If you run a business, then you know in today’s competitive business landscape a strong marketing strategy is essential for achieving success. Companies employ various methods to enhance their presence in the community, such as advertisements, active social media engagement and event hosting.

One effective approach that businesses often embrace is the hiring of brand ambassadors. These individuals play a vital role in elevating a brand’s image within the community, fostering connections and generating an overall positive buzz. 

However, before you enter into a brand ambassadorship, it is crucial to understand the legal aspects surrounding the relationship between ambassadors and businesses. That way, you can ensure both parties are entering into the agreement well protected. 

Let’s take a look at some of the legal considerations you need to look out for when hiring brand ambassadors.

What Do Brand Ambassadors Do?

A brand ambassador is someone who is compensated for endorsing a business’s brand, products and/or services. Businesses pick brand ambassadors who can bring a human touch to their image and be a trusted face for the community. 

Beyond adding a personal touch, brand ambassadors leverage their personal networks to broaden the company’s reach, directly engage with potential customers to foster relationships, and provide invaluable feedback to the company, reflecting the voice of the consumers.

You’ve likely seen advertisements with famous faces attached to it – but it’s  not necessary for a brand ambassador to be an ultra famous celebrity. In fact, many brand ambassadors represent a business because of a certain expertise, connection or authenticity they are able to bring to the table. 

A brand ambassador’s specific tasks will depend on the contract they have with the business they are representing. Usually, brand ambassadors’ duties involve:  

  • Shooting advertisements 
  • Increasing brand awareness
  • Creating social media content
  • Work with the business to enhance marketing strategies 
  • Publicly speaking about the products, services and the business
  • Foster a generally positive image of the brand 

How To Become A Brand Ambassador

If you’ve decided you want an ambassador to represent your business, then it’s vital to get clear on your objectives and find the right fit for your business. 

When an ambassador agrees to come on board, they represent the business to the community. So, their actions, words, and choices need to be on brand with the businesses values. As a business owner, you will need to clearly communicate your expectations to the ambassador. When you do this, it leaves no room for assumptions and everyone is clear on their specific roles and responsibilities. 

Once you’ve decided on how you want the relationship to move forward, it’s best to have it cemented with a legal agreement.  

Do I Need A Brand Ambassador Contract? 

Yes, it’s crucial to have your agreement with your brand ambassador in writing, signed by both parties. When you’re working with a brand ambassador, you put your business’s reputation in the hands of another person- it’s important to be legally protected. Moreover, a clearly defined contract can help preempt any possible disputes or misunderstandings related to the scope of work, performance expectations, compensation, and other relevant terms.

A lot of matters are discussed when hiring a brand ambassador, so having everything in one place can help eliminate any confusion or misunderstandings in the future. Generally, a contract with a brand ambassador covers matters such as: 

  • The duration of the ambassador and business’s relationship  
  • The scope of task the ambassador is to complete
  • The compensation the ambassador is to receive
  • Terms and conditions for both parties  
  • Any perks the ambassador is entitled to 
  • Limitation of liability 
  • Grounds for termination 

A Brand Ambassador Agreement can be tailored to meet your unique needs. Our legal professionals are happy to draft one for you- so reach out if you’re thinking of hiring a brand ambassador for your business.  

On that note, when you’re working with a brand ambassador you may end up exposing internal parts of your business to them. This often happens naturally when you’re collaborating with another party, so it’s best to be prepared. Getting Confidentiality Clauses written in or having a Non-Disclosure Agreement is something you might want to consider looking into. Such agreements ensure that sensitive information related to your business operations, strategy, or customer base remains confidential. They offer protection against the potential damage that could result from unintentional or deliberate information leaks.

Do Brand Ambassadors Get Free Products?  

Most brand ambassadors do get products for free. 

Even though there isn’t a strict legal requirement for brand ambassadors to receive free products, in a lot of partnerships businesses will supply their ambassadors with their products for free. When they do this, the ambassador can use the product, wear it, utilise it and generally be seen out with it. 

You want to make sure the free products are kept within reason, after all you don’t want to be over supplying or getting your business taken advantage of! Providing free products not only incentivises the ambassadors but also fuels organic content creation. When ambassadors use and genuinely enjoy your products, their endorsements become more authentic, believable, and impactful.

It’s best to address matters such as free products and other perks in the Brand Ambassador Agreement you have with your ambassador. 

What About An Influencer Agreement?

If hiring a brand ambassador doesn’t seem like the right fit for your business but you are still seeking individuals to help promote your brand, engaging influencers is another option.

While having a brand ambassador typically entails a deeper, longer-term relationship closely connected with the brand, influencers don’t necessarily need to be as heavily intertwined with the business’s image and reputation. 

Instead, influencers are useful for short term partnerships that still have the objective of promoting the brand. Influencers often boast substantial social media followings. Businesses like to hire them to create content that supports their marketing initiatives. This allows for a more flexible and targeted approach to amplifying their brand visibility and engagement.

Hiring influencers could be your business’s gateway into getting a brand ambassador down the road or a simple marketing strategy. Either way, it’s wise to have a legal agreement in place with any influencers you hire. An Influencer Agreement can help solidify the deal and address matters such as payment, liability, non compete clauses and professional expectations. In addition to these, the agreement should consider content guidelines to ensure brand-aligned messaging, potential exclusivity clauses to prevent competitors from simultaneously using the same influencer, and clear terms regarding post frequency, platforms to be used, and metrics for success.

If you’re thinking of hiring an influencer, our legal experts are happy to help. 

Next Steps 

Brand ambassadors can be a great marketing strategy for your business but it is important you go into the relationship with the right legal protections. To summarise what we’ve discussed: 

  • Brand ambassadors are hired to represent the business to the wider community 
  • Their duties will vary however, ambassadors are often seen speaking about the product, creating social media content, shooting advertisement campaigns and generally creating brand awareness  
  • It’s important for business to bring an ambassador on board that aligns with the brands values and objectives 
  • Getting an Brand Ambassador Agreement in place can help protect the interest of both parties 
  • Brand ambassadors often get free products- it’s good to address this in your agreement with your ambassador so everyone knows what to expect 
  • Influencers can be a short term, more flexible alternative to a brand ambassador. If you’re thinking of going down this road, then it’s important to have an Influencer Agreement drawn up. 

If you would like a consultation on brand ambassador agreements or influencer agreements, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

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