Brand Ambassador Contract Template: Do we need them?
The decision of whether or not to use a contract with your influencer relationships boils down to a few aspects of your campaign. You must take into consideration what the compensation is, the size of the influencer you will be working with, and the type of product you are asking them to promote. Lastly, are you dealing with a one-time post, or introducing an ambassador to the team. The questions remains: Do I need a brand ambassador contract? Should I use a brand ambassador contract template?
If you’re only compensating your influencer with free product, and the free product is valued at less than $100 it’s probably okay to simply have their word that they will hold up their end of the bargain. At the end of the day, you wouldn’t go through the process of enforcing the contract for $100 worth of product anyways. However, in my experience, even when working with lower value deals, adding a contract benefits you because it adds an element of credibility.
Brand Ambassador Contract Template: Pros and Cons
The Size of the Influencer
The size of the influencer and the compensation are usually correlated to some degree. The bigger the influencer, the more you’ll pay. Generally, macro-influencers (an influencer with more than 100k followers) is going to cost $1,000 or more per post.
SIDE NOTE: If you’re using a macro influencer and they charge less than $1,000 per post, there is probably a reason for that. Unless that reason is that they absolutely LOVE your product, you should proceed with caution. Do your due diligence.
If you want a hard and fast rule for influencer contracts, then around $1,000 USD is where you should consider setting the bar. Once you’re shuffling around that kind of coin you’ll want some loss mitigation procedures in place. Use a standard brand ambassador contract template template and make the terms very clear to your ambassador.
Micro influencers and contracts
Some micro-influencers are going to fetch upwards of $1,000 per post, although 96% of micro influencer charge less than $500 per post. Our agency uses contracts for micro influencers, but it’s not the norm. Because we have scaling efficiencies and systems in place it allows us to send and receive contracts without burdening our campaign managers. That being said, my official position on the matter is that if you have the proper systems in place, you should use contracts. If you have a new team that still wading through the waters, only use contracts for your influencers who are making the big bucks.
Ambassador vs influencer and how contracts affect your relationships
The last thing to consider is whether you want to work with a rotating list of influencers, or a more static group of ambassadors. Typically the ambassador relationship is more involved than the influencer relationship. You may have offline expectations for your ambassadors, or you may take non-compete clauses more seriously. You wouldn’t want an ambassador to be seen posting with competitors products. I recommend using a brand ambassador agreement every time. It’s a longer relationship, it’s a more involved relationship, and you want to have a standard of professionalism.
A note of caution
Always use some form of influencer agreement for products that can potentially be dangerous in any form. If it’s something the influencer has to ingest and could potentially get sick from, you’ll want to cover all bases. In lieu of a contract, you can also have a lawyer carefully craft the terms and conditions of using your product such that they cover any liabilities associated with its use.
If you’re interested in what types of clauses you should use in an influencer contract, we have a comprehensive list below. For even more info on what you need to get started with influencers, check out the Development Kit for influencer marketing professionals. It includes a full influencer contract template ready to be used.
Exclusivity: To ensure your influencer isn’t simultaneously promoting your competition.
Usage Rights: One of the biggest benefits of having a solid influencer marketing program is that you get a bunch of great content from it. Make sure your influencers know that you want the right to use their content for any repurposing you see fit.
Deliverables: Include any deliverables you and your influencer have agreed to. Ex. number of posts, dates, syndication, etc.
Timeline for Deliverables: Ensure mutual understanding of the expectations regarding the timeliness of the collaboration.
Cancellation: The notice either party must provide if they do not wish to see the collaboration through.
Confidentiality: Ensures that both parties confidential information is held private.
Approval Process: Outlines whether or not the influencer must submit their content for approval prior to uploading.
FTC/ASA Responsibility: Make sure you cover yourself with the FTC. This means informing the influencer that you, as an advertiser require them to use some sort of indicator that they have been gifted product or paid in a sponsorship relationship with the brand. Typically, this is #ad, #sponsored, or #paid.
Compensation/Payment: The compensation structure should be clear and the payment schedule needs to be easy to interpret.
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