Influencer Contracts: How the world's most recognizable brands drive ROI faster

Contracts are the last thing that come to mind when you see an influencer on TikTok or YouTube, but for every influencer you see, there is usually a contract that drives the brand alignment, scope, and value of the engagement.

As social media platforms have become more popular especially among the Gen Z demographic, influencers have become major drivers of revenue for top brands by providing a voice of authenticity and social proof for consumers.

Ironclad’s Head of Community Development and resident influencer Alex Su sat down with influencer marketing experts — Maybelline’s Madeline Chambers and the Texas Rangers’ Hannah Wing — and L’Oréal’s Associate General Counsel Charles Hurr to learn how they are winning partnerships with talent quickly — and with as little friction as possible — with Ironclad CLM.

Here are some protips from our panelists:

• Ensure that your influencers are complying with FTC guidelines. Content creators must clearly disclose whether the content is paid by a brand; this can be accomplished by using hashtags like #ad, #paid, or #sponsored.
• Approach the influencer with a “partner” mindset, so that both parties mutually benefit from the relationship.
• Beware of how creators use music! Brands don’t necessarily have rights to TikTok and Instagram music libraries and may be liable if influencers use them for brand-contracted content. Ensure creators are using brand-approved, -owned, or royalty-free music in their posts.
• Specify brand guidelines so that the creator produces content that is aligned with your brand. Bake in a content review process into your contract so that you can ensure that the content is something your brand is proud of and can leverage beyond one platform. That way you can avoid explicit or inappropriate content, claims, or promoting a competitor.
• Consider baking in an exclusivity clause for an X-number of days. This helps preserve the authenticity of the influencer and puts your brand in the spotlight.
• Understand the role of indemnification in your contracts and make sure influencers and internal business stakeholders understand what it means.
• Look to your Legal team as a friend who can help you with blindspots. Conversely, our experts encouraged corporate lawyers to connect and work collaboratively with their marketing and brand teams to risk-proof their influencer contracts upstream.
• Do your research and engage with influencer marketing content firsthand. The more you understand what the output is and how it impacts your company, the better you can protect it!