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Influencer marketing is increasing in popularity, with global spending on this form of marketing reaching $34.08 billion in 2023. If your brand has decided to tap into the trend, you’ll need to keep the partnership clear and professional—with a formal contract.

So, how do you write an influencer contract that will clearly detail the rights and responsibilities of both the influencer and your brand? In this post, we’ll show you how to draft one and what to include.

Why you need an influencer management contract

If you’re entering into any kind of business partnership, putting the agreement in writing is in everyone’s best interest. A contract formally defines the partnership, protects the interests of both parties and outlines roles and expectations.

When your brand hires an influencer to promote your products and services, the contract will cover specifics such as the scope of work, terms of payment, and intellectual property rights. The purpose is to foster transparency and trust as well as to avoid confusion or disagreement.

Without a clear contract in place, there’s a risk of both sides failing to keep up their end of the bargain. For instance, the influencer might post something that doesn’t adhere to guidelines, or the brand might fail to pay on time. Potential hurdles can be sidestepped by laying down the right foundation from the start. 

How to draft one and what to include

The exact details and stipulations of the contract will vary between different brands and different types of influencers, but there are always essential elements to include:

Identify the parties involved

Start by adding the name and address of your company, plus phone and email details. You’ll also need the name of the influencer, their postal and email addresses, phone numbers, and social media handles. This makes it clear that the contract is specific to these parties.

Define scope and terms of services

Describe exactly what you expect from the influencer—such as content type, number of social media posts in a given period, and platforms to use. Include brand guidelines and disclosure requirements (such as hashtags denoting sponsored content), and outline the content approval process.

Specify clear invoicing schedule and payment terms

State how and when the influencer will be paid for content creation—is it a set fee or performance-based? Include the amount (or the value of non-monetary compensation) and the payment schedule. Define the currency, payment method, and invoicing deadlines.

For instance, they may use a free online invoice generator to simplify the process.

Detail an expense reimbursement process if applicable

Some influencers use their own resources, while some brands allow them to claim expenses (such as travel to promotional events). Either way, put it in the contract and state your protocols for submission and approval. The right accounting or expense management solution can make it much easier to handle expense claims.

Include a confidentiality and exclusivity clause

An exclusivity clause tells influencers that they must refrain from working with (or mentioning) competitors. Include a confidentiality clause or non-disclosure agreement (NDA) whereby the influencer cannot share details of compensation or company performance.

Outline key performance indicators (KPIs)

Your influencer needs to know which metrics and KPIs you’ll use to judge their performance. Depending on your specific goals, these might include conversions, signups, reach, or engagement. You can track performance metrics, goals, and other HR processes using HR software or dedicated influencer tools. The right solution will help streamline the partnership and increase transparency. 

It’s also vital to state whether the influencer needs to provide access to performance data and what exact data they need to provide you with. 

Include any other relevant clauses

You could also add an arbitration clause and state who is liable for any problems caused by influencer posts. Some contracts will feature a “force majeure” clause, which absolves liability if something such as a natural disaster prevents either party from fulfilling their obligations.

Clarify intellectual property rights 

It’s vital that you clarify ownership and usage rights for influencer content.

In some cases, the influencer owns the intellectual property. In others, it’s the brand—which also reserves the right to modify content or reshare it on other channels.

Establish grounds for termination

An influencer agreement needs a termination clause stating the circumstances in which either party may end the partnership—such as breach of contract. You might also permit no-fault termination if prior notice is given.

Have a look at our 2024 affiliate marketing forecast, with predictions and trends

Tips for drafting influencer management contracts

So, now you know what to put in the influencer agreement. But what else can you do to make the contract process smoother and build a successful partnership?

Track all campaign-related expenses to measure ROI

The only way to evaluate the success of an influencer program is to measure its ROI, so you’ll need to know how much you spend on each campaign. This includes compensation for influencers, as well as other expenses, including paid advertising. That way, you’ll know if influencer marketing is worthwhile.

Incorporate a performance-based payment structure

Rather than paying a set amount each month, it’s often best to base influencer compensation on performance. This might be tied to the number of sales or new customers generated by an influencer marketing campaign or engagement stats such as retweets and likes. 

Use simple and clear language in the contract

Don’t make the contract overly wordy or try to use fancy legal jargon. Clarity is the most important thing so that both parties fully understand what’s been agreed to. It’s a good idea to use a standard influencer contract template and customize it for your needs.

Consult legal experts for guidance

It’s always worth taking legal advice when creating any contract, especially in the area of content rights and confidentiality. This saves needless worry for both parties. If your company doesn’t have its own legal team, you can ask an external expert.

Make sure both parties understand and agree to the terms

Once the contract negotiations are done, double-check that everyone’s happy with the document. Don’t forget to sign and date both copies and keep them safe. It’s often a good idea to use employee onboarding software to store details and contracts as well as provide any brand guidance and initial information an influencer might need to help them get started. 

Start your partnership off right with an influencer management contract

Whether it’s a one-off influencer campaign or the start of a long-term business relationship, a contract helps to make sure the collaboration is ethical, compliant, and mutually beneficial.

A comprehensive agreement makes both parties aware of their rights and responsibilities, from the type of content required to the performance metrics used to evaluate the campaign. Use our tips to draft a robust contract that protects everyone.

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