influencer contract

Contract terms and definitions influencers and content creators need to know.

You’ve just received your first contract to work with a brand as an influencer! Congratulations! While this is an exciting time, it’s important to have an understanding of what you’re getting yourself into and what everything in your contract means. 

To help you out we’ve put together a list of terms and definitions you may find in your contracts and correspondence as an influencer or content creator once you start working with brands.

Affiliate agreement

An agreement where you advertise an item with a link to buy, which gains you a commission per sale. 

Approvals

A period of time where everyone needs to check over EVERYTHING and make sure you’re all on the same page. This includes budget, timeline, compliance obligations, the list goes on. Use this approval time to ensure you’re not getting done over or played the fool.

Brief

The document you’ll receive from the brand (or agency) which will outline content creation guidelines. This will include everything from hashtags, times, handles to use, colours, call to actions, do’s and don’ts as well as any other necessary information relating to the campaign. 

Budget 

How much money the brand or agency has to pay you. This can vary from a little to a lot depending on how much money the marketing and advertising team were allocated from the companies entire budget. 

Campaign

A project carried out by a brand outside of their day to day marketing tasks to bring awareness to their product/brand/event or boost sales. Campaigns run over a certain period of time and include advertising, social media and traditional media presence. 

Category Exclusivity

If this appears in your contract it means you cannot work with other brands in the same category as you. For example – if you’re working with Razer, they may request category exclusivity which stops you working with SteelSeries, HyperX, Corsair etc as they all make gaming peripherals.

Client

This is the brand you’re working with. The end goal is to make them happy. After all, they are the ones paying you! 

Competitor

Others in the market who you are working against. 

Compliance 

See FTC/ACCC

Content

Photos, tweets, Instagram posts, youtube videos, TikTok and live streams that are created for social media platforms. 

Content Creator

Someone that creates content. Either for a company for their social media platforms or for themselves. 

Contract

A document that outlines campaign information and deliverables as well as rules between a brand and influencer. 

CPC

Cost Per Click – how much you are paid each time a link is clicked regardless of impressions. Also known as Pay Per Click or PPC

CPM

Cost Per Milli. How much you are paid per 1000 impressions. 

CTA

Call to Action – a request for the audience to do something. This can range from signing up to a newsletter or purchasing a product to simply liking a post to boost engagement. 

CTR

Click-through rate. The amount of times a user clicks a link after a CTA (Call to action) or impression e.g. Swipe up, link in bio. On YouTube, it’s the number of times a viewer clicks a video after seeing it in their search or on the discover tab/side panel. 

Deliverables

Content the influencer is expected to produce as per the agreement in the contract. This can include videos, photos, tweets and so forth. 

Disclaimer/Disclosure

Transparency between you and the audience about your brand relationship. Check out the infographic below for tips in order to get this right.

ftc influencer guidelines

Embargo

An embargo is a restriction on when something can be made available to the public. As an influencer, you may be given information, a new game or product that you must not tell anyone about until the embargo has been lifted. This includes publishing reviews, alluding to the product on social media and playing games on streams. Breaking an embargo can get you in big trouble so make sure to pay close attention to it.

Engagement

Likes, shares, retweets, views that your content receives. 

Engagement Rate

The number of engagements divided by your follower account across your last 10 – 20 pieces of content.  

Exclusivity period

The amount of time you’re disallowed to work with competitors – this is generally outlined in your contract. 

FTC and ACCC

Federal Trade Commission and Australian Competition and Consumer Commission

Basically, these government bodies are the advertising police. All your content must abide by their rules and regulations as to not to deceive your audience.
To find the regulatory body in your country click here

Impression 

The amount of time a piece of content has been viewed. 

Influencer

A person with the influence that can drive another to take action. 

KPI

Key Performance Indicators. These are used to measure the success of your campaign. KPIs can include purchases, engagements, impressions, views, likes, downloads, signups and much more.  

Manager

The person who helps with the influencers career. Managers offer advice relating to creative and business growth, finding opportunities and collaborations, negotiating contracts and general liaison between the influencers and others in the industry. 

Media Kit

Digital resume used by influencers which outlines their social media reach, skills, experiences, previous work. This document is provided to brands when reaching out for collaborations and partnerships. Do you have a media kit? Click here and we’ll make yours for you! 

Pitch

A proposal for collaboration or partnership with a brand. For more information check out our article How to nail your brand pitch

Press kit

See media kit above.

Reach

The number of followers on social media either on one platform or combined across multiple platforms. 

Restriction

Some brands may place rules around what you can and cannot do with their product or service. This is to protect the brand’s image from being associated with things that may damage the brand.

ROI

Stands for return on investment. In other words, how much a brand gets back per dollar spent on a campaign. This doesn’t just have to be a dollar value. Getting a bunch of content a brand can use on their platforms is just as good as actual sales in some cases. A lot of brands use influencers to create content for them as it’s cheaper than doing it in house. 

Usage

How and where the content you create for a brand will be used and how long for. Take careful note when reading contracts and ensure you agree with what intent they have with your content and photos.  It’s always a good idea to negotiate this part of the contract until you’re happy with it. 

Phew! There is a lot to remember and understand, but it’s OK – never be scared to negotiate anything you’re not happy with. Remember, when it comes to working with brands, it’s important that you’re both happy. 

Remember this is just an introduction to some of the terms you may find in contracts in your journey as an influencer and content creator. We highly recommend getting a lawyer to go over any contracts for work you may receive. We understand that is not possible for everyone so at least get a few people to take a look at it for their input and advice.

Is there anything that we missed that we should add in? 

Let us know in the comments below.


influencer marketing definitions

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