Nowadays, social media is a platform that is widely used by businesses to promote their products. Apart from displaying advertisements on social media, one way to promote a product is by collaborating with someone who has a loyal following on social media or commonly called an influencer. Yes, only with a large number of followers and engagement such as likes, comments, or good views, they can become role models for the community and “influence” target consumers to use certain brand products or services. This is what is now often referred to as the endorsement system. In simple terms, endorsement itself is an activity to support and promote goods or services in collaboration with a party that is considered to have influence on its followers on social media. Now, because this marketing strategy requires KH Pals to work with influencers, KH Pals need an influencer cooperation agreement contract. So, what are the things that need to be considered and negotiated with influencers in order to get favorable results, especially for your business? How to make an influencer cooperation agreement contract? Check out the explanation below.
What is an Influencer Collaboration Agreement?
Influencer cooperation agreement or endorsement contract is a cooperation agreement between a brand or business and an influencer, whose purpose is to promote a product or service on their social media. Usually, an influencer contract is similar in format to a Memorandum of Understanding (MoU). Simply put, the existence of this agreement contract can be written evidence that can show the agreement of two or more parties to collaborate. The agreement usually contains a description of the project to be undertaken, along with the contribution of each party.
Things to Look for in an Influencer Collaboration Agreement
Before making a cooperation agreement with an influencer, it is better for KH Friend to pay attention to the following points:
Choose Influencers that Match Target Consumers
Many business people choose influencers based on their large number of followers. In fact, not all influencers with a high number of followers have “influence” for business. This usually happens due to differences in target consumers and the followers they have. For example, your business is in the culinary field that specializes in Korean food. So, you can look for Korean fan influencers, especially those whose age matches your target consumers. So that the marketing campaign that you run is more targeted. So, before deciding which influencer to work with, it’s a good idea to do some research first. To determine the right influencer for your business, you can use the 3R formula:
- Relevance: Influencers who share content and items that are relevant to your business and target audience.
- Reach: The number of people an influencer can potentially reach and bring value to your business.
- Resonance: The potential level of engagement that can be created with the audience, and is relevant and valuable to your business product.
Make a long-term cooperation agreement
Nowadays, Influencer marketing should be made as Influencer Relations. Where, the influencer’s role is no longer as a ‘promoter’, but rather leads to the establishment of a relationship with the influencer. So, it’s good when KH Friend wants to use the services of influencers, make a long-term cooperation agreement. This will have a good impact and can create high credibility for the brand or product.
Engage Influencers as Part of the Customer Journey
Many businesses use influencers to increase sales without paying attention to other aspects that are equally important. Influencers are supposed to be people who accompany consumers and become part of the customer journey. Starting from brand awareness, purchase decisions, to encouragement for consumers to make repeat purchases or even recommend the product to others. So, when you want to use the services of an influencer, give them the freedom to promote your product as long as it does not violate the existing boundaries. Ask the influencer to tell the story of your product in their signature style to make the target consumer interested and get into the story they tell on social media.
Negotiate Fees in Detail
After doing your research on the type of influencer that is suitable for your business, it’s important to agree on the cost. Typically, influencer fees are calculated based on the type of post, the number of times it was uploaded, and on what platforms your product is marketed. However, it is possible that there are influencers who are not paid with money, but use other rewards, for example in the following ways:
- Send product samples to influencers for free to review
- Offer influencers to exchange posts
- Send products for influencers to use as gifts or giveaways for their followers
How to Make an Influencer Collaboration Agreement?
If you have managed to find a suitable influencer and negotiate according to the desired agreement, then the next step is to make the influencer cooperation agreement itself. This cooperation agreement needs to be drafted jointly by the business owner and influencer in order to reach an agreement and fulfill mutual obligations without coercion. Then, KH Buddy can include the agreed matters in the cooperation agreement letter. Similar to other cooperation agreements, agreements with influencers usually contain agreements that regulate the rights and obligations of the parties. For example, an influencer offers to upload two posts on Instagram once a week for a month. This means that the influencer has an obligation to upload posts according to the specified time and standards requested by Sobat KH as the brand owner. As a user of influencer services, Sobat KH has the obligation to pay a service fee to the influencer after they have fulfilled their obligations. In addition, the influencer cooperation agreement must also fulfill the four valid conditions of the agreement as stipulated in Article 1320 of the Civil Code, namely:
Agreement of the Parties
An agreement between the business owner and the influencer regarding the contents contained in the agreement. That is, it is not made under duress.
The existence of capacity to make an agreement
Business owners and influencers are legal persons (adults) according to relevant laws and regulations.
Existence of Certain Causes
Includes things that are promised, as well as related rights and obligations that are clearly outlined.
Existence of a Halal Cause
Not contrary to matters regulated by laws and regulations.
Benefits of Creating an Influencer Collaboration Agreement
Making a cooperation agreement is necessary so that the agreement between the product or service owner and the influencer is legally valid and equally protected if one party violates the agreement. Not only that, a cooperation agreement contract also has several other benefits such as:
As a Tool to Monitor and Control
That is, with a contract agreement, KH Friend can easily monitor and control whether the influencer has done what was promised or not, or even violated the things agreed upon in the contract.
To Prevent Problems in the Future
With an agreement, each party can know its rights and obligations, so that it can support the smooth implementation of a business relationship.
To determine how to solve the problem
For example, the parties may choose to settle the matter by family or deliberation first. But if not, the parties can choose to settle through court channels.
As Evidence in Case of Dispute
Business relationships do not always run smoothly, it is very possible to break promises, not do what has been promised, and violate the contracts that have been made. So that with the existence of an agreement contract, it can become written evidence to sue the party who breaks the promise or default.
KH Contact
Making a cooperation agreement may be difficult, especially for business owners who do not understand the risks that may occur in the future. Especially if you use the services of an influencer, the risk to your brand reputation and the products you sell is higher. If your brand’s reputation is damaged because of an influencer, you may lose the trust of your target customers and affect your sales.
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Therefore, Kontrak Hukum is here to help you reduce the risks that occur through the cooperation agreement. With Kontrak Hukum, Sobat KH can easily make a cooperation agreement according to your business needs. So, immediately make your business cooperation agreement at Kontrak Hukum by visiting this page. If you have other business-related questions, you can also consult for free through Tanya KH and through Direct Message (DM) to Instagram @kontrakhukum.
