Every business or startup needs an internet presence to be successful these days.

The traditional method of marketing does not work anymore, and this is the era of “digital marketing’.

Particularly, the use of influencers has become a lot more common now.

These internet influencers become the face of the startups for their marketing strategies.

For me, influencers are those who are regarded as trustworthy authorities in their niche.

And because of that, whatever the influencer promotes, their followers buy.

But a lot of people working with such influencers still do it on an oral arrangement.

Or an arrangement based on email or text exchange.

And as with any engagement without the use of a contract, it creates a problem.

A problem not just for the brand, but also the influencer.

That's why it's important to focus on 4 Clauses in your Contracts.

(1) Services and Deliverables

The agreement should be clear about what services are expected from the influencer.

And also on what is expected at the end of the campaign itself - the deliverables.

What posts do you expect from them?

Are there any specific hashtags?

Is there any quantity of reels they need to post?

Specify everything.

And don't forget the timeline either.

When does the work Start and on which date will it Finish?

Make sure everything is highlighted in the Contract.

(2) Compensation or Payment Terms

What and how will the Influencer be paid?

Cash? Freebies? Exclusive invites to an event?

Make sure everything is again highlighted.

(3) Intellectual Property (Copyrights)

This one is the tricky one.

Usually, the influencer who makes the content owns it.

But there are cases when the brand wants to own the copyright.

Or at least have joint ownership of the content.

The agreement should state who has the right to use the content and how it can be used.

This is probably the most common area of dispute.

And more often than not this portion is written ambiguously which creates problems.

(4) Confidentiality and Exclusivity

Sometimes, the brand shares some confidential information with the influencer to enable him/her to carry out the work.

For example, when the influencer is to be an ambassador for a new product launch.

Therefore, a confidentiality clause would ensure that private information cannot be leveraged against other parties.

Also, an exclusivity clause would prevent an influencer from promoting product rivals.

This would help maintain the validity of the campaign itself.

Because if the influencer promotes too many competing products, the whole image of your brand could be affected.

That's it!

Besides the above, there are also legal obligations that brands and influencers need to follow.

For example, the FTC in the USA and other respective regulatory bodies in other countries are tightening their grip over Influencer Marketing.

This is mainly because of non-compliance with disclosure requirements and endorsement rules.

So learn everything and then proceed carefully!

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