This is a simulated legal consultation between California licensed attorney, Suzanne Natbony, and CEO of ChannelMeter, Eugene Lee. Suzanne and Eugene discuss what to expect and some precautions to consider when attempting to work with or be an influencer. You can also find an influencer agreement for sale on LawTake.com: https://www.lawtake.com/index.php/inf.... LawTake is a website that aggregates legal content to help people with their legal issues.
When drafting influencer agreements, the main goals should be to help clients avoid costly litigation, but also to negotiate with the other party to obtain the most favorable legal terms possible for the client. A successful influencer agreement will, at the very least, help the parties:
- understand what they have to do,
- be aware of any deadlines, and
- understand payment terms
When it comes to helping a business that is looking to start an influencer marketing campaign, the brand must be protected. It is important to make businesses aware of the importance of:
- protecting their investment in the influencer, and
- protecting their intellectual property.
Added services might include assisting the client with vetting and conducting due diligence on the potential influencer to ensure that the influencer will be able to provide the social media reach that the business is looking for. Furthermore, it is important for the business to know how to draft a structured payment system to pay for the performance by the influencer.
Some important terms that need to be brought to the attention of both parties might include
- Who are the parties to the agreement?
- In most cases this will be the influencer and the business, make it clear to the influencer that this is a relationship with a corporate entity. Any third parties involved need to be discussed as well.
- What is the purpose of the agreement?
- Make sure your clients understand why they are being paid or paying for the service offered. The performance is the publication of a social media post, but the reason is most likely to increase consumer awareness of a product or service.
- What are the services that need to be provided by one or both parties?
- Make sure both parties understand exactly what they need to do to fulfill their obligations under the contract.
- What is the timeline for completion?
- Make both parties aware of deadlines and the consequences of missing deadlines.
- What are the fees for the services?
- Make sure it is absolutely clear what each party will receive in return for their work.
- What are the terms for termination?
- How can each party extract themselves from the agreement?
- What is considered breach or default?
- Make sure the parties are aware of any actions that might result in a breach of contract, particularly if these might not be obvious to the average lay person.
- What intellectual property is involved?
- A limited use license will likely need to be included.
Keep in mind that a lawyer’s job in drafting an influencer agreement, as with any agreement is to protect the interests of the client and to facilitate the client getting what they want out of the deal, without killing the deal before it has even begun. It is a delicate balance of negotiating to get the best terms for your client, while keeping all parties to the contract happy, and most importantly, aware of their obligations – a win-win situation.
- Suzanne Natbony is a third-generation lawyer, licensed in California, and practices in the areas of business, entertainment and healthcare law. She has a broad range of experience that runs from contract drafting to resolving disputes, dealing with almost all of the legal issues that businesses encounter. Her focus is helping clients grow their business, while mitigating legal risks and issues. She is partner of the international law firm, Aliant LLP, General Counsel of Beverly Hills Rejuvenation Center, a multistate franchising medical spa, with headquarters in Los Angeles, and CEO of two startup companies, LawTake and Think Do It. As cofounder of LawTake, she created many legal documents and videos on the website. If you’d like to learn more, visit: LawTake.com, Linkedin.com/in/suzanneraina and SuzanneNatbony.com.