What You Should Know About Influencer Marketing Agency Contracts
Influencer marketing has become one of the most lucrative marketing options brands use globally. It is usually an effective way of engaging with leads, driving traffic, and generating sales. Due to the hassles in creating campaigns, companies now opt to hire marketing agencies to represent them.
An influencer marketing agency connects social media influencers and brands to create, manage, tailor, and optimize influencer marketing campaigns. The agency is also responsible for matching a company’s target market to the right influencers. Statistics show that eight out of every ten customers have bought a product after seeing it recommended by an influencer.
If you are a social media influencer and want to develop a relationship with an agent or agency, you must sign an influencer agency management contract. It’s vital to be prepared with this document as it provides information about everything related to the agreement. But due to the proliferation of contracts, it’s best to get an Influencer Manager Contract Attorney to review the contract and ensure it meets all requirements.
In this article, you’ll learn everything you need to know about influencer marketing agency contracts. We’ll cover:
- What is an influencer marketing agency contract?
- What Percentage Do Influencer Agencies Take?
- Do Influencers Have Agencies?
- How Do I Get an Agent as a Social Media Influencer?
- Does an Influencer Need an Agent?
- What Should an Influencer Agency Contract Include?
Let’s get started!
What Is an Influencer Marketing Agency Contract?
A socialmedia influencer contract is a written legal document that defines the working terms of the relationship between a marketing agency and a brand influencer. The legal agreement contains all the essential information about the campaign between the parties.
The agreement document sets out all duties and expectations of a brand and its influencer concerning the content creation process like video, audio, text, and images. It also ensures that the business and influencer abide by the contract. As an influencer, this contract protects your interest and helps you to decide the best thing the company can achieve based on your pay. This document helps reduce misunderstandings or confusion about a campaign and helps smoothen the process.
What Percentage Do Influencer Agencies Take?
Influencer agencies help negotiate rates with brands and set up payment plans for the company. The standard percentage of commission agencies take from a social media influencer is about 20%. Although it can be more or less, the average is 20%.
It may be your dream to get an influencer agency to represent you, handle your business, and help you get more pay. Hence it’s essential to know that they take a commission based on every paid work they get. If someone asks you for 40% or 30%, it’s not a reasonable amount. You also need to know that most influencer management agreements are exclusive, implying that the influencer cannot have other managers. For example, you cannot have four managers search for deals and bring them to you, only for you to choose which one to accept.
Since it’s an exclusive relationship, only the manager can look for opportunities for the brand influencer. Even if your family member, friend, another company, or influencer reaches out to you without your present agent having an idea about it, the agreement will state that your agent will be the person to negotiate the deal. You will also have to give them a percentage of commission regardless of their non-involvement in finding you the deal.
Do Influencers Have Agencies?
Many influencers have agencies that work with them on TikTok, Facebook, Instagram, YouTube, and Snapchat and act as talent agencies for them. Talent agencies are responsible for representing and securing endorsements for influencers.
A point may come in any influencer’s career where they need representation and assistance to boost their career. One way to make this happen would be to look for an agency to assign you an agent that will:
- Speak on your behalf
- Get you deals
- Negotiate pay
- Assess the contract language
- Help grow your career
- Find you opportunities
Top influencers usually have many potential opportunities and may not be interested in all of them. It’s an agent’s responsibility to say, “no, we don’t need it” or “we can’t discuss this.” Although influencers can manage their career based on the content they create and what’s in it, agents make a significant difference. They can help bring you great deals, negotiate a fair price, and ensure the contract contains the appropriate language.
How Do I Get an Agent as a Social Media Influencer?
One of the ways to reach out to an agent, agency, or manager, is through your friends. As an influencer, you are likely to hook up with other influencers. Thus, it’s important to ask them who they’ve used, to know their past agents and how they operate.
You can also check search engines to see agencies looking for great influencers. But then some smaller agencies and managers may not have a vast web presence, so you may not find the person you want by googling. Avoid choosing friends as managers since being an agent needs experience and vast knowledge.
Does an Influencer Need an Agent?
Influencer agents act as a shield between the influencers and sponsors and usually have many responsibilities. It’snot a must for an influencer to get an agent. But due to the essential duties agencies perform, it is better to get one.
These agents perform duties like finding and bringing sponsorship opportunities to the influencer, negotiating marketing agency contract terms, payment terms, what the influencer must do, and more. As an influencer, you can’t perform every task. If you are initiating ideas, creating content, and searching for deals, you won’t have enough time to concentrate on what you are best at. An agent can do all these for you and reduce your workload. You need an agent if you:
- Have an audience that appreciates your content and is hungry for more
- Get more offers for brand deals than you can handle
- Do brand deals but aren’t sure how much you’re worth
- Are prepared to dedicate more time and develop yourself into a business.
What Should an Influencer Agency Contract Include?
An influencer agency contract should include the length of an agreement, duties of an influencer, roles of an agent, how to terminate the contract, what happens if a dispute occurs, examples of breach of contract, payment structure between the agent and influencer, and what should happen after the contract terminates.
The contract shows an agreement between a marketing agency and an influencer. Before creating a working relationship with an agency, agent, or manager, a contract should be available to dictate the relationship terms. In the case of termination of contracts, almost all agents will need the contract to state that even after a contract ends for a period, the influencer will still pay the agent for deals the agent gave the influencer. The payment should not last forever, so there should be a cutoff date. That’s why you need an influencer manager contract attorney to review your contract.
Get Help from A Lawyer
Our influencer manager contract attorney would love to help you throughout your contract process. They will ensure your contract follows federal trade commission guidelines, your contract language favors you, and you understand all clauses.
Contact us today, and we can assess the vital elements that constitute your contract.