Once a novice approach, influencer marketing has become a vital tactic for many brands’ marketing efforts. It has matured into a valid form of marketing focusing on authenticity and personalized experiences. As multiple brands realized the power of content creators, marketing trailblazers started searching for innovative strategies to amplify their partnership’s impact. One of them was introducing exclusivity in influencer collaborations.
Exclusivity in influencer marketing is a method applied by an increasing number of businesses. It demonstrates credibility, strengthens a brand’s position in its sector, and ensures reliable and consistent messaging. Yet, exclusivity is not a magic spell. It has its set of challenges if not planned and executed carefully.
This article will focus on the types of exclusivity–yes, there are several–the benefits and drawbacks of exclusive agreements, and how you should structure one. Before we delve into the specifics, we must warn you: an exclusivity clause doesn’t replace a contract; it is part of it.
Now that we've cleared that up, let's get started!
A Definition and Types of Exclusivity in Influencer Marketing
In influencer marketing, exclusivity refers to a type of agreement between a brand and an influencer where the influencer is restricted from working with other companies for a particular period. Brands may determine exclusivity in a number of ways. For example, we call it full exclusivity when a brand requests that the influencer doesn’t work with any other brands for a particular period of time.
In the case of geographical exclusivity, brands can ask the influencer not to endorse other companies in a specific location or region, such as a city or a country. An agreement of this type ensures localized brand dominance and may be used for local product launches and regional events.
Other businesses stipulate in the exclusivity clause that the influencer can’t advertise similar and complementary products and services. Product or service exclusivity enables companies to make a difference in crowded markets. Besides, their messaging and representation will be consistent.
Some brands want to reach specific audiences that are active on a certain platform, so they can create a market channel exclusivity agreement with the creator. This means, that the influencer can’t promote any other brand or product in the defined social media platform.
Brands may avoid their message being diluted if they require industry or category exclusivity from the content creator. Due to such an agreement, the influencer can’t collaborate with businesses from the same sector. Companies can specify which direct and indirect competitors the individual can’t work with.
Pros and Cons of Exclusive Influencer Partnerships
Exclusivity in influencer marketing comes with many benefits as well as challenges. Let's review them so that you can decide whether you should enter into such an agreement.
Pros
If your influencer relationship is longer and forbids the creator to work with any other business in your industry, the agreement will ensure a strong brand association and messaging. The creator’s content will remain closely aligned with your brand values and communication. Your company’s consistent representation by a singular person will help cement your brand in users’ memories.
Exclusivity entails a deeper understanding of the business and its products, hence influencers’ promotions become more convincing and authentic. Since the creator is committed to only one company, the audience is more likely to trust these endorsements, positioning the brand as a leader in its sector.
Exclusive partnerships can help companies gain a competitive edge over other industry players. On the one hand, the creator’s unique voice will be associated with the brand, differentiating itself from others. On the other hand, rival businesses won’t be able to harness the same influencer’s impact on users’ purchasing decisions.
Since the success of the campaign depends on both of you, exclusivity creates a much closer collaboration between the business and the influencer. This enables both parties to understand each other's goals and needs and results in higher-quality content that resonates with the target audience.
Cons
The longer and stricter the exclusivity is the higher fees influencers can charge. Numerous influencers accept gigs from multiple brands to earn a living from being content creators. If an influencer will be working for your company exclusively, this means they can’t collaborate with others. Thus, you must compensate the influencer for this loss of revenue.
Influencers can also give various rates depending on the industry. Content creators in oversaturated markets - such as fashion and beauty - will probably charge higher rates, because there is a high probability that they lose another deal while they are bound to your brand. However, creators in a tight niche - for example, individuals specializing in organic gardening - will determine lower fees.
While exclusivity is good for consistent brand representation, it isn’t so good for exposure and reach. If your exclusivity is tied to a specific platform, you miss out on influencer audiences in other channels. Too long exclusivity is not good for visibility and reach either because the same community of users will see the promotions over and over.
Following from the above, the creator’s audience will more likely become ad fatigued over time, because they are exposed to the same brand repeatedly. Over-saturation will end in a decrease in engagement and conversions, and it even can lead to follower loss for both parties.
Finally, it takes a lot of effort and communication to maintain the coherence in messaging and stay enthusiastic over time. Plus, relying on a single influencer carries the risk of reputational damage if they face controversy.
How to Structure an Exclusivity Agreement
Exclusivity is part of your contract with the influencer. Yes, we strongly recommend you draw up a written agreement where you outline the purpose, scope, and length of the partnership. In your contract, you may dedicate a clause for exclusivity and establish the following points.
The scope of exclusivity: Determine the type of exclusivity. Is it full, competitor-focused, product-specific, or geographical? If it is a competitor- or product-centric then clearly specify what competitors the influencer can’t team up with or what competing products they can’t promote during your collaboration.
Duration: Define the start and end dates of the exclusivity period. You may include options and terms of renewal or extension.
Compensation: Payment is already a crucial part of a contract, but exclusivity necessitates a detailed description of the payment structure. Do you offer an increased fee in exchange for sponsored content or performance-based incentives, samples, free services, or other perks?
Exclusivity breach: Lay out what consequences an influencer has to face if they break the exclusivity agreement. Is it going to be a financial penalty, termination of the contract, or legal proceedings? Determine how you will solve disputes: through mediation, arbitration, or another way.
Termination: Clarify how parties can end the exclusivity agreement outlining the notice of period for termination, etc. Specify what conditions will automatically terminate the exclusivity, such as breach, failure to meet performance necessities, and so on.
Amendments: Any change must be agreed upon by both parties. Detail the circumstances that necessitate modifications in the exclusivity agreement, such as length changes and performance requirements.
Signatures: The exclusivity is going to be an integral part of your contract, yet, we recommend both parties sign each page separately, including the exclusivity clause.
You can reiterate additional sections in the exclusivity clause.
Content development and approval: You will already provide a detailed summary of what and how many content types you require from the influencer in the contract. You may reiterate them in the exclusivity clause of the agreement or refer to the contract. You can also include a reference to the content review and approval process.
Metrics: You may restate the metrics you will measure during the campaign. If a higher compensation is linked to the influencer’s performance, for example, the creator receives a 15% commission after every purchase or a 10% commission after every 1000 views, then it is logical to include the metrics you want to measure.
Exclusivity in Influencer Marketing in a Nutshell
Exclusivity doesn’t substitute a contract between your business and the content creator. It is a clause or a section of a formal agreement between you.
Specify the type and length of exclusivity.
Consider your campaign’s goals and plan the terms of your exclusivity agreement in accordance with them. Don't force a market channel exclusivity if you want to expand your reach.
Strive to build a long and good working relationship with creators.
Lay down the terms and conditions of the exclusivity agreement in a written document.
Try to smooth out conflicts that arise in a friendly but firm manner.
Make sure that both parties agree to all points.
Leverage exclusive influencer partnerships and watch your audience engagement and market share increase!
