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.
Other Blogs of Interest
- Why An Influencer Management Contract Attorney is Always Necessary
- Do Influencers Have Agencies?
- Does an Influencer Need an Agent?
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. An influencer 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 is a dispute, and examples of contract breach. Then obviously, the payment structure between the influencer and the agent.
Percentage Commission for Influencers
Typically, 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 influencer contract will also include what happens after the it 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.
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 content 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.
You Can Always Negotiate Terms with an Agency
Usually, there is a dispute if it’s not written in the influencer contract. 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 influencers are absolutely going to want to bar their past agents from getting into their current numbers.
You can always negotiate any term in an influencer contract. There’s nothing that’s ironclad, especially for an agency contract. Influencers have 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 contract.
Getting an Influencer Marketing Agency
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 someone going out on behalf of the influence, looking for brand sponsorship or collaboration opportunities. Management will do things for you:
- They will bring the brand deal to the influencer
- Negotiate the terms of the compensation
- Terms of the relationship
- How many content/ posts must an influencer do for a brand
- How long does the spot if doing a YouTube video have to be, and the details of the situation
- Essentially acting as a shield between the influencer and the sponsorship company
Now, what’s the best way to look for an agent if an influencer is so inclined? Well, as someone who has represented athletes in the past, I always find the best way to find an agent is through your friends. If you’re an influencer, you likely have relationships with other influencers. It is best to reach out to them and see who they may have used but terminated the relationship with in the past. That’s the best way to do it because, as an influencer, you’ll have firsthand knowledge of how the person operates. It has to be someone you trust if they’re going to give you advice on who a potential agent is. Influencers could Google around on the internet. There certainly are some larger agencies.
Avenues on Finding an Agent
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 an Influencer 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 rates for an Instagram story, a YouTube video, or a personal appearance. You’ll not know these things if you’ve never been through this before. That will also know when to push back:
- How much is the average expectation for the influencer
- How many appearances must they make
- What are the industry norms are
It Is Recommended to Look for an Experienced Agent
Not to say it’s impossible for someone who’s never done it before, but it isn’t easy. And it’s very likely the influencer will be leaving money on the table when going with somebody who has no experience marketing an influencer. 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. Someone who has experience doing it and then has a roster of clients they can show you.
Many agents will start in an agency, 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 contracting. Still, an agent for an influencer does not have to be an attorney. I would say at least half of them are not. Now, how much does an influencer have to pay this person? That’s always a big question. It’s based upon a percentage cost of the commission. Whatever deals this person brings you and negotiates the price, they will get a percentage cost of that.
Influencer Agencies Charge a Percentage
Very rarely are you going to find any agent influencer relationship where it’s a flat fee? Most of the time, the percentage cost 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. As an Influencer, you must do a little math equation in your mind. Alright, is the value this agent will bring me worth more than the 20% of all my deals I will have to give them? Because most of these agents are going to have what’s called an exclusive management agreement with the influencer.
That means the influencer cannot use anyone else for any deal-making. And not only that, if an influencer has a friend, family member, agent, or another influencer they know. Suppose they have anyone bring them deals independently of their current agent. However, 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 the Influencer.
Agents’ Way of Securing Their Effort
Most agents fear that they will bring a great brand opportunity to an influencer. The influencer terminates the agreement and then tries to get out of having to pay the agent. That’s why a contract is extremely important. And normally, in that scenario, most influencer management contracts will have some provision that states that the influencer will owe their agent whatever state of percentage cost is. That’s usually for a year after the agreement terminates for any deals negotiated on behalf of the influencer. To wrap up, talk to your friends, and see who they’ve used. Suppose you’ll Google. I would go for news articles and see some of your favorite influencers. 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 influencer career, no matter your level.
What Is Exclusive Management of an Influencer | Influencer Management Issues?
Suppose you’re 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 dictates the terms of the relationship between the influencer 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 influencer 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 sponsoring brands. They would reach an agreement. The agency would present that brand endorsement opportunity to the influencer. Additionally, it’s the job of any manager or agency to market the influencer. 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 brands. 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 the influencer decides 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 brands. 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.
What Is a Standard Influencer Management Commission? | Influencer Marketing
What is the standard percentage cost of commission that a social media influencer management company will take? Suppose there are influencers, and they get big enough. Then, influencers may want to reach out and find some assistance in securing more sponsorship opportunities. And influencers are supposed to find an individual agent, an agency, a manager, or a marketing management agency. It’s all the same thing. Their role is to go out and bring the influencers deals that they might be interested in. And then, they will get a percentage cost of the compensation paid to the influencer for the sponsorship opportunity. Before the management company starts looking for potential deals for the influencer, they will sign an exclusive management contract.
And then that contract will dictate the terms of their relationship:
- How long does it last
- How to terminate it
- What are the expectations of the influencer?
- What are the expectations of the management company?
- How much or what percentage cost of the influencer’s compensation goes as commission to the marketing agency? A standard amount would be around 20%.
Choosing Between Agents
Now, everything is negotiable. There is certainly wiggle room to bring that down for influencers. However, like in any industry, the better someone is at their job, the more they can charge. And so, if you find a rockstar agent, they’re certain they can bring influencers from this level to this level. Still, they’ll charge 2% more, 5% more, or whatever percentage cost than somebody else. Influencers have to decide and do a math equation. Influencers could go with someone who may not have as much experience for 10% or go with someone experienced for 25%. Will that 15% difference be worth it all the better? Higher-paying, higher volume of opportunities that a more experienced agent may bring?
I can’t answer that question. Influencers have to make that determination on their own. But those are the standard commission percentages cost.
Terms After Contract Termination
One thing to think about is any management contract will state what happens after the contract ends. Let’s say the influencers, for whatever reason, decide to move on from the manager. They’ll give notice, and the contract will state how many influencers must give notice. Somewhere between 30 to 120 days is standard. Depending upon the language, influencers would still have to work with the management company for that period.
The important part is a clause that states that if the influencers leave, they’ll still owe a commission percentage cost to the management company. That is for a period after the contract ends. So, for any of the sponsors they brought to the influencer, let’s say the management company brought a meal prep company interested in working with the influencer. Then they’ve been working together for a couple of years. Well, after you terminate the contract with the management agency, you don’t just automatically get to keep all of the money from that meal prep company. Suppose they wanted to continue working with you. In that case, you’d have to pay 20% back to the old management company, usually for one year after the contract termination. It is simply a way for a management company to ensure they don’t bring deals to an influencer.
Influencer Agreements After the Management Contract Ends
And then influences terminate the contract, takes those deals, and avoids paying the 20% to the management company. That’s an industry-standard restriction after a contract ends. Now, influencers could negotiate the length of the restriction. The percentage cost that the management company will get during that period or limiting the look back from the influencer. Most contracts will state any deal they brought you during the relationship between the influencer and the management company. So, if it’s been a five-year relationship and they brought you a deal in year one, you haven’t worked with that brand for four years. Then they return to you after you terminate the contract within that year. Theoretically, the management company would still be owed 20%. So, you want to limit that look-back period. One year is what I would consider a reasonable amount. Someone might consider it longer than that.
But it’s the role of anyone advising you to tell what would be advantageous to you. And I would say limit to one year, looking back, and then one year going forward, that would be considered a reasonable amount. You could also reduce the percentage cost the management company receives, maybe quarterly. Hence, every three months, go from 20 to 15 to 10 to 5. And then, after that one year, it’s over with. So, 20% is an industry-standard amount. It could be more or less, but that’s about the average.
Social Media Influencer Manager
Social media has become an essential part of our lives. With a good percentage of the world population on social media. It has become a primary marketing channel. Establishing a social media marketing strategy to grow your reach and increase conversions is critical. Many successful brands include collaborating with social media influencers in their strategy. Influencers are trusted experts in their niches and can influence their followers’ buying patterns.
Influencer marketing is a lucrative industry projected to grow to $16.4 billion in 2022. As the industry grows, so does the number of influencers and service providers supporting it. Influencer marketing-related services grew by 26% in 2021. Social media influencer managers are among the essential service providers in the industry.
Why Do Social Media Influencers Need Managers?
Social media influencers need managers to handle the business aspect of their careers as they focus on building their brands. Influencers with managers achieve more growth and success in their jobs than those without managers. Influencers can take advantage of their manager’s network and industry experience to get ahead of the pack.
Social media influencer managers guide clients through sourcing, negotiations, and signing contracts. They know how much per brand can pay, so they ensure brands do not exploit or shortchange their influencer’s clients. Managers understand contract details and will see what you are getting into – what brands expect and how they will compensate the influencer.
Having a manager is essential to expanding your career. Influencer managers have connections with different industry leaders. Your manager will put you in touch with other brands, presenting opportunities that influencers without managers don’t get.
How Do I Get a Social Media Influencer Manager?
You can contact an influencer management agency or the influencer manager you want to work with directly. Agencies and influencer managers also reach out to social media influencers. They think it would be a quality addition to their client list.
It is not just enough to have a manager for your influencer career. Influencers need to hire a manager who will improve and streamline their career. When looking for a manager, influencers must package their craft professionally. That is because managers sift through so many applications to decide who is worth representing. To stand out, you must create unique and valuable content.
Every agency or manager focuses on a particular industry. An influencer has to find an agency that aligns with his industry or the direction you want to take with his career. The influencer can consult other influencers in your industry to recommend managers so that you can spend less time landing your best fit.
You must consider several factors before signing with a management agency or manager:
- How many influencers in your niche do they represent?
- Have the influencers in their roster seen more career growth and success since signing with them?
- What is the agency’s strategy to help you maximize your social media reach?
- What are their short- and long-term goals to help build your brand?
- How much will they take from your influencer revenue?
Do Influencers Pay Their Management?
Influencers must pay for management services as stipulated in their engagement contract. Typically, influencers do not pay their management out of their pocket. Influencer managers take a cut out of the influencer’s earnings. The average range is from 10% to 20%, depending on the scope of services. The manager’s salary may include a portion of each of the following:
- AdSense revenue
- Brand campaigns
- Affiliate link commissions
- Product collabs
- Merchandise revenue
How Much Does an Influencer Manager Charge?
On average, influencer average management charge ranges from 10% to 20% of the brand deals. Some influencer managers may ask for a monthly retainer if the contract involves helping you with content creation and brand-building activities. Another option involves managers who will negotiate for a flat fee structure for a specific project, like launching a product or something.
Other factors that managers consider when pricing influencer management services include:
- The industry – influencers in the beauty industry are easier to find and manage than those in tech. Therefore, managers typically charge the latter more.
- The extent of management – the time you involve your manager will impact their managing charge. For example, do their services include campaign reports? Do they charge a software fee for the same or charge other services?
Influencer management charge also depends on who found the deal and the deal size. For example, your manager would charge less to handle a deal when clients reach out to you than when they bring you the deal. This setup is ideal because you only pay for what your manager does. If they bring projects, you should pay more because you wouldn’t have gotten the job without their intervention.
When Should a Social Media Influencer Get a Manager?
There is no rule of thumb or a certain number of social media followers at which you should get a manager. It is ideal to hire a manager when you start getting a continuous flow of deals from brands. At this point, it is usually overwhelming to balance negotiating deals, maintaining the quality of your content, and meeting deadlines.
Sometimes an influencer may need to hire an assistant or add a new member to your team and delegate some work. However, social media influencers often need a manager or a lawyer to negotiate brand deals on their behalf and read through their contracts. Ideally, here are the signs it’s time to hire a manager:
- An influencer is getting more than one deal a week
- When the influencer starts spending less time creating content or the quality of your content depreciates
- When an influencer needs help with the financial management of legal matters
Do Influencer Managers Have Contracts?
Yes, they have Influencer Management Contracts – a legal document detailing the terms of engagement between the manager or agency and the influencer. The influencing industry does not have clear-cut rules and regulations. Influencer management contracts are critical and outline the rules and regulations each party must follow during and after the contract period.
The contract outlines the essential elements of the engagement, including:
- The agreement’s start date
- The rights and responsibilities of each party
- The length of the contract
- The manager’s fee or commission percentage
- Work-for-hire language
- The use rights of the recordings
- Alternative dispute resolution
- Contract termination
Find Out More About Social Media Influencer Managers.
Many social media influencers need professional help with legal contracts and financial management. Many influencing agreements today must follow the FTC Endorsement Guidelines. Influencers need managers to negotiate deals, review their contracts and offer financial counsel on issues like taxes.
Contact Chelle Law if you have any questions about influencer management or want us to review your influencer management contract.
How Can an Influencer Terminate a Management Contract? | Influencer Agreement
How can a social media influencer terminate a management contract? Most influencers will have either an agent, a manager, or maybe even a marketing agency working for them. And then influencers should have a contract with them. Sometimes, it might just not work out. The influencer is interested in terminating the agreement and then determining the implications if they terminate it. In any contract, a section states how you can terminate the agreement, normally called termination. And there are generally four common ways influencers can terminate a contract.
Four Common Ways for Termination of Contract
As stated in the Term of the Agreement
One, an influencer management contract is going to have a term. And the term means how long it lasts. Somewhere between one and five years is the average amount for an influencer management contract. And then, it will state after that initial term if it automatically renews or not. Many contracts will state that if neither party terminates the agreement, it’ll automatically renew for successive one-year terms. That just kind of goes on forever until terminated. Some contracts don’t have that language, and it’s just a fixed term, meaning it’s one year, and that’s it. And in that scenario, if your contract ended after a year, neither party renewed it, it’s over. The contract gets terminated.
The second-way influencers can terminate their agreement through mutual agreement. Suppose either party said this isn’t working out for whatever reason. Regardless of the contract, I’m interested in washing our hands off the situation and moving on. That would be another way you could terminate the agreement.
The third-way influencers can terminate their agreement would be with-cause. There are things that both parties must do during the term of a contract. And suppose one of those parties is breaching the contract. They’re not fulfilling the terms of the agreement. Let’s say you’re an influencer and your agency or manager stopped providing or reaching out to find deals. They’re just not doing the job stated on their contract. You would find them in breach of contract. In most well-written contracts, it’s going to state how you can provide notice of the breach. And then, typically, there would be a cure period. If the manager were in breach of contract, you would give them a letter stating what you’re doing to breach the contract. Then, there’d be a standard cure period.
A cure period would be when the manager or agency could fix whatever the breach is. And then the influencer could not terminate the contract with-cause. That’s the third way, with-cause termination.
And then the last and most common way influencers can terminate their agreement is without-cause termination. Without-cause termination means either party can terminate the agreement at any time or with a certain amount of notice to the other party. In most influencer management contracts, it will be somewhere between 30 to 120 days’ notice. And what that would mean is suppose influencers were just unhappy with the agency, influencers would give them the, let’s say it’s, 60-day notice. And then both parties would kind of work through those last 60 days. And then, in the end of that, the influencers could move on and find new management. Now, there’s usually one kind of, I guess, a thing that sticks with the management contract.
Influencer Contract Termination Notice
And that would be if you had any sponsoring companies while working for the management company. If they were worth what you were paying them, they should have plenty of sponsoring companies for you. There will usually be a clause in the contract that states that you can’t work with that sponsoring company for a period after the contract ends. For instance, if a manager brought you a deal for a meal prep company and they said, alright, you must give one 90-second spot once a month for every YouTube video you do. Well, you couldn’t go back to that same company the day after the contract terminated and tell them, hey, I want you to pay me directly from now on. And the reason why most management companies do that is they don’t want to bring an influencer deal.
And then most management companies get around 20% commission. So, whatever they bring the influencer, they will get 20% of that. They don’t want to bring them deals, have the influencer terminate the contract, and then circumvent having to pay the management charge or commission. One year is a normal amount for that. Now, indeed, that’s negotiable. I’ve seen some that I would consider completely unreasonable are four or five years in length, and that’s not something any influencer should agree to. So, that’s how an influencer can terminate a management contract.
Influencer Management Contract Questions?
Contract Review, Termination Issues, and more!