3 Things for Influencers to Understand Before Signing Brand Contracts

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If you’re an influencer you’ve already signed brand deals. But, did you read the contract and understand it before signing? Before you sign anything when it comes to your influencer career, it’s imperative that you read and understand the contract in order to maintain your rights, ensure payment, and have a strong working knowledge to protect yourself and your business.

Terms of the Contract

When you are considering signing with a brand, even if you think you understand the contract, you have the opportunity to call a lawyer. This is a good idea if you’re getting multiple contracts, are signing with an agency, or are working for large sums of money. 

What does the contract actually say?

If you’re not familiar with contracts, it’s a wise idea to have an entertainment/influencer lawyer take a look at the contract and tell you things that might work against you or in your favor when dealing with this brand. Not all areas of the law are the same and a lawyer who works in the influencer space will have more knowledge about the industry standards and norms.

What’s your relationship to the brand? 

There’s usually a section that outlines the relationship of the parties. Usually it’s a form of an independent contractor relationship, which means you get no benefits or compensation beyond the one-time payment. However, those can change depending on the language in the contract. Try to find a section that details the nature of your relationship so you know how to proceed in your future dealings with that company.

Contracts have sneaky things put into them all the time, and especially when large brands with massive legal departments draft contracts for collaborations. The resource imbalance between the company and you is massive, and at least getting a lawyer to read the contract lessens that imbalance. You should at least have some assurance that you aren’t getting into a contract that signs away more than you thought.

How Trademarks Work

As an influencer, you are a brand and a business. You use your style and personality to sell products as a business, and your brand should be protected as such. Any brand should take the necessary precautions to protect their intellectual property, starting with their name/social media presence.

If you haven’t already, consider trademarking your name or social media handle before you enter into the contract. That way, you have an even playing field regarding the intellectual property being granted between you and the brand. 

Trademarks, while potentially annoying to deal with for the few months it takes to get them, are well worth it in the long run in terms of protecting your business and your brand.

FTC Guidelines

If you are an influencer or creator, it is vital that you educate yourself about FTC guidelines. Whenever you agree to sponsor a product or affiliate with a brand, you must properly disclose your partnerships.

Commission guidelines outline how you approach talking about the sponsorships or paid brand deals. The FTC requires that any endorsements, either paid or compensated in any form that isn’t purely organic, must disclose the nature of the paid relationship to your viewers. 

You have probably seen the hashtags on social media posts that say #ad, #advertisement, #sponsored, and the banners plastered on videos saying “PAID ENDORSEMENT,” “SPONSORED.” Having knowledge of FTC guidelines and how to use them in you business will help prevent you from getting into legal trouble.

Need help with your contracts, trademarks, FTC, or related influencer matters? We’re experts on the legal issues facing influencers—reach out for a complimentary consultation!

Mikey Allen