Five Mistakes to Avoid when Negotiating Influencer Contracts

It's no secret that influencer-created content has grown to be a fundamental part of marketing. Successful campaigns use a wide array of tactics to build brand awareness and content creators offer a valuable communication channel between brands and consumers. When it comes to the influencer marketing industry, understanding the contract negotiation process and how to best create long-term relationships is highly important. Having negotiated influencer contracts on both the brand and creator side, we understand the challenges of crafting a clear and protective contract and are here to share five common mistakes we’ve witnessed and how to best avoid them. 

1. Signing Off On Unclear Deliverables

Before signing a contract, the content creator must be very clear on the brand’s campaign goal, expectations of the partnership, required deliverables and any other details that might drive their content. Similar to businesses, social media influencers adhere to their own personal brand and generate content within those standards. If key communication points or partnership requirements are not outlined in the written agreement, it can lead to controversy or disappointment down the line. 

One of the first steps influencers should take when reviewing a contract is to make sure they fully understand and are aligned to the partnership expectations. If anything is unclear, the brand should ratify the contract to be more specific before the creator signs off. 

2. Leaving Money on the Table 

Contract negotiation skills come most into play when discussing and agreeing on a budget. Brands will rarely, if ever, present their full influencer marketing budget on the first conversation, and creators often settle for earning less than they should. The most strategic influencers update their rate sheet based on the specific deal at hand by analyzing factors such as partnership requirements, brand fit and contract terms. Creating a customizable media kit and rate sheet is the best practice to feel out brands and effectively negotiate the details of a paid partnership. 

For example, a smaller brand may not be able to pay an influencer as much as a larger brand, but if their product would appeal to the creator’s following and forge a relationship that could lead to more opportunities in the future, the deal is worth pursuing. 

This part of the negotiation process is when an influencer management agency can be highly effective in strategically discussing agreements and adjusting rates to get the best deal. 

3. Misaligned Partnerships

Strategy is a highly important element when negotiating contracts, as a creator’s audience can make or break an influencer marketing campaign. In many cases the results of a campaign are reliant on finding the right influencer with a relevant following—not finding the influencer with the largest following. Not every brand will be a good fit for the influencer's audience, and not every influencer will have the brand's target audience. It’s key that both parties understand this when negotiating a contract to ensure the partnership is mutually beneficial.

4. Over-Agreeing to Content Usage 

Creating high-quality content is hard work and influencers should avoid over-granting a brand’s access to their deliverables in contract negotiations. Here at Serendipity & Co., we feel strongly that influencers should always own their own content and should never fully sign away their rights in any agreement. 

Ensuring that there is a clear usage rights section in a contract is an effective way for content creators to protect themselves. In addition, it's important to specify a time limit a brand can use an influencer's content and in which capacity. If these conditions are not outlined in the contract, the content is fair game forever, which makes this a highly important part of the process.

5. Not Reading the Contract

Actually reading the contract may seem like the most obvious step when negotiating an agreement, but many influencers fall victim to skimming or skipping over sections with important information. Reviewing and negotiating multiple legal documents that all appear to fit the industry standard, especially when influencers are conducting their own negotiations, can begin to feel like a chore. Although tedious, closely reading every word of the contract is the most important step to take before signing. 

Once a contract is signed, the influencer is locked into the conditions expressed on the contract. The most important thing is to do your due diligence by looking at small statements about exclusivity, contract renewal and more that can easily hide in the contract terms and conditions. When in doubt, it's a good idea to get an influencer agency or legal counsel involved to review the written agreement.

When negotiating a contract, the end goal is to produce a signed agreement that protects and is mutually beneficial to both the brand and the content creator. Creating a solid and clear contract is in the best interest of both parties to eliminate confusion and disagreements down the line while ensuring the partnership is strong and effective.

We hope these five common mistakes will help you be more diligent when negotiating contracts!