Social media influencers have changed the way businesses approach marketing. When the concept of social media influencers first took root, contracts between the influencer and the brand they were working for were informal and there was no contract analysis or business advisory. Now that the monetary value of the services provided by social media influencers has grown exponentially, both social media influencers and the brands they work for want clear and understandable contracts, hoping to avoid legal quagmires and protecting their reputation.

Clear contracts are beneficial for social media influencers and the brands they represent. When comprehensive contract analysis allows social media influencers to understand the brand's expectations, they are better able to create content that aligns with the brand's goals. The purpose of contract analysis is to help both sides walk away satisfied with the partnership, increasing the chances that both parties will work together in the future. Contract analysis is especially important for micro-influencers and nano influencers who may not have experience working with brands. It may help social media influencers understand what business agreements should provide and what details should be reviewed, keeping their best interests in mind.

How Contract Analysis Helps Social Media Influencers Manage Rogue Behavior

Comprehensive contract analysis for social media influencers protects both the brand and the influencer. For example, contract analysis will help the influencer understand what images or comments their sponsors would consider offensive or inappropriate. Some contracts may include a “continuity of persona clause.” This would require social media influencers to maintain consistent character throughout the campaign, preventing rogue content. Contract analysis could point out specific topics that the influencer would avoid, like politics, race relations, and reproductive issues. These clauses may also include things like an influencer's hairstyle.

Business Advisory for Social Media Influencers on Endorsement Disclosures

Many contracts now include clauses that layout how influencers will comply with FTC rules. Contract analysis and business advisory for social media influencers may explain what their FTC requirements are. For example, influencers who don’t properly disclose their paid relationships with brands might be hit with fines from the FTC and be forced to close their streaming channel. Both the social media influencer and the brand they work for might be vulnerable to lawsuits from customers. Business advisory should help social media influencers understand that financial relationships are not just limited to the exchange of money. In many cases, if social media influencers received anything of value for mentioning a product, such as free samples, the FTC recommends including language that clarifies that samples were received in exchange for advertisement.Most contracts for social media influencers require exclusivity. This means that an influencer could not enter into a comparable contract with a competitor, and they would need to verify that they have no existing contracts with a competitor’s brand.

The Benefit of Getting Comprehensive Contract Analysis for Social Media Influencers

Social media influencers and the brands they represent may benefit from well-structured contracts that specify what the brand expects from the influencer and the compensation the social media influencer will receive for the work that they do. As the money involved for both social media influencers and the brands they represent continues to grow, contract clauses become more explicit and more restrictive. Here at Fusion CPA, we make it our mission to provide comprehensive contract analysis to help social media influencers gain a clear understanding of what they are getting into, so there are no surprises down the road. Fusion CPA is a firm that can help you understand the ins and outs of any contract before you sign on the dotted line. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!


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