Social media influencer contract: 5 points to look out for

SOCIAL MEDIA INFLUENCER CONTRACTS: 5 POINTS TO LOOK OUT FOR

An increasing number of brands are using influencer marketing via social media platforms such as Facebook, Instagram and Twitter as an effective way of promoting and advertising their products and services to every day consumers.

Influencer agreements are often used to engage an influencer or content creator to endorse a company’s product or service in return for payment by way of products or monetary compensation. An agreement will often be drafted by the company from their perspective as they are likely to initiate the relationship, however, there may be some important areas where an influencer may wish to negotiate the agreement.

Below are some key clauses an influencer should be mindful of:

1. Terms of Agreement

Be aware of the services you are providing as an influencer. The agreement may include a separate detailed schedule which can include the product category and industry as well as social media guidelines. The terms should include details of the duration of the partnership and any specific requirements of the influencer.

2. Copyright

This clause is important as it will establish the ownership of rights to the work that is contributed by the influencer or content creator. The agreement will likely be drafted to assign all rights to the company.

The company will consider the branded content posted by the influencer will remain subject to a license to the social media provider, for as long as the content remains on that social platform.

3. Advertising laws and regulations

Social media endorsements are a form of advertising which are subject to legal and regulatory requirements. Therefore, they must be identifiable as advertising. Advertisers (influencers also fall into this category) must disclose their commercial relationship with the company and make it clear that have received a form of payment in return for the content, for example signposting the content with #ad or #advert. Put simply, the influencer must be clear to the public that they are endorsing the product or service making it clear that they have received a benefit or payment in some form.

The Committee of Advertising Practice published a guidance note ‘Influencers’ guide to making clear that ads are ads.’ Along with an influencers flowchart which can help determine whether a post is an ad and whether it needs to be labelled. Further guidance can be found on the Advertising Standards Authority website.

4. Employment Status

The agreement will often assume that the influencer is an ambassador for the company and not an employee and will therefore be self-employed and solely liable for tax purposes. If that is the case, the influencer will therefore need to remember to pay the correct amount of tax to HMRC.

5. Termination

The termination clause is often drafted in favour of the company. The conduct of the influencer is vital to the company’s ability to manage its brand and it is likely that the company will reserve the right to end the partnership if it feels the influencer is or could be seen to be damaging its reputation. It is important that the company makes it clear at the beginning of the relationship the values that are important to them and that the influencer understands the brand’s values, in addition to ensuring the brand’s values align with their own.

An influencer may wish to negotiate the termination clause which reflects a right of early termination for when they may wish to legitimately end the partnership. Reasons may include if the company goes into administration, or the company enters a new area of business which isn’t consistent with the influencer’s values.

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