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Social media has become a great platform for creativity, content creation and entertainment.
And, for many, it’s a fantastic money-making opportunity in 2025.
Whether you’re on the way to becoming an Instagram influencer or a rising star on TikTok, social media can open up additional income opportunities through sponsored content. With evolving digital regulations and an increasingly competitive marketplace, staying legally informed is more important than ever.
It’s a great way to earn some extra cash (and perhaps one day it’ll become your full-time career!). But as your brand grows, it’s wise to start thinking about your legal set-up. It’s never too early to take steps towards legally protecting yourself and your creative work.
If you’re trying to make money off social media, you should be asking yourself:
- What does this mean for me legally?
- Am I running a business?
- What contracts will I be agreeing to?
- What happens if things go wrong later?
- How do I protect myself?
In this article, we’ll walk you through three key legal points to consider if you’re trying to make money off social media in 2025.
1. Let’s Get Down To Business… Do You Need To Formally Set Up As A Business To Make Money On Social Media?
If you’re looking to earn income in return for work performed for others on social media (such as sponsored posts by brands), you’re essentially running a business – and that’s brilliant!
However, it’s at this stage that you need to consider your business structure and how you want to manage your social media activities. With updated digital commerce and consumer laws in 2025, making an informed decision about your business entity is key.
As a first step, think about what structure you’ll choose for your business. Many newcomers begin as a sole trader – operating under their own name. In New Zealand, you’ll typically need an Inland Revenue Department (IRD) number, which is also used when sending out invoices.
Setting up as a sole trader is perhaps the most practical option for influencers who are just starting out. It keeps operating costs low while allowing you to officially run your business. As your venture grows and your collaborations increase, however, being a sole trader might expose you to additional risks.
This is when you might want to consider whether to register as a company. A company registration creates a separate legal entity with limited liability, meaning that your personal assets are generally protected from any business debts. Of course, establishing a company comes with higher costs and ongoing compliance obligations, such as filing annual returns with the Companies Office. You can always change your business structure as your social media enterprise evolves.
2. Content Is King… So Protect Yours!
As your platform grows, protecting your brand and the content you produce becomes paramount.
This might involve securing your social media handle (or the name of your platform), your unique style or even your logo. After all, you wouldn’t want anyone else profiting from the creative efforts you’ve put into building your brand!
In New Zealand, there are several ways to protect your brand. One of the first steps is to consider applying for a trade mark for your brand name or logo. For example, if you begin selling merchandise featuring your branding, having the legal rights to that brand is essential. Should your trade mark be successfully registered, you’ll have exclusive rights for up to 10 years, and you can take action against unauthorised use.
Beyond trade marks, your original content is generally protected by copyright automatically under New Zealand law – there’s no need to register it formally. Copyright arises as soon as you express a creative idea in a tangible form, whether that’s through a YouTube video, blog post or digital art on Instagram. Still, it’s wise to include a Copyright Disclaimer on your social media channels, such as your YouTube channel, to clearly assert your rights.
It’s equally important to ensure that you don’t inadvertently use someone else’s intellectual property in your content. For example, using another business’s logo or replicating a unique artistic style without permission could result in legal disputes and hefty penalties. To safeguard against such mishaps, consider consulting with a specialist lawyer – perhaps check out our intellectual property services for more guidance.
3. Get Your Head Around Contracts
While you might not be at the stage of signing legally binding contracts just yet, if you start making money from social media then contracts will quickly become a significant part of your professional life.
Understanding contracts is essential. One of the most common agreements you’ll encounter is an Influencer Agreement. This contract is typically provided by a brand when they engage you to promote their products as a ‘brand ambassador’ or sponsor.
It’s crucial that you thoroughly review such contracts – and if possible, have a lawyer examine them on your behalf. Our article on legal advice for influencers offers some excellent insights into what to watch for. Remember, you could be legally bound to the terms of a contract even if you never fully read it!
If a brand provides you with a contract, consider the following key points:
- Payment: How will payment be handled? Will you receive free products solely, or will there be monetary compensation and possibly a commission structure?
- Intellectual property: In cases where you create content—such as videos featuring a brand’s trade marked logo—who retains the rights to that content?
- Cancellation/Term: Is the engagement for a one-off promotion, or will you be entering into a long-term ambassador relationship?
- Disputes: What mechanisms are in place if disagreements arise between you and the brand, or if customer dissatisfaction emerges from the promoted product?
When negotiating with larger brands, it’s even more important to be cautious before signing any contract. Don’t hesitate to seek professional advice from our contracts team to ensure you’re safeguarded.
4. Future-Proof Your Social Media Business
As digital platforms and regulations continue to evolve, keeping abreast of the latest trends and legal requirements is crucial. In 2025, additional factors such as data privacy laws and platform-specific policies are becoming increasingly influential. For instance, staying compliant with updates in online advertising standards and data protection legislation can save you from costly disputes down the track.
Regularly reviewing your contracts and legal policies—for example, your website terms and conditions and social media guidelines—is a proactive way to address any changes. This not only protects your interests but also reinforces your professional image to brands and followers alike.
Speak To A Lawyer
Although your brand might still be in its growth phase, it’s always a good idea to consider your legal foundations sooner rather than later.
Whether you’re building your presence on YouTube, Instagram, TikTok or another platform, our expert lawyers are ready to help you with business set-up, brand protection, contract review, and more. Additionally, our resources on legal aspects of starting a small business can provide a comprehensive overview tailored to your needs.
Get in touch with us for a free, no-obligations chat on 0800 002 184 or [email protected].
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