With many businesses choosing to partner with brand ambassadors in order to promote their products and services, the need for brand ambassador contracts has never been higher.
Brand ambassador partnerships are an effective way to reach new audiences and enter new markets. Having a voice that people trust and respect advocating for your brand immediately instills you as a viable purchasing option for potential customers.
Celebrities, athletes, content creators, and industry experts are all popular choices for brand ambassadors. They’re all trusted voices who project a sense of authority and demand a certain level of respect among their followers.
We’re going to take a look at the importance of having clear and comprehensive agreements when entering into a brand ambassador partnership and then examine 9 of the features that any foolproof brand ambassador contract should include.
Importance of clear and comprehensive agreements
As with any business agreement, it’s important that brand ambassador contracts are clear and comprehensive. That means they should include as much detail as possible so that both parties are covered in any eventuality.
Clear and comprehensive agreements help to make sure that both parties are clear of their roles, responsibilities, and deliverables. They help to reduce the likelihood of misunderstandings occurring and align the expectations of the brand and its ambassador.
For the business, a well-drafted contract helps to guarantee that their brand image is protected and that there is an element of quality control over the content created. This helps to make sure that the standards of the brand are met, that their brand voice is consistently maintained and that they’re not negatively impacted by the actions of their ambassador.
In terms of legal protection, a clear and comprehensive brand ambassador agreement provides security for both parties. By outlining terms relating to payment, confidentiality, and intellectual property rights, both parties are better protected throughout the partnership, helping to foster a healthy, long-term relationship.
9 Terms a foolproof brand ambassador contract should have
Here are 9 key terms that every foolproof brand ambassador contract should include.
Ambassador's duties and expected deliverables
Any good brand ambassador contract should include details of the expected duties and deliverables of the ambassador. This will include any promotional materials they’re expected to appear in, social media posts they’re expected to make, in-person appearances at events, or any other instances where they’re expected to promote your brand.
Many brand ambassadorships are focused on online content, with ambassadors using their social media channels to promote your product or service. When it comes to online content, a brand ambassador contract should include details on:
- What form the content will take, e.g. video, images, blog posts.
- Which channels the content will appear on, e.g. Instagram, TikTok, tumblr, etc.
- How much content will be generated.
- How frequently content will be posted.
Contract start and end dates or termination details
Brand ambassador partnerships are typically long-running agreements. In fact, this is something that influencers actively seek out, wishing to build authentic relationships with the brand they’re working with.
That said, it’s still important that a brand ambassador contract includes details of exactly when a partnership begins and when it will end.
This allows both parties to agree on fair compensation for the expected duration of the partnership. It’s possible that both parties may wish to continue the partnership beyond the end of the contract. Having a firm end date allows for renegotiation for a fair deal based on the success of the initial partnership.
The contract should also include a termination clause–in the event that either party wants to end the agreement before the agreed end date. For example, if your ambassador starts acting in a way that disparages your brand, you’ll want to end your partnership with them quite quickly!
A termination clause should, therefore, list any unethical or problematic behaviors that will lead to the contract being terminated without any negative consequence to your business.
Detailed brand guidelines and collaboration KPIs
In order to make sure that everybody’s on the same page, your brand ambassador contract should include detailed brand guidelines. These could include:
- An explanation of your brand voice and how ambassadors can use it effectively
- Key slogans, logos, or other identifiers that you wish to be included in branded content
- The unique selling points of your products/services that you want highlighting
It’s also helpful to include the SMART goals (Specific, Measurable, Attainable, Relevant, Time-Specific) you wish to achieve during the partnership. Using KPIs (key performance indicators), which will provide a measurable way to see whether your targets have been met. The KPIs you pay attention to will depend on your overall business goals.
KPIs you may wish to measure include:
- Number of interactions (likes, comments, shares, etc.) on content created by your brand ambassador
- Increases in your conversion rate and total sales
- Increases in website traffic
Various types of software are available that can help you track your KPIs and analyze the success of your brand partnership. You could use the same career development software you use for your in-house employees to track the performance of your brand ambassadors and how their individual performance aligns with your overall company goals.
Content ownership and brand's usage rights
A good brand ambassador contract will spell out who has the rights to the content generated during the ambassador’s tenure. This includes any social media content, videos, images, and other materials used to promote the brand.
Some brands prefer to retain sole ownership over the content created, although this could dissuade potential ambassadors from forming a partnership. More commonly, brands will retain the right to repurpose any content created during the partnership, while ownership actually rests with the ambassador who created it.
Outlined compensation including payment terms and bonuses
It’s important that your brand ambassador contract includes a section that details how brand ambassadors will be compensated. This includes how much they’ll be paid, how they’ll be paid it, and whether there’s the potential to earn any bonuses.
Some brand ambassadors are willing to represent your brand in return for free products or credit toward future purchases with your brand. Others may expect to be paid in cash. Either way, it’s important to lay out when compensation will be earned. For example, will it be on a regular basis, or after certain deliverables have been met?
Some brands will pay their ambassadors bonuses if they exceed certain targets, such as increasing website traffic or boosting conversion rates beyond what was expected. If you intend to pay bonuses to your brand ambassadors, details of these should also be included here.
Ambassador brand exclusivity and non-compete restrictions
You may wish to include clauses that prevent your brand ambassador from working with other brands during the course of your partnership, especially direct competitors.
If your brand ambassador is seen to be promoting competing brands while they’re promoting yours, then it is likely to threaten your market share. Not only that, but it can also make your ambassador's endorsement of your products or services seem inauthentic.
Including an exclusivity or non-compete clause in your brand ambassador contract helps to guarantee that your ambassador won’t undertake any other work that will be detrimental to your brand, protecting your investment.
Confidentiality clauses on brand information and trade secrets
Non-disclosure and confidentiality clauses are an important part of any contract, helping to protect you and your business interests.
They’re especially important when partnering with ambassadors who work outside your organization, as they make sure that any trade secrets you share to help inform your partnership don’t make their way to the general public.
Including these clauses helps to protect your brand image in the eyes of the public, while also ensuring that confidential information about your business isn’t revealed to your competitors.
Other brand provisions such as products, brand materials, or training
If you intend to provide your brand ambassadors with products or brand materials to use in their content, these should be included in their contract.
It’s also a good idea to detail any training that will be given as part of the partnership. This might take the form of a crash course about the history of your brand and its values or training on how to get the most out of your products or services.
If there’s a lot that your ambassadors need to learn, you might even set them up on the employee onboarding software that you would use for any other kind of new hire. This would make it easy to track their progress throughout the training need, regardless of where they’re based.
Governing laws that will apply in case of legal disputes
It’s a good idea to include a clause specifying which governing laws will apply in the case of a legal dispute. With brands often working with ambassadors based around the world, this helps provide legal clarity over which jurisdiction’s laws will apply if a dispute occurs.
Depending on the location of your business, and your ambassador, a number of state and national laws may apply to their activities. Where possible, consider checking with a lawyer in your state or country to verify the local governing laws pertaining to brand ambassador agreements.
Final thoughts
Businesses embarking on partnerships with brand ambassadors must have foolproof contracts. This makes sure that the company’s brand voice and reputation are protected and that both parties are protected legally and financially.
Include the 9 key terms we’ve covered here in your contract, and you’ll be able to enjoy all the benefits of a brand ambassador partnership without having to worry about any negative side effects.