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So you’re scrolling through Instagram in 2025 and you see Kylie Jenner’s “paid partnership” ad with Adidas. She’s making at least one million dollars per sponsored Instagram post. As a company, if you’re thinking of amping up your marketing efforts, you might have heard about the ever-evolving concept of influencer marketing.
Influencer marketing is a form of social media marketing where influencers – whether as individuals or organisations – endorse products and services through their social media channels. In 2025, this industry remains a multi‐billion dollar powerhouse, capable of increasing traffic, generating buzz, and significantly boosting your reputation and credibility. If you’re new to influencer marketing, it’s natural to 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 not only secures the deal, but also protects you and your brand reputation as you step into innovative digital advertising methods.
What Are The Risks Of Engaging An Influencer?
Here are some key considerations to keep in mind when you’re thinking about working with an influencer:
Fake Followers
It’s important for social media marketers to realise that some influencers purchase followers or use bots to inflate their numbers. Even if an influencer boasts a huge following, you should always consider the possibility that a significant portion of those followers might be inauthentic. Ensuring transparency by using bot analytics tools or statistics websites such as Social Blade can help you verify the legitimacy of an influencer’s audience.
If you notice sudden, unexplained spikes in follower numbers that don’t coincide with significant events, it might be a red flag that warrants further investigation.
Inconsistent Content Strategy
Managing a social media campaign with multiple contributors can sometimes lead to confusion. When several creators are involved in developing marketing briefs, crafting captions, scheduling posts, and ensuring content goes live on time, miscommunications can easily occur.
Even if you have a clear vision of your campaign, your influencer may interpret it differently. Always ensure that every instruction you provide is explicit and consistent with your brand identity. For further tips on structuring your campaign, you might also find our guide on online business privacy and content management helpful.
Two Words: Fyre Festival
If you missed the Netflix documentary, let us fill you in! Fyre Festival remains one of the most infamous cautionary tales in influencer marketing. Promoted by multiple influencers and social media titans without any concrete evidence of the event’s feasibility, it promised extravagant beachside getaways only to deliver chaotic conditions such as missing luggage, inadequate accommodation (tents meant for disaster relief), and even encounters with feral dogs. This debacle not only left festival-goers stranded, but also tarnished the reputations of several influencers who endorsed the event.
Scandals like these underline the importance of ensuring clarity and transparency between you and your influencer, especially when it comes to what is being promised to the audience. In today’s digital age, where content can go viral in minutes, every detail matters.
This was particularly evident with YouTuber PewDiePie, whose inclusion of controversial content led to the loss of a major sponsorship with Disney’s Maker Studios. Such instances are a stark reminder that the wrong message from an influencer can potentially harm your brand’s reputation immensely.
Looking ahead to 2025, trends such as virtual influencers and AI-generated content are on the rise. However, these innovations come with their own set of challenges regarding authenticity and accountability. It’s more important than ever to remain vigilant about the credentials and content practices of those you engage. For insights on navigating the legal complexities of emerging digital trends, you might find our article on the legal side of ChatGPT informative.
What Do I Need To Know About Influencer Marketing Laws?
Whether you are a brand looking to collaborate with an influencer or an influencer promoting a product, understanding the legal landscape of these relationships is vital. In 2025, regulatory bodies continue to enforce strict guidelines to ensure transparency in advertising.
The Australian Association of National Advertisers Code of Ethics mandates that influencers clearly disclose if a post is a paid endorsement. This requirement, while non-binding, is supplemented by the Competition and Consumer Act, which can classify nondisclosure as misleading and deceptive conduct.
Failure to disclose paid promotions can lead to legal repercussions, damaging both the influencer’s credibility and your brand’s reputation. A comprehensive Influencer Agreement, as mentioned earlier, is essential to mitigate these risks.
Things To Consider In Influencer Agreements
Despite the risks, influencers remain a powerful tool for brand promotion. To maximise the benefits of these partnerships and avoid potential pitfalls, it’s crucial to have a detailed Influencer Agreement. Here are some key points to consider when putting together your agreement:
Setting Clear Expectations For Work And Remuneration
Clarify the scope of work expected from your influencer right from the start. Will you be assisting with copy and captions, or do you expect the influencer to craft their own content in line with your brand guidelines? Every detail should be outlined clearly.
Remuneration is another critical factor. Discuss whether payment will be per post, per campaign, or through a retainer setup. Transparent terms related to payment and work scope help prevent misunderstandings later on. For more on structuring contracts, you might also explore our article on contract drafting.
Who Owns The Photos The Influencer Is Posting?
Copyright and intellectual property are key considerations when it comes to the content created by influencers. Typically, copyright is owned by the creator, but when content is shared on platforms like Instagram, users grant the platform a licence to use it. This can complicate ownership issues, especially if your brand ultimately wants to retain full rights to the imagery.
It’s critical to decide whether the content will be owned by your brand, the influencer, or remain bound by the platform’s rules. For additional resources on protecting your brand’s intellectual property, check out our guide on trademark protection.
Copyright Infringement In Influencer Marketing
If an influencer uses imagery or music that infringes on somebody else’s copyright, your brand could potentially be dragged into legal disputes. One early case involved a suit brought by Ultra Records against influencer Michelle Phan for unauthorised use of background music. Although the matter was settled, it set a precedent for the risks related to copyright infringement in influencer marketing.
To fully safeguard your business, ensure that your Influencer Agreement addresses liability for any intellectual property infringements. For more detailed advice, our resources on IP disputes might prove invaluable.
Is The Influencer An Independent Contractor Or An Employee?
Deciding whether to engage an influencer as an independent contractor or an employee is a key consideration. This classification affects not only taxation and Superannuation obligations but also the degree of control you have over the influencer’s work.
If the influencer is to receive ongoing work and operate under your direction, they may be classified as an employee. Conversely, if they are granted the creative freedom to produce content their own way, an independent contractor classification is more appropriate. The Fair Work Ombudsman offers further guidance on this distinction.
Exclusivity: Can The Influencer Work With Your Competitors?
Exclusivity terms are another important element in your agreement. Discuss whether the influencer will be allowed to create content for your competitors or if their posts should exclusively feature your brand. Such exclusivity clauses help secure your unique brand identity and prevent mixed messaging.
Working these restrictions into your agreement ensures that both parties clearly understand the boundaries around content creation and brand representation.
Talk To A Lawyer
Having a comprehensive Influencer Agreement is essential to protect your brand and secure your revenue streams. Whether you are a brand engaging an influencer or an influencer promoting a brand, our team at Sprintlaw is here to help!
If you have any questions or think you might need an Influencer Agreement, please call us on 1800 730 617 or email team@sprintlaw.com.au.
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