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Brands and influencers work together every day to shape consumer choices. Whether you are a business looking to boost visibility or a creator seeking fair compensation, putting clear agreements in place is the only way to protect both sides. Influencer and content creator contracts outline the rules of the partnership, including what is created, how it will be shared, and who owns the rights to the work.
FTC Disclosure Requirements
One of the most important areas in influencer agreements is compliance with the Federal Trade Commission (FTC) guidelines. These rules require influencers to disclose when a post, video, or story is sponsored.
Common contract provisions include:
- Disclosure format: Creators must use clear labels such as “#ad” or “Sponsored.” FTC guidelines further state that disclosure should match the format of the content; for example, a disclaimer should appear in a sponsored video and not just the description of the video.
- Placement: Disclosures must be easy to see, not hidden in hashtags or at the end of long captions.
- Responsibility: Both the brand and the influencer may be held liable for failing to comply.
An agreement may include language such as:
“Influencer agrees to include a clear and conspicuous disclosure of sponsorship in all posts as required by the FTC and platform policies.”
Payment Terms
Payment is often one of the most negotiated aspects of these contracts. Influencers may be compensated through flat fees, commission-based payments, or free products. Businesses should spell out:
- Payment method and schedule (lump sum, installments, or upon delivery of content).
- Performance-based bonuses tied to engagement or conversions.
- Reimbursement policies for travel, equipment, or production costs.
For example, a clause may read:
“Influencer will receive $1,500 per campaign post, payable within 30 days of publication.”
Content Ownership
Ownership rights can be complex in influencer marketing. Agreements should clarify whether the influencer retains copyright to their content or grants the brand usage rights.
- Exclusive ownership: The brand owns the content outright once it is created.
- License to use: The influencer keeps ownership but grants the brand permission to use it for marketing.
- Limitations: Usage may be restricted to certain platforms or timeframes.
A sample clause might say:
“Influencer grants Brand a non-exclusive license to use the content on Brand’s social media channels and website for a period of 12 months.”
Exclusivity Clauses
Brands often want assurance that influencers will not promote the products or services of competitors at the same time. Exclusivity clauses prevent creators from endorsing competing products within a set timeframe.
When drafting or reviewing these terms, you may consider:
- Scope of exclusivity (all competing brands vs. just direct competitors).
- Duration (during the campaign or for a period afterward).
- Fair compensation if exclusivity limits the influencer’s opportunities.
For example:
“Influencer agrees not to endorse competing skincare brands for 90 days following the campaign.”
Performance Metrics
Contracts may include performance benchmarks tied to engagement or reach. This helps to ensure accountability for the influencer and helps brands measure return on investment.
Metrics may include:
- Number of posts, stories, or videos required.
- Expected engagement (likes, comments, shares).
- Reporting obligations, such as providing analytics screenshots.
A typical provision might say:
“Influencer will provide post-campaign analytics, including impressions and click-through rates, within 14 days of content publication.”
Common Negotiation Points
When reviewing influencer and content creator agreements, both sides should be prepared to discuss:
- Revisions and creative control: How much editing can the brand request?
- Termination rights: Under what circumstances can either party end the agreement?
- Indemnification: Who is responsible if legal claims arise from the content?
- Force majeure: What happens if events beyond control prevent performance?
These points often set the tone for a smooth or strained working relationship, making careful negotiation important.
Protecting Your Interests in Influencer Contracts
Clear agreements benefit both brands and creators by reducing misunderstandings and providing a framework for collaboration. At the Kumar Law Firm PLLC, we help businesses, influencers, and content creators draft and negotiate contracts that safeguard their rights and set expectations for successful partnerships.
If you are entering into or reviewing an influencer agreement, contact us today to discuss how we can help protect your interests and support your growth.