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Contracts are necessary between influencers and businesses

On Behalf of | Jun 7, 2018 | Contracts

Traditional mass marketing tools are being bypassed to some extent in Oregon and nationwide with respect to business marketing trends. The social medial platforms, with their increasingly sophisticated methods of digital marketing, are becoming more popular and more prominently used. With this trend, it is necessary for companies to consult with experienced business law and ecommerce attorneys to assure that the relationships with the so-called influencers are governed by secure, protective legal contracts.

In March 2018, the National Media Council issued regulations to require licensing of influencers, defined as those who promote brands through social media platforms and online methodologies. As a business owner, steer the company only toward licensed influencers going forward. Where the influencer is touting the number of followers it commands, check it out and make sure that they are real and not phantom followers.

Don’t enter into an agreement without understanding all of the details and the ramifications. Make sure that the business wants the specified results and knows what the agreement will demand of the resources for the business. It must understand exactly what the influencer will be doing on behalf of the company and get those points of service down in the contract. There are many ways to pay an influencer, including pay-per-clicks, upfront cash, part payment upon completion of the post or project, payment through products and services and so on.

The influencer usually owns the material used in the promotion but that can be changed by the contracts between the parties, depending on whether the company wants that extra ownership element. Consult with the company’s Oregon business law attorney whenever contract issues need to be serviced. The content cannot be repeated by the company on its website or in some other manner without a contractual arrangement with the influencer.  Influencers can bring a certain entertainment, personal or even slightly eccentric touch to the job that the company may not feel is appropriate for the brand. The company and influencer should be on the same page about how precisely the brand promotion is to work and both parties should share the same values and perspective on the outcome desired.