Influencer agreements – key considerations for businesses

There is no denying that there has been a significant rise in ‘Influencers’ on a global scale over the past few years.

According to market research firm IMARC Group, in 2024, the value of the UK Influencer marketing industry reached $2.36 Billion. By 2033, IMARC expects the value of the market to reach $24.15 Billion.

With many businesses considering using the services of an Influencer to promote their brand, what key considerations should be taken into account when entering into Influencer Agreements?

• Due diligence. Before deciding to enter into an Agreement with an Influencer, you should conduct due diligence into the Influencer and their social media platforms. Does the Influencer align with your business’s brand? Do they have a suitable level of engagement on their posts? Are their followers part of your target audience? Does the Influencer already work with a competitor in your sector?
• What services do you want the Influencer to perform? It is important to be specific about these. For example, is there a set number of posts that the Influencer should make, and should these be made within a certain timeframe? What platform(s) should social media posts be made on? Does your business have a social media policy in place that any posts by the Influencer should adhere to?
• The terms relating to payment for the Influencer’s services should also be set out clearly. Is payment to be linked to the engagement/impressions on the Influencer’s social media posts? Is payment to be made monthly or a one-off basis for a particular campaign? Are you providing shares in a company to the Influencer in consideration for their services?
• Intellectual Property. The Agreement should specify which party owns the Intellectual Property created in the course of the provision of the services, such as any photographs, videos and/or written posts made.
• Warranties. You may wish to include certain warranties to be provided by the Influencer within the Agreement. This would include, for example, a warranty that there are no third-party restrictions in place that would prevent the Influencer from entering into the proposed Agreement.
• Breaches/Disputes. Whilst it is hoped that disputes do not arise during the term of the Agreement, it is important to include clear provisions for resolving these as a precaution. Should arbitration be used in the case of a dispute? Will a breach by the Influencer of their obligations under the Agreement entitle the business to terminate the Agreement?
• Restrictions. Consideration should be given as to whether any restrictions should be placed on the Influencer. For example, should there be a non-compete restriction for the duration of the Agreement, or for a set period of time following termination of the Agreement?
• Legislation. Consideration should be given to the statutory restrictions that may apply to the advertisement of any product to be advertised or promoted by the Influencer (for example, where this relates to alcohol or certain foods). In addition, all posts should meet the requirements of any relevant marketing legislation and codes, such as the CAP Code.
• Details as to the circumstances under which the Agreement will come to an end, and any obligations of the parties in light of termination, should be included within the Agreement. Should the Agreement be in place for a set period of time? Should confidentiality provisions remain in place notwithstanding the termination? Should any social media posts be removed upon termination?

Every Agreement is unique, and so there may be additional factors that require to taken into consideration depending on the specific arrangement to be made and the nature of your sector.

If you are a business, marketing agency or Influencer looking for further information or assistance with Influencer Agreements, please contact Erin Findlay.