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So you’re scrolling through Instagram in 2025 and you see Kylie Jenner’s latest ‘paid partnership’ ad with Adidas. She’s reportedly earning well over one million dollars per sponsored Instagram post. As a company looking to boost your marketing efforts, you might have heard about the concept of influencer marketing – a trend that has only grown stronger in recent years.
Influencer marketing remains a form of social media marketing where influencers – both individuals and organisations – endorse products and services on their social platforms. In 2025, this strategy has evolved beyond mere engagement; it’s now a sophisticated tool that can dramatically increase website traffic, generate buzz and significantly enhance your brand’s reputation and credibility. With industry estimates consistently showing that it contributes billions to the global marketing spend each year, it’s no wonder that influencers are a key part of the future of online marketing. If you’ve never employed influencer marketing before, you might have a few questions about how to navigate this dynamic landscape.
An extremely important part of engaging an influencer is to have a robust Influencer Agreement in place. This document is crucial not only to secure the deal but also to protect both your brand reputation and your marketing investment. It’s worth reading our detailed article on why a lawyer should review your contract before you finalise any agreements.
What Are The Risks Of Engaging An Influencer?
Before signing on the dotted line, here are some key risks you should consider when engaging an influencer in today’s market.
Fake Followers
It is essential for social media marketers to be aware that many influencers supplement their reach by purchasing followers or using bots. Even in 2025, if an influencer’s follower count seems exceptionally high, it’s wise to question its authenticity. Ensuring transparency by verifying the presence of fake followers is key to making a sound partnership decision.
The best way to assess the genuineness of an influencer’s Instagram account is to run their handle through a bot analytics tool or statistics website such as Social Blade. If you notice sudden spikes in follower numbers that do not correlate with any significant events, this could be a red flag worth investigating further.
Inconsistent Content Strategy
Managing campaigns with multiple creators can be challenging. Different influencers may interpret creative briefs in varying ways, which can lead to inconsistent messaging across your marketing campaign. Even if you have a clear vision for your campaign, ensuring that your influencer fully understands and adheres to your brand guidelines is vital. Check out our guide to setting out good terms and conditions for additional insights on maintaining consistency and protecting your brand.
Two Words: Fyre Festival
If you missed the Netflix documentary, here’s a brief refresher: Fyre Festival was an ill-fated event recklessly promoted by multiple influencers and social media personalities. Promises of extravagant beach parties and luxury accommodations turned out to be nothing more than a mirage, leaving attendees stranded with inadequate provisions and disorganised logistics. This fiasco not only left festival-goers in dismay but also tarnished the reputations of many involved influencers.
Incidents like Fyre Festival, alongside controversies such as the one involving YouTuber PewDiePie’s offensive content that led to the loss of his sponsorship with Disney’s Maker Studios, serve as stark reminders. They underscore the importance of ensuring that both you and your influencer are crystal clear on campaign promises, especially given how influential and far-reaching their content can be. For more tips on safeguarding your brand, you might find our article on avoiding misleading or deceptive conduct helpful.
Additionally, as regulatory scrutiny intensifies in 2025, maintaining transparency and authenticity in influencer engagements is more critical than ever.
What Do I Need To Know About Influencer Marketing Laws?
Whether you are a brand looking to engage an influencer or an influencer seeking collaboration opportunities, understanding the legal framework surrounding these relationships is crucial. In New Zealand, the Advertising Standards Authority (ASA) requires influencers to clearly disclose if a post is a paid endorsement of a product or service.
Whilst these guidelines remain voluntary, the principles embedded in the Fair Trading Act 1986 are very much enforced. If a post fails to disclose the promotional nature of content – including any financial incentives – the influencer may be breaching the law, potentially constituting misleading and deceptive conduct. As such, having a comprehensive Influencer Agreement can help mitigate these legal risks and protect your brand. For further reading on protecting your business legally, check out our overview of contracts.
Things To Consider In Influencer Agreements
Despite the risks associated with engaging influencers, when managed correctly, they can significantly elevate your brand’s visibility and engagement. To ensure you reap the benefits of influencer partnerships, it’s vital to have a well-crafted Influencer Agreement. Here are several key considerations to include in your agreement:
Setting Clear Expectations For Work And Remuneration
Clarify the scope of work expected from the influencer. For example, will you provide creative direction for captions or require approval of final drafts before posts go live? Also, discuss remuneration details – whether payment is per post or a fixed fee for a broader promotional campaign. Clearly documenting these expectations in your Influencer Agreement helps prevent mismatches and disputes later on. For more details on fair payment terms and avoiding contractual issues, you might find our insights on supply agreements useful.
Who Owns The Photos The Influencer Is Posting?
Copyright and intellectual property matters are especially pertinent in influencer marketing. By default, the creator of content retains copyright, unless otherwise agreed. Commonly, platform terms like Instagram’s set out that users grant a licence for content use. However, if you want your brand to own the rights to the images or videos produced, this must be expressly documented in your contract. It’s crucial that both parties agree on rights assignment to avoid future disputes – you can read more about managing intellectual property here.
Copyright Infringement In Influencer Marketing
If an influencer inadvertently uses an image or music that infringes on copyright, your business could be exposed to liability. One of the landmark cases in this area involved a suit against influencer Michelle Phan over unauthorised background music usage – a case that, although settled, highlighted the risks of copyright infringement. Including robust indemnity clauses in your Influencer Agreement to address IP infringement risks is essential.
Is The Influencer An Independent Contractor Or An Employee?
Defining the relationship with your influencer is paramount. Consider whether the influencer is engaged as an independent contractor or an employee. This distinction affects not only tax and employment obligations but also the degree of control you can assert over their work. If you require ongoing, closely-managed content creation, the influencer might be classified as an employee, whereas a one-off or highly autonomous engagement is more likely to be contractual.
Exclusivity: Can The Influencer Work With Your Competitors?
Exclusivity is another critical aspect. Discuss whether the influencer is permitted to work with competitors or related brands simultaneously. Clearly outlining exclusivity clauses in your agreement can help ensure that your brand remains the focal point of their promotional activities. This is all the more important in a competitive market such as 2025, where brand positioning can make all the difference.
In today’s dynamic digital world, it is also worthwhile protecting your marketing efforts by reviewing your legal documents periodically. Our guide on trademark needs can offer further assistance if you are considering expanding your brand’s intellectual property portfolio.
Talk To A Lawyer
Having an Influencer Agreement is essential for protecting your brand and securing your revenue streams. Whether you’re a brand engaging an influencer or an influencer promoting a brand, a well-drafted contract is your best defence against potential legal pitfalls. If you have any questions or believe you might need an Influencer Agreement, please call us on 0800 002 184 or email [email protected]. Our expert team is here to ensure that your influencer partnerships are not only successful but legally secure.
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