Contracts: The Business of Creative 1500 988 admin

The creative vision for an influencer marketing partnership is driven by brand interests and the discovery of the right influencers to match their aesthetics.  The art of managing creative with creatives is outlined here.

Influencer marketing is a business; it is essential to manage a creator relationship with clear deliverables, terms, and expectations to ensure partnership success.

In the second of a two-part series, explore how to manage the business of creatives:

 

DETERMINE OWNERSHIP AND USAGE RIGHTS

In the early days of influencer marketing, brands would often be able to “own” the content outright and refer to it as “work for hire.” Today, creators seek to retain ownership rights of the final piece of content and determine an appropriate length of time the brand has “use of likeness.”  Micro and Mid-tier influencers that don’t yet have agent or manager representation may be more likely to accept “work for hire” campaigns.

Brands often want to retain the rights to distribute the content on other channels. The “use of likeness” clause will clearly delineate how, when and why the brand will repurpose this content. Influencers may also request more compensation if the content will be repurposed for paid advertising.

Brands can allow the creator to own the content and ask for rights on social and digital channels for one year from the campaign launch. At the end of the campaign, brands typically won’t have to take it down, however, they should not continue to promote or publish the content without additional consent or compensation.

 

EXCLUSIVITY AGREEMENTS

Exclusivity restricts the influencer from partnering with competitive brands for a period of time. For example, audiences will notice if influencers are posting for Pepsi one day and Coca-Cola the next. Not only does this ensure an organic and sincere brand and influencer engagement, but prevents depreciation of the creator’s influence or provoking poor brand reflection within their audience.

As influencer marketing has grown as a significant revenue stream, many influencers request additional compensation for an exclusivity term longer than 48 hours. The longer the exclusivity agreement, the less revenue potential they have with other brands.

The overall investment level may inform the length of this agreement. If a creator is signed to an extended partnership with regular posting and they are compensated well, then they are more inclined to accept the exclusivity because they don’t have a need to look for more brands in the same space to grow their influencer business.

 

PAYMENT TERMS & CANCELLATION FEES

Like consultants and contractors, influencers want to know when they’ll be paid before they sign the contract. The standard is net-15 days, with a maximum of net-30 from when the final piece of content is posted. If this is an extended partnership, some brands pay 25% upfront and then set a schedule for the remaining funds.

Contracts may be modified or even canceled based on unforeseen factors; it’s important to clarify what happens in the event of an early cancellation. A best practice would be to compensate an individual a percentage of the total fee if they’ve begun any work (even concepts) for the campaign.

 

REVIEW THE METRICS AND PIVOT IF NECESSARY

Campaigns don’t end with the influencer posting.  A campaign isn’t complete until brands review the metrics including engagement, link clicks, and purchases or signups. Upon reviewing the influencer’s performance against chosen KPIs, brands can determine whether they would like to extend the relationship or pivot in a new direction.

If brands or agencies use a campaign management platform like Tagger, post analytics are automatically pulled for reporting. If not, they can request screenshots of each post’s metrics. Analytics are critical for accountability on what may have been promised during negotiations.

Creating a successful campaign is more than finding the right influencer and creating great content. A successful partnership lies in a contract designed to help both parties determine their needs and who is responsible for each item. When a brand includes these contract essentials, campaigns will thrive and relationships with influencers will be strong.

 

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