What to consider when entering an Influencer's Contract

This is the day and age where our social media has been taken over by Influencers. As an Influencer, you will be approached by a sponsor or a business partner that sees your content and potential and wants to work with you. But what are the first steps? What should you take into consideration? Be it law, health and fitness, product placement or entertainment all Influencers should take the below list into consideration before signing a contract. 

The Who

As with many contracts, when entering and signing a contract have a clear understanding of whom the parties you are entering into the contract with. It is essential to enter the contract with the correct corporate entity, since they are the ones paying you.

 Is this an exclusive contract?

Clarify and understand if the company does not want you in collaboration with their competitors. Clarify if exclusivity is involved because the contract can be terminated if exclusivity is violated. 

Is there a Moral Clause?

Brands can try to breach contact, with permission. This can happen if an Influencer is found to be behaving or acting in a manner that the company finds to be negative on their look or brand. 

Who has the right to the licenses?

The Influencer is typically the owner of the content, this content needs to be clarified if the third party can reproduce, copy or publish content? Also, if the third party can use the Influencers name, image and likeness to promote goods and services. 

Clarify standards and repercussions if these standards are broken ahead of time. 

The What

What are the agreed services and post requirements? To determine this, get as many specifications in this area as possible. In all cases avoid ambiguity which can cause issues with payment and could make specific clauses in the contract null and void. Be sure to look at the FTC's (Federal Trade Commission) disclosure requirements and relevant consumer privacy laws. Lastly, make sure to understand what is being asked in the contract.

• How many posts? Stories? Reels?
• Which Platforms?
• What is the timeline?
• Will these be edited before posting?
• How much creative control do you or the third party have?

These are just a few things to consider. 

The How

How will you get paid? Will it be weekly? Monthly? Is it determined by views? By clicks? By subscriptions? Will your payment be wired? Check? PayPal? Venmo? Zelle? etc.

The When

What happens if the contract is breached by you or the company? 

All language should be clear, example if a post is not made between 6-8am can you cure your breach with a notice? If so, how long is the cure? If the company does not pay in time, is the other party owed interest in their payment?

The Why

Why even bother with this article or with contracts for that matter? Parties do not enter a contract expecting a dispute. If there is a dispute, having a contract that lays out the expectations prior to signing it and protects you and your business. Having us at Okunade, LLP walk WITH you as you consider a contract, negotiate a contract or sign a contract will not only save you time and money at the beginning but also in the long run. 

This information is not specifically for Influencers but any business person that is approached with a contract. 

**Disclaimer- the content on this post is for informational purposes only**