What Should an Influencer Agency Contract Include?
What should an agency contract between an agent and an influencer include? What needs to be in that influencer agency management contract? Before you establish any working relationship with an agent, a manager, an agency, whoever it is, there needs to be a contract in place that dictates the terms of the relationship, and what should be included in that agreement would be the length of the agreement, how to terminate the agreement, the responsibilities of the agent, the responsibilities of the influencer, what happens if there is a dispute, what are some examples of breach of contract and then obviously, the payment structure between the influencer and the agent. Normally, it would be a percentage of whatever the agent brings to the influencer.
20% is an average. Some of the most important terms in the contract will also include what happens after the agreement terminates. Almost any agent is going to require some language in the contract that states the influencer is going to have to pay the agent, even after the contract terminates for a period, for any deals that the agent brought the influencer. Let’s just say you are an athlete, and you have a sponsorship opportunity with maybe an apparel company. If the agent brought you that deal, and even if the apparel company wants to continue the relationship, the athlete is going to have to pay 20% back to their agent for normally a year. That’s since agents don’t want to bring an influencer deal, they terminate the relationship and get out of having to pay the commission to the agent.
Obviously, I would consider that reasonable and fair. Now, if the percentage is extended indefinitely, meaning, if the agent says, if I brought you this deal, you owe me 20% forever, well, that’s not reasonable, and that’s not something I would sign if I were an influencer. There must be a cutoff date, and you could even tear down the percentage over time as well. But that’s one thing that will likely be in the contract. And that usually is negotiated. Another aspect that I find is missed frequently is most of the time, you’re going to have deals with a set amount, and it’s based upon historical metrics. Other topics of interest include:
You will have to provide these metrics to these companies like how many average views do you get on a video, what’s the average duration that people watch the video, what’s the interaction, and the subs versus non-subs, all that data goes to these companies, and then they decide of what is a reasonable price for the sponsorship opportunity. Well, if you have a deal that’s based purely on metrics, meaning, you don’t know what you’re going to make until the video has been out there and calculations have been completed. Your agent is always going to have access to all your metrics. They’re going to have access to your Instagram, your TikTok, your YouTube, any of those things. Well, if a relationship ends, you’re almost always going to revoke access from the agent to those accounts. But if you have a compensation structure that’s based purely on metrics, I can promise you the agent is going to want access to make sure they’re being paid correctly.
Usually, there is a dispute if it’s not written in the contract. So, there needs to be somewhere in the contract that determines what’s going to happen in that scenario. If there is some deal that’s based purely upon metrics, how is the agent going to get access to those numbers and understand that they’re accurate without getting full access to everything that the influencer has because the influencer is absolutely going to want to bar their past agent from getting into their current numbers. You can always negotiate any term in a contract. There’s nothing that’s ironclad, especially for an agency contract. The influencer has the leverage in these negotiations. The agent is going to make money off the influencer. And so, the influencer does/can exert some force in getting favorable terms.
Now, if this is a good professional agent, there’s going to be a limit to how much they’re willing to change. They’re also very valuable if they do a great job. And there’s always a push and a pull. But don’t think that if the agent says this is a take it or leave it deal, you need to leave it. There has to be some give and take in any contract negotiation. Alright, that’s what should be included in an agency influencer contract.
Influencer Management Contract Questions?
Contract Review, Termination Issues, and more!