With businesses focusing more and more towards marketing, companies often hire brand ambassadors and influencers to increase brand awareness or help in the sale of a product.
If businesses wish to hire a brand ambassador for this purpose, they’ll need a brand ambassador contract. A brand ambassador contract formalizes the relationship of the business with the brand ambassador along with the duties of each party.
Below is a downloadable brand ambassador contract template which can be edited to suit the requirements. Read ahead for more details and tips about brand ambassador contracts:
Part 1: What is a Brand Ambassador Contract?
A brand ambassador contract is an agreement between a company and a brand ambassador or influencer that the company is hiring. The purpose of hiring the brand ambassador is for the promotion of a product or a service.
The brand ambassador or the influencer is retained by the company to provide a variety of marketing services, which may include:
- Promotion of an existing or newly launched product in advertisements
- Attending events on behalf of the company
- Promoting a product or service on social media
- Providing discount codes to their audience for buying the company’s products
- Taking part in any marketing campaign designed to boost the brand’s image
A brand ambassador may be expected to fulfil any or all of these duties as outlined in the brand ambassador contract. In return, the company provides the brand ambassador with monetary compensation and/or a commission of the product sold through the brand ambassador’s channels.
Part 2: What Purposes Does a Brand Ambassador Contract Serve?
A brand ambassador contract is important to protect the brand ambassador as well as the company. This agreement outlines the responsibilities of the company towards the brand ambassador and vice versa.
As is shown in Part 1, there can be many duties that might be expected of a brand ambassador. A brand ambassador contract mentions these duties in writing so as to make things clear for both parties.
There might be some duties that a brand ambassador has an objection to. These can be mentioned as exclusions in a brand ambassador contract to avoid conflict in the future.
Additionally, a brand ambassador contract also ensures that the ambassador gets paid regardless of the effect of the marketing campaign towards the sale of the product.
Part 3: What is Covered in a Brand Ambassador Contract?
A brand ambassador contract typically includes:
Identification of Parties:
The name of the company and the brand ambassador should be declared correctly, along with the contact information for each of these parties.
Duties of the Brand Ambassador:
The contract should mention the services that are required of the brand ambassador. Each service should be stated clearly. If there is social media marketing involved, the marketing platforms (such as Youtube, Twitter, etc.) should be listed as well.
Compensation:
The compensation clause should state the amount of money that the brand ambassador will be paid for fulfilling the duties.
Ownership of Product:
In case that a brand ambassador is hired to promote a product, the agreement should state that the product will be provided by the company at no expense. The agreement may also add that the brand ambassador cannot resale the product without company’s consent.
Copyright:
The copyright clause states that the brand ambassador owns the copyright to any work that is created by the brand ambassador. If there is a reproduction of the work after the tenure of the agreement, the company will need a fresh agreement with the brand ambassador.
Confidentiality and Non-Disclosure:
Confidentiality clause should dictate that the brand ambassador may not share any confidential information about the product or the service that is obtained during their working together.
It may also add that the brand ambassador must return any confidential documents that they have obtained with the product.
Period and Early Termination:
The agreement should have the time period for the validity of the agreement. There should also be an early termination clause which mentions the event of either party wanting to end the agreement before its due expiry.
Separability Clause:
Separability clause states that if any part of the agreement is considered invalid by a court, the rest of the agreement will still remain valid.
Mandatory Disclosures:
In some territories, it is mandatory for an influencer to disclose that they are advertising for a product or a company.
Applicable Law:
The brand ambassador contract must mention the applicable laws and the jurisdiction in which the agreement holds. Any dispute to the agreement can be taken up in the mentioned jurisdiction only.
Part 4: Benefits and Drawbacks of A Brand Ambassador Contract
Advantages of Brand Ambassador Contracts:
- The primary benefit of the brand ambassador contract is that the company and the brand ambassador realize what is expected of them.
- The brand ambassador lists the duties and obligations of each party towards the other. Neither party can refuse the duties listed in this agreement once the agreement has come into effect.
- Marketing is an unpredictable field, so a company may or may not earn the return of investment in hiring a brand ambassador. A brand ambassador contract makes sure that the brand ambassador gets paid either way.
- The brand ambassador contract also ensures that the confidential secrets of a company are kept secret even if they need to be shared by the brand ambassador.
Disadvantages of Brand Ambassador Contracts:
- A brand ambassador contract outlines the duties that a brand ambassador is required to perform for the entire duration of the contract, which can usually go on for months. If a brand ambassador cannot perform a duty for some reason in the future, it may attract penalties.
- A brand ambassador contract gives little flexibility to companies who might want to alter their marketing strategy in the future with changing marketing trends. The brand ambassador might charge an additional fee for changes in the agreement.
- The brand ambassador will have to partake in the marketing of the future products and services of the company for the duration of the contract, even if they do not believe in the quality or idea of that product/service.
Conclusion
In order to facilitate the working relationship between a brand ambassador and a company, a brand ambassador contract is of supreme importance. These contracts can be hard to create unless one has extensive legal knowledge.
The best way to proceed is to use a brand ambassador contract template from CocoSign, created by legal experts to ensure its validity in court.
There are also many other contract templates to suit every requirement. All the templates are downloadable and can be edited, tailoring to one’s needs.