Looking for a way to give your brand a bump? Paying for endorsements is not a new marketing tactic. However, the rising importance of social media in business marketing strategies, and the growing amount of social media “influencers,” has certainly made it a more popular and easily accessible one. Here are some issues to consider when negotiating the terms of your endorsement agreement:
(1) Set a posting schedule. Don’t stop with setting minimums on posts (e.g., two tweets per day). Consider setting a schedule based on the optimal timing of posts for each social media platform.
(2) Demand exclusivity. Aside from the obvious marketing advantages, influencers that endorse other products or services in your field will appear less genuine.
(3) Secure a license to use endorser’s name and likeness. Make sure that you have the right to use the endorser’s persona, voice, name, likeness and biographical information in your own advertising.
(4) Address early termination. You will want to have the ability to terminate, particularly in the event that the endorser does anything that could be viewed as bringing your product or service into public disrepute, contempt, scandal or ridicule. Do not forget to address payment obligations in the event of early termination.
(5) Follow FTC guidelines. Familiarize yourself with FTC guidelines – HERE – and demand compliance from your endorser. The FTC requires transparency when it comes to compensation, even within Twitter’s space constraints. Consider reserving the right to pre-approve posts.