An Influencer & Brand Ambassador Agreement governs promotional collaborations between brands and individuals. This playbook focuses on content ownership, disclosure obligations, and performance expectations.
Why This Matters: Unclear or onerous payment terms can lead to nonâ€payment, disputes and strained business relationships.
Negotiation strategy
If you're the Company:
Ensure payment terms are clear and align with company cash-flow capabilities. Negotiate for favorable invoicing procedures and late payment remedies to protect financial interests.
If you're the Influencer/ Ambassador:
Advocate for timely payments and transparent fee structures. Ensure that payment schedules align with deliverable timelines to maintain service continuity.
Essential elements
1
Payment Schedule
Defines timing of payments.
2
Invoicing Procedures
Details invoice submission process.
3
Late Payment Remedies
Outlines penalties for late payments.
Action framework
ACCEPT
Propose edits if payment terms are vague or misaligned with deliverables.
EDIT
Reject if terms impose undue financial risk or lack clarity.
ADD
Add clauses for interest on late payments or specific invoicing requirements.
PRO TIP
Always ensure payment terms are explicitly linked to deliverable milestones to avoid disputes.
Example clauses
FAVORABLE
Preferred Payment Clause
"The Company shall pay the Influencer a fee of $[amount] for each deliverable completed in accordance with the terms of this Agreement. The fee shall be payable within [number] days following the Company's receipt and approval of the deliverable."
NEUTRAL
Standard Payment Terms
"Payments shall be made on a monthly basis, with the first payment due on [date]."
UNFAVORABLE
Ambiguous Payment Terms
"The Company may pay the Influencer at its discretion, without a fixed schedule."
Fallbacks
High-Value Contracts
For contracts exceeding $100,000, escalate to senior management for approval of payment terms to mitigate financial risk.
Performance-Based Contracts
In performance-based contracts, ensure payment terms are tied to specific performance metrics to incentivize quality deliverables.
International Agreements
Consider currency exchange rates and international banking fees when setting payment terms in cross-border agreements.
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