Do Influencers Have Agencies? | Influencer Agency Need
Do most social media influencers have agencies? At some point, in any influencer’s career, it would be advantageous for them to get assistance and representation in boosting their career. And one way of doing that would be to find agency that will then assign you an agent who will then advocate on your behalf, find you deals, negotiate price, work on the contract language, and essentially assist you in growing your career and bringing you opportunities. An agent can also act as a shield between sponsors that are looking to create opportunities with an influencer.
Does an Influencer Need a Marketing Agency?
And indeed, if an influencer is big enough, they will have tons of potential opportunities. However, if they would have no interest in many of those opportunities, the agent acts as your shield to say, no, we’re not going to discuss this. We’re not interested.
Now, there are also, I guess, other ways for influencers to be represented. You can have a manager, you can have an agent, you can be with agencies who will then assign you an agent, or maybe it could be a collaborative thing where the agency goes out and finds deals, and then you may not have one specific agent. But sometimes, there is also a distinction between a manager and an agent. Some people look at a manager as someone who deals with the day-to-day tasks of the influencers, managing their career. They’re not necessarily negotiating or finding them deals.
And then the agent would be the one that would do that. I find those terms are used interchangeably. You may hear someone say ‘manager.’ You may hear someone say an ‘agent.’ It’s usually the same thing. Now, if you’re going to enter a relationship with agencies, there needs to be an influencer agency management contract. And usually, that’s called an exclusive management agreement or an exclusive agency contract, something like that.
Exclusive Management Contract
And then it just dictates the terms of the relationship. It will say whether the relationship is exclusive. Most agents or agencies are going to require that they’re the only representative of the influencer. This means that even if a deal came to an influencer, from a friend, family member, or another influencer. If the company reached out to them directly, no matter what, they then have to refer that deal to their current agent, who will then do the negotiation and get a percentage of that deal even though they weren’t the ones that originated it.
A normal agent/agency will receive around 20% of whatever the compensation is for the influencers. So, if an influencer, I guess, starts a deal with a meal planning company, sometimes it could be per spot, sometimes it could be per year. I have a current client who has a meal prep company, and they require one 90-second spot in a YouTube video each month. But they pay him an annual amount instead of just per spot. Sometimes if a company is interested in establishing a relationship with an influencer, they’ll start on a video-by-video or post-by-post basis and then see how it works and may move into a long-term relationship with that person.
2 Types of Negotiations
Regarding negotiating with the agent, there are two types of negotiations. One is influencers with the sponsors. And two, the influencer with the agent and establishing that relationship. The things that parties can negotiate, obviously, are the percentage that the agent takes from the influencer and how long after the contract terminates, the influencer will have to pay that agent. So there should be a clause, or at least there will be a clause in almost any agency contract that states that influencers will owe agencies for usually about a year after the contract terminates. The same percentage of any deal that agency brought them. One of the biggest concerns of any agency is they bring a deal to an influence; that person terminates the relationship, takes the deal, then cuts the agent out of getting any commission for the deal.
Influencers and Agency Contracts
And that’s why that language is generally in the contract. Now, going out to find a reputable agency, the best place to find that is from your friends. If you’re an influencer, you likely have relationships with other influencers, and it’s a good idea to talk to them about their experience. Maybe they’ve had multiple agents or agencies and see. Usually, bad agencies can get a bad reputation quickly, spreading fast. I would also go online and Google if you’re interested in someone to find them out, see if there are any news articles about them, or see if you can find out anyone they’ve represented in the past. Maybe you want to reach out to them. You want to do due diligence in determining who’s becoming your agent.
This person can make or break a career. That is the truth. Influencers have independent creativity and can handle their career regarding the content they produce and what’s in it and all that stuff. But an agent can make a difference. A good one can make a difference in bringing the right deals to this person, negotiating the right price, and ensuring the right language is on the contract. And I find most influencers are either naive or just not interested in dealing with that part. They just want to deal with the creative aspects of being an influencer. And that’s how an agent can help blast off someone’s career.
Other Blogs of Interest
How Do I Get an Agent as a Social Media Influencer? | Influencers and Agents
What is the best way for social media influencers to find an agent? At some point, as an influencer grows, it will make sense to hook up with a professional. It could be a manager or agent marketing agencies. It’s all the same thing. It’s essentially someone who is going out on your behalf, looking for sponsorship or collaboration opportunities. They will bring you the deal. They will negotiate the terms of the compensation, the terms of the relationship, how many posts you must do, how long the spot if you’re doing a YouTube video, and the details of the situation. And they essentially act as a shield between the influencers and the sponsorship company.
Influencers Search for an Agent
Now, what’s the best way to look for an agent if you’re so inclined? As someone who has represented athletes in the past, I find the best way to find an agent is through your friends. If you’re an influencer, you likely have relationships with other influencers, and it is best to reach out to them to see who they’ve used, see who they may have used in the past but have terminated the relationship with. That’s the best way to do it because you’ll know firsthand how the person operates. Obviously, this has to be someone you trust if they’re going to give you advice on who a potential agent is. You could Google around on the internet. There certainly are some larger agencies.
Most individuals, like smaller managers and agencies, may not have a huge web presence. So, you’ll be missing out if you try to Google somebody. I don’t think that’s the best avenue. The one avenue that you absolutely should not take is utilizing a friend. Repeatedly, I find people who will say, oh, you know what? I’ve been interested in getting into being an agent or manager. And then maybe one of your friends is like, oh yeah, I can do it. I think this is a bad idea for several reasons. One, knowing the industry is extremely important for an agent. They need to know the going rate for an Instagram story, a YouTube video, or a personal appearance. You’re not going to know these things if you’ve never been through this before. That will also know when to push back, how much is expected of the influencer, and how many appearances they must make. And what the industry norms are.
Take a Professional Agent With Experience
Not to say it’s impossible for someone who’s never done it before, but it’s very difficult. And it’s very likely the influencer will be leaving money on the table if they go with somebody who’s never had experience doing it before. Plus, emotions can get, or a better way of saying it is, emotions can interfere when you have a friend also acting as a business partner. If the relationship sours in the business realm, it will also spill over into the personal realm. And most people don’t want to lose a friend over something like this. So, if you’re going to find an agent, absolutely make sure it’s somebody who is a professional, who has experience doing it and has a roster of clients that they can show you.
Many agents will start in agencies, get their feet wet, learn the business, and then go off on their own. That’s probably the normal course of business. Now, does this agent have to be an attorney? No, they don’t. As an attorney myself, they certainly can bring more contract knowledge if they have experience with doing contracting, but an agent does not have to be an attorney. I would say at least half of them are not. Now, how much do you have to pay this person? That’s always a big question. It’s based upon a percentage of the commission. Whatever deals this person brings you and negotiates the price, they will get a portion of that.
Influencer Marketing Agency Advantages
Very rarely are you going to find any agent influencer relationship where it’s a flat fee. Most of the time, the percentage is around 20%. It could be less, it could be more, but the average is around 20%. That’s considered a reasonable amount. If someone is asking you for half or 40%, that is not a reasonable amount. You must do, I guess, a little math equation in your mind about, alright, is the value that this agent will bring me worth more than the 20% of all of my deals that I will have to give to them? Because most of these agents will have an exclusive management agreement with the influencer, that means the influencer cannot use anyone else for any deal-making.
Not only that, if an influencer has a friend, family member, another agent, or influencer they know. If they have anyone bring them deals independently of their current agent. Most of the contracts will still have the influencer give whatever potential opportunity is to their agent. And then that agent will then negotiate the deal and still get the 20% even if they had nothing to do with bringing it to you.
Most agents fear that they will bring a great opportunity to an influencer. The influencer terminates the agreement and then tries to get out of having to pay the agent. That’s why an influencer agency management contract is extremely important. And generally, in that scenario, most influencer management contracts will have some provision that states that the influencer will owe their agent whatever state of percentage is. Usually for a year after the agreement terminates for any of the deals that that agent negotiated on behalf of the influencer.
Wrapping Up
To wrap up, talk to your friends, see who they’ve used and if you’re going to Google, I would go for news articles, see some of your favorite influencers, and there may be a mention of who represents them, and then you can contact them that way.
Certainly, there will be a threshold. Some agencies simply are not going to work with people that don’t have a certain amount of following. And that’s okay. But you should be able to find someone who is professional and reputable and can assist you with your career no matter what level you are at.
What Percentage Do Influencer Agencies Take? | Influencer Agency
What is the percentage cost of commission that agencies take from a social media influencer? Suppose you are an influencer interested in establishing a relationship with an agency or an agent. In that case, there will be an influencer agency management contract that you have to sign. And then this contract is going to dictate the terms of their relationship. A normal management contract will state:
- How long does it last
- Details on terminating the contract
- What happens if there’s a dispute
- The responsibilities of both parties
- The payment structure between the influencer and the agent.
Usually, most management influencer management agreements are a percentage cost commission. That is for whatever the manager brings to the influencer.
Social Media Agencies Cost for Influencers
And the average percentage cost is around 20%. Certainly, it can be less, can be more, but 20% is about an average. Now, a couple of considerations:
- It will likely be exclusive in almost every influencer management agreement. That means the influencer will not be able to have other managers out there.
- Influencers can’t have five managers going out and finding themselves deals and then bringing them back. An influencer decides which one you want to go with. It’s going to be an exclusive relationship.
- The agent/manager will be the only person who can facilitate the sponsorship opportunities for the influencer. Even if a friend, family member, another influencer, or a company reaches out to the influencer directly. And even if your current agent has absolutely nothing to do with the deal. The contract states that you still have to give them the deal to negotiate.
- You’ll have to pay them a percentage cost of commission, no matter whether they had anything to do to originate the deal.
Paying the Percentage Cost After Termination
Now, there may be some wiggle room in that scenario. Still, for the most part, no reputable agent will provide a management contract to an influencer without a language like that. There also is going to be language that states after the contract terminates, the influencer will still have to pay the percentage cost of the commission back to the agent for a period. For instance, let’s say you’re in fitness and have a deal with an apparel company.
Your agent brought it to you and negotiated the deal. Even if you terminate the relationship with that agent, they’ll still get 20% of that apparel deal, normally a year after the contract termination. Most agents are not interested in bringing deals to an influencer. Then the influencer terminates the relationship, taking the deal and then avoiding having to pay any of the commission to the agent. That’s why the language in the contract will dictate that it’s likely you’re going to have to pay the agent even if you no longer work with them anymore. There are some strategies for either lessening the amount of time or the rate you must pay them. But that’s all part of negotiating the management agreement before signing it. So, that’s a little bit about how much an influencer must pay their agent.
Is it a reasonable amount? Certainly, if the agent is good and knows what they’re doing, it can be a career changer for some influencers to have the right management in place.
What Should an Influencer Agency Contract Include? | Agency Influencer Agreement
What should a contract between agents and influencers include? What needs to be in that influencer agency management contract? Before establishing any working relationship with an agent, a manager, an agency, whoever it is. A contract that dictates the relationship’s terms needs to be in place. It should also contain the length of the agreement, how to terminate it, the agent’s and influencer’s responsibilities, what happens if there are a dispute, and examples of contract breach. Then obviously, the payment structure between the influencer and the agent. Typically, it would be a percentage of whatever the agent brings to the influencer. 20% is an average.
What Happens After the Contract Terminates Must Also Be Included
Some of the most important terms in the contract will also include what happens after the agreement terminates. Almost any agent will require some language in the agreement that states the influencer will have to pay the agent. Even after the contract terminates for a period, for any deals that the agent brought the influencer. Let’s say you are an athlete, and you have a sponsorship opportunity with maybe an apparel company. If the agent got you that deal, and even if the apparel company wants to continue the relationship, the athlete will usually have to pay 20% back to their agent for a year. That’s because agents don’t want to bring an influencer deal, then 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 the agent says, if I brought you this deal, you owe me 20% forever, 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. But that’s one thing that will likely be in the agreement. And that usually is negotiated.
Influencer Contract Deals Based on Historical Metrics
Another aspect that I find people miss frequently is that you’re going to have deals with a set amount, and it’s based on historical metrics. You will have to provide these metrics to these companies. How many views do you get on a video, and what’s the average duration people watch them? What’s the interaction, and the subs versus non-subs? All that data goes to these companies, who decide on a reasonable sponsorship opportunity price. Well, if you have a deal based purely on metrics, you don’t know what you’re going to make until the video has been out there and calculations completed.
Your agent is always going to have access to all your metrics. They will have access to your Instagram, TikTok, YouTube, or any of those things. Well, if a relationship ends, you almost always revoke access from the agent to those accounts. But if you have a compensation structure based purely on metrics, I can promise you the agent will want access to ensure they’re being paid correctly.
Usually, there is a dispute if it’s not written in the agreement. So, there needs to be somewhere in the contract determining what will happen in that scenario. Suppose there is some deal based purely upon metrics. How will the agent access those numbers and understand that they’re accurate without full access to everything the influencer has? Because the influencer is absolutely going to want to bar their past agent from getting into their current numbers.
No Good Influencer Contract is Ironclad
You can always negotiate any term in an agreement. 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.
If this is an excellent professional agent, there will be a limit to how much they want to change. They’re also treasured 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 people should include in an agency influencer agreement.
How Do I Get an Agent as a Social Media Influencer? | Influencers and Agents
What is the best way for a social media influencer to find an agent? At some point, as an influencer grows, it will make sense to hook up with a professional. It could be managers or agent marketing agencies. It’s all the same thing. It’s essentially someone who is going out on your behalf, looking for sponsorship or collaboration opportunities. They will bring you the deal. They will negotiate the terms of the compensation, the terms of the relationship, how many posts you must do, how long the spot if you’re doing a YouTube video, and the details of the situation. And they essentially act as a shield between the influencer and the sponsorship company.
Influencers Search for an Agent
Now, what’s the best way to look for an agent if you’re so inclined? As someone who has represented athletes in the past, I find the best way to find an agent is through your friends. If you’re an influencer, you likely have relationships with other influencers, and it is best to reach out to them to see who they’ve used, see who they may have used in the past but have terminated the relationship with. That’s the best way to do it because you’ll know firsthand how the person operates. Obviously, this has to be someone you trust if they’re going to give you advice on who a potential agent is. You could Google around on the internet. There certainly are some larger agencies.
Most individuals, like smaller managers and agencies, may not have a huge web presence. So, you’ll be missing out if you try to Google somebody. I don’t think that’s the best avenue. The one avenue that you absolutely should not take is utilizing a friend. Repeatedly, I find people who will say, oh, you know what? I’ve been interested in getting into being an agent or manager. And then maybe one of your friends is like, oh yeah, I can do it. I think this is a bad idea for several reasons. One, knowing the industry is extremely important for an agent. They need to know the going rate for an Instagram story, a YouTube video, or a personal appearance. You’re not going to know these things if you’ve never been through this before. That will also know when to push back, how much is expected of the influencer, and how many appearances they must make. And what the industry norms are.
Take a Professional Agent With Experience
Not to say it’s impossible for someone who’s never done it before, but it’s very difficult. And it’s very likely the influencer will be leaving money on the table if they go with somebody who’s never had experience doing it before. Plus, emotions can get, or a better way of saying it is, emotions can interfere when you have a friend also acting as a business partner. If the relationship sours in the business realm, it will also spill over into the personal realm. And most people don’t want to lose a friend over something like this. So, if you’re going to find an agent, absolutely make sure it’s somebody who is a professional, who has experience doing it and has a roster of clients that they can show you.
Many agents will start in agencies, get their feet wet, learn the business, and then go off on their own. That’s probably the normal course of business. Now, does this agent have to be an attorney? No, they don’t. As an attorney myself, they certainly can bring more contract knowledge if they have experience with doing contracting, but an agent does not have to be an attorney. I would say at least half of them are not. Now, how much do you have to pay this person? That’s always a big question. It’s based upon a percentage of the commission. Whatever deals this person brings you and negotiates the price, they will get a portion of that.
Influencer Marketing Agencies Advantages
Very rarely are you going to find any agent influencer relationship where it’s a flat fee. Most of the time, the percentage is around 20%. It could be less, it could be more, but the average is around 20%. That’s considered a reasonable amount. If someone is asking you for half or 40%, that is not a reasonable amount. You must do, I guess, a little math equation in your mind about, alright, is the value that this agent will bring me worth more than the 20% of all of my deals that I will have to give to them? Because most of these agents will have an exclusive management agreement with the influencer, that means the influencer cannot use anyone else for any deal-making.
Not only that, if an influencer has a friend, family member, another agent, or influencer they know. If they have anyone bring them deals independently of their current agent. Most of the contracts will still have the influencer give whatever potential opportunity is to their agent. And then that agent will then negotiate the deal and still get the 20% even if they had nothing to do with bringing it to you.
Most agents fear that they will bring a great opportunity to an influencer. The influencer terminates the agreement and then tries to get out of having to pay the agent. That’s why an influencer agency management contract is extremely important. And generally, in that scenario, most influencer management contracts will have some provision that states that the influencer will owe their agent whatever state of percentage is. Usually for a year after the agreement terminates for any of the deals that that agent negotiated on behalf of the influencer.
Wrapping Up
To wrap up, talk to your friends, see who they’ve used and if you’re going to Google, I would go for news articles, see some of your favorite influencers, and there may be a mention of who represents them, and then you can contact them that way.
Certainly, there will be a threshold. Some agencies simply are not going to work with people that don’t have a certain amount of following. And that’s okay. But you should be able to find someone who is professional and reputable and can assist you with your career no matter what level you are at.
Does an Influencer Need an Agent? | Influencers and Agencies
Does a social media influencer need an agent? What does an agent do for an influencer? They can do a lot. Now, can they do it well? I guess that’s an open question. The role of an agent is to do two things: one, find sponsorship opportunities for the influencer and bring them to them, and then two, negotiate the terms of the marketing agency contract, the payment, the frequency, and how much the influencer must do. And then, they act as a shield between the sponsors and the influencer. There are plenty of influencers who are more than capable of doing this on their own. However, I’m not necessarily sure that’s the smartest business strategy.
Influencer Agents Are Not Inexpensive
You can’t do everything as an influencer. Suppose you are creating content, coming up with ideas, negotiating with the sponsors, going out, and finding deals. In that case, you will not have enough time in the day to do and focus on what you’re good at. An agent can take a huge burden away from an influencer by, as I said before, being that shield and then handling all the details of that relationship. Now, the downside of working with an agent, well, obviously, you’re giving up a percentage of whatever you’re making from the sponsors. Any agent will get a percentage of your commission from the sponsor’s compensation. Normally, that’s around 20%. So, you’re giving this agent up 20% of your income.
Is the Agent Worth the Percentage You’re Paying
Now, you also must think on the other side. That this agent should be providing more than the 20% that you’re paying them in potential opportunities. Every good agent, manager, marketing agencies, whatever you call it, has established relationships with brands. Then their job is to push their people to those brands to see them as an asset and use them in their influencer role. So, a good agent should be well worth the 20% by bringing many more opportunities to the influencer than they would have if they had been doing it on their own. And then two, negotiating the compensation. I find that many influencers are just starting, and maybe they’re building their brand and doing a great job of providing great content and gaining followers.
Those influencers don’t know what their worth is. And so, if someone reaches out to them and decides to do it on their own, they have no idea if they’re receiving a fair salary or well underpaid. Whereas a good agent will tell you, you are worth this exact amount based on your metrics. The average view duration on YouTube is important, and the audience, the audience’s age, and how many people are watching are subs versus not. There are a ton of metrics that go into what makes an influencer worth it to partner with the sponsor. And then, all of the metrics the sponsors will want to see, and the agent should be great at facilitating the correct compensation for the influencer.
What Needs to Be in a Management Contract?
Now, before you enter any relationship with an agent, marketing agencies, a manager, or whatever you want to call it, you need a contract that dictates the terms of that relationship. I have found influencers who are using like a friend who’s like, oh, I know how to do this. And they go about it with a handshake which is a terrible way of doing business. As an influencer, and you are going to make money as an influencer, you are a professional. You need to act like a professional, meaning you need to have contracts with all the people working for you. And that contract needs to dictate the terms of the agreement, such as:
- How much you’re paying them
- What they’re doing for you
- Exactly how long the contract lasts
- How it terminates
- What happens if there’s a dispute
All those need to be in the contract. Suppose those things aren’t in a contract with an agent. They do pop up, where litigation, legal disputes, whatever you want to call it, can happen.
Influencer Marketing Agencies Advantages
So, does an influencer need an agent? No, not necessarily. However, if they’re good, they will be worth their weight in gold to the influencer. I can promise you that. Now, I find a lot of charlatans in this arena, meaning people that hold themselves out as having all of this experience and all these connections. So, it would help if you did your due diligence when finding an agency, an agent, or a manager. Who else have they represented in the past? Reach out to those people and ask them what their relationship was like. Are they still working together? Is there a reason why they ended their relationship? Suppose somebody can’t provide you with anyone they’ve worked with, or you’re the first client. Then, it would help if you thought again about doing that.
Think of it this way: I graduated from law school 20 years ago. And when someone talks to me about their contract, I can say, yes, I have 20 years of experience doing this. And these are all the things that I’ve done. Whereas, if someone is just out of law school and just passed the bar, would I want to use someone who’s been a lawyer for one week versus 20 years? I’m not saying they have to have 20 years of experience. They do not. But putting your career in the hands of someone without experience is just a bad business strategy. So, if you have any questions about a potential influencer management/agency contract, feel free to call my law firm.
When Does an Agent No Longer Have Access to Influencer Data? | Data of Influencer
How long does a manager access influencer data after the relationship ends? When you are an influencer, and if you establish a relationship with a manager, an agent, or marketing agencies, it’s all grouped into the same thing. It’s somebody attempting to go out, get deals for you, bring them back, negotiate, that type of thing.
At some point, you will, or at least should sign a management contract with that individual, and then it will list how to terminate the contract. At some point, if you’re unhappy with the manager or agent and decide to move on, you’ll have to give them notice per the agreement. Usually, it’s somewhere between 30 to 90 days. And then, at the end of that notice period, the relationship ends, and the influencer is free to go find new management. Then the manager moves on as well.
Can a Manager Still Receive Commission After You Terminate the Contract?
Now, that doesn’t mean that the relationship is completely over with. Almost every management contract will have a clause after the agreement is terminated. The manager will still receive a percentage of commission based upon any deals they bring to the influencer. Think of it this way: let’s say you’re unhappy with your manager, terminate the contract, and the contract ends. Well, the contract is going to stay.
Let’s say you have a sponsorship with a meal planning company. The meal planning company wants to continue the relationship, so that moves forward. However, because that manager brought you that deal, the contract will usually stay for about a year after the contract ends. You will owe them the percentage of calculated commission to your past manager for that year. Let’s say they were receiving 20% of whatever the fee was from the meal planning company. You would still have to pay the manager that 20% for a year after the contract ends.
A Couple of Reasons for a Manager to Do This?
Now, managers do this for a couple of reasons. First, they don’t want to bring a huge deal to an influencer. The influencer signs the deal, cuts ties with the manager, and then avoids having to pay the commission percentage to the manager. If you think of it that way, from the manager’s perspective, that would be bad, right? Like, they would feel taken advantage of if they brought someone a deal and then was cut out of it, and then the influencer didn’t have to pay any commission back to the manager. Now, some deals are structured based on views.
Can the Manager Access the Influencer’s Online Platforms After Terminating Contract?
Usually, an influencer will give the manager full access to their platforms like YouTube, TikTok, and Instagram. And so the manager will know what the data is from the influencer. What’s the reach, the interactions, the views, the duration, all that kind of stuff? Once that relationship ends, the influencer will cut off the manager from viewing that data.
How the Influencer’s Data Should Be Shared After the Contract Is Terminated?
Here’s the tricky part: if there was a clause in the contract that states you still must pay them for a year after the contract ends, and the contract with the meal planning company is based purely on views. Maybe the duration of the views on YouTube, that manager will want access to that data to ensure they’re being paid correctly. And it’s tough to limit someone’s access to that data to one specific video or a series of videos.
You essentially can’t do it that way. So, there must be an agreement that either the social media provider will copy and paste the data to the old manager so that they know they’re getting the correct data. Or a third party will go in, view the data, and then forward it to the manager. Most influencers do not want an old manager to have access to their numbers. I mean, the relationship ended poorly, most likely. And so, the last thing you want to do is have that person still access all your data moving forward.
I find that most influencers and managers miss this entirely and don’t even think about it when they sign a contract. But there has to be some idea of if a deal is in place based purely on the metrics. How is that data going to be shared after the contract is terminated? I mean, that’s something that absolutely can be worked into a management contract. But it’s also something that I find nearly very few managers, agents, and influencers think about before signing the contract.
What Is Exclusive Management of an Influencer? | Influencer Management Issues
Suppose you are an influencer at some point. In that case, you will likely reach out to an agency, a specific agent, a manager, or someone who will facilitate the brand sponsorship opportunities that any influencer can get. And you will ultimately sign a contract as well, which kind of dictates the terms of the relationship between the influencers and the agency. In all those contracts, there will be a clause called exclusive management. And this is going to dictate what the influencer can and can’t do. Exclusive management means that whoever you sign with will be the only party facilitating deals between you and a brand.
So, even if a brand contacted the social media content creator directly, let’s say. Suppose they had an exclusive management contract. Then, there will likely be language that states that even if we had nothing to do with this deal. Suppose someone contacts you for a brand endorsement opportunity. It would help if you referred them to the agency.
Then, the agency would be the ones that undertake the negotiation with the brand sponsor. They would reach an agreement. The agency would present that brand endorsement opportunity to the social media influencer. Additionally, it’s the job of any manager or agency to go out and find brand endorsement deals for the influencer. And once again, they would be the only party that would be allowed to do that. Suppose you had a friend that came to you with a deal or another agent. Suppose you have an exclusive management contract with an agency or an agent. In that case, they will not be able to get compensated for whatever they bring to you. You would be required to refer them to your agency. And then, once again, they would be the ones to facilitate the brand endorsement opportunity.
Influencers Pay After the Agreement Terminates
Now, why is this? Quite simply. If someone manages you, they’ll want to benefit from the commission percentage cost negotiated between you and the brand. 20% is an industry-standard amount. Suppose someone brought you a brand sponsorship opportunity that was 2000 a month. If they got 20% of that, you would get paid every month. Then, the manager would receive 20% of 2000. And then that is how the compensation would occur between the two parties.
There’ll be clauses stating if influencers decide to terminate the management agreement. Then, any sponsors with whom the influencer has had a relationship with the management company still have to pay the commission percentage cost for a period after the contract termination. Most of the time, that’s one year. Let’s say you established a relationship with a meal prep company. And then you decide, you know what, I’m going to move on to a different manager. However, the meal prep company said, ” Hey, even though you’re not with the manager, we still want to associate with you. The contract would likely state, if it’s an exclusive management contract, that even if they are no longer your manager. You still must pay them the 20% for a year after the contract terminates. That’s standard.
Any management company’s biggest fear is bringing a bunch of deals to an influencer. The influencer terminates the contract. Then they avoid paying the 20% to the agency or manager, whoever brought them the deal.
Negotiate the Look Back Period
Now, where influencers can negotiate is the amount of time after the contract ends. That kind of payback percentage cost would last. Then the percentage cost of the agent or manager would be negotiable. Are exclusive management contracts good or bad? Well, for the most part, they’re good. Most influencers are not as savvy as a reputable marketing agency. And influencers have established relationships with companies and have a broad reach. They can generally bring influencers things they wouldn’t know how to bring to themselves or have the contacts to facilitate those deals.
Influencers Must Be Wary of Bad Managers
And then the agencies can also push their people onto the different marketing opportunities and say, hey, look, we have a client, they fit this profile. We think they’d be a great match for your brand. And for the most part, influencers, although they could do those things themselves, it’s much quicker. It establishes their identity and brand faster if they work with a marketing firm, an agent, or a manager. There will be some people who tell influencers, you know, I can do all of these things for you. And the percentage cost may be even more than 20%. Always look to see the track record of this person. Who else have they represented, and even contact the people they’ve represented? That is to determine if they’ve done a good job.
Usually, people who are bad or burn managers can quickly get a bad reputation, which spreads amongst the influencers. You can figure out, alright, this person is just trying to take advantage of the influencers. But always do your due diligence when signing an exclusive management contract because there will be repercussions after the contract ends.
Do Influencers Have Managers? | Need for Management for Influencers
Do influencers utilize managers? Some clear distinctions need to be made between a manager and an agent, an influencer and an actor. An actor generally has both an agent and a manager. Agents in California, where almost all actors are members of the Guild, have a cap on how much the percentage of commission they can take from their clients, which is 10%. In contrast, managers aren’t capped and can take more than that; some do. And in that scenario, the roles and responsibilities are different. With an actor, the agent goes out, negotiates deals, and looks over the contracts.
Do Social Media Influencers Need Management?
Whereas the manager generally is supposed to deal with the day-to-day issues that the actor must deal with. I mean, almost like a life coach in some ways. The lines between the two are blurred with an influencer, and none of the laws apply to any of them at the time of this blog. I find that influencers view a manager and an agent as the same simply because there are no laws dictating the cap on the percentages for them. Whether they have to be a member of an agency, and that’s not to say influencers don’t have agents.
Some of them do. The ones with official agents are generally looking to maybe move into TV, movies, or that type of thing. A manager can do the needed activities if you’re just a standard social media influencer. And so, what are those activities? Usually, when an influencer hires a manager or management company, that management company will go out, look for sponsorship opportunities for the influencer, and bring them back. If the influencer is interested, they’ll negotiate a deal, and a contract will be drawn up.
Management Agent Can Act as an Influencer’s Shield
Managers should go over the contract with influencers. And then just facilitating the business side of things for the influencers. They’re also a good shield. Highly influential influencers can be bombarded with opportunities, and the manager or agent can act as a shield so that they don’t have to deal with that. They don’t have to respond. The manager should handle all those duties. There will be some threshold for an influencer where it would make sense.
The transition into management or agencies, what that is, I can’t tell you. Still, there will be a point where if an influencer is like, I can do this as a career and not just a side opportunity. That’s probably where getting a professional involved makes the most sense. Well, many people think I will do it on my own because I don’t want to pay the commission to the manager. Usually, in the influencer market, it’s around 20% for an agent or manager when there are no laws dictating what they can take.
At least, I find the most successful influencers can separate the creative and business sides. And they should let someone handle the business side, assuming they’re reputable and professional. And then, they can focus solely on what they do best, creating content. Trying to do it all yourself, you’re going to be stretched too thin at some point.
Another Benefit of Having a Reputable Agent
And then one of the other main benefits of a reputable agent or manager is that they will have contacts in the industry that the influencer doesn’t have. For instance, contact with the different brands, knowing where to avoid, and knowing which brands are great to work with. As an influencer, especially at the beginning, you have no idea about that. And so, having a professional who can guide you through that makes a lot of sense.
Importance of Signing a Contract Agreement
Now, they are going to have you sign a contract, which you need to have a contract in place before you start a relationship with a manager or an agent. And then, that contract will dictate the length of the agreement, how to terminate the agreement, what the manager’s pay structure will be, the responsibilities of both parties, and what happens after the contract is terminated. Suppose you don’t have a contract with a manager.
In that case, if it’s just a handshake or a verbal agreement there, I can promise you there will be some disputes down the road. And having a contract that details all the responsibilities of both parties is essential. So, do influencers have managers? Many of them do, and many of the most successful social media influencers do. If you’re going to discuss potential management opportunities, then you need to ask some particular questions. Who else have you worked with? Did you have contracts with them? What is your commission percentage? Do I have to pay you after the contract ends? What brands have you worked with?
These are all things someone should be able to answer if they’re going to be an asset to the influencer and not someone who’s just trying to figure it out. Also, many influencers are, I don’t know if, “concerned” is the right word but are reluctant to pay. Usually, 20% is the going rate for a manager in the influencer industry. They don’t want to pay a manager 20% of their compensation.
Importance of Efficient Manager
But suppose you have a good influencer manager. In that case, that person should bring vastly more than the 20% you’re paying them, as I said before, with knowledge of the brands, the pricing, and that type of thing. Yes, if you’re using someone who’s not good at their job, it could be a total money sink for you and not worth it. But if you hook up with someone who knows what they’re doing, it can skyrocket an influencer’s career.
Not only the sponsorship opportunities but the career management as well. Like you want to transition from this, into this. Do you want to make personal appearances? If you’re an athlete, are there some camps associated with which you could start running? When they’re beginning, there are just a ton of different opportunities that most people don’t understand, and a great influencer manager can assist them with that.
Considerations in Choosing a Manager
You could look online, but if you are going to do that, they should have a client list on their website. And then maybe reach out to those influencers and say, hey, I’m interested in using them as management. What are your thoughts? I do find that some of the websites are not up to date. If you go on there and you’ll see a whole list of people, and then if you contact them, they’re like, no, I don’t work with them anymore. So, it would be best if you were careful as far as that goes. If it’s just a solo person, that’s something to be a little bit concerned about. Like one thing that you want is responsiveness. If you contact your manager and they don’t get back to you for days, that’s not someone you want to work with.
I mean, everyone’s busy, so they can’t get back to you within a minute. But if you text your manager, they better get back to you relatively quickly. An influencer deserves that, just like me as an attorney. If a client contacts me, I can’t sit on it for a week. I get back to them because they have a question that needs to be answered quickly. It’s just an excellent business to do that. So, anyway, those are the avenues to find representation. If you’re an influencer, it makes sense to do it once you hit a certain point, and they can assist your career.
Influencer Management Contract Questions?
Contract Review, Termination Issues, and more!
