Influencer Management Contracts: Terms and Red Flags

An influencer management contract sets the manager's services, the commission and the income it covers, the length of the deal, what the manager earns after it ends and how either side can leave. Read those 5 terms first, because that's where the red flags sit: upfront fees, commission with no end date and approvals you don't control.

This guide covers each term, a fair version next to a red-flag version, and how to exit a contract you've already signed. 1DS Management represents 107 creators, athletes and entrepreneurs, and our commission runs 10% to 30%.

What should an influencer management contract include?

A management contract should name the services, the commission and its base, the term, post-term commission, how money moves, who approves deals, what happens if your manager leaves, how either side can end it and who owns what. If a term isn't in writing, expect to argue about it later.

Here's each clause, with a fair version and the version to push back on:

If you also work with an agent, our guide to talent managers and agents covers how the 2 roles split.

How should commission work?

Commission should be a stated percentage of named income streams, paid on money that actually reaches you. Ours runs 10% to 30%, and our guide to how much influencer managers take covers how rates compare.

What it applies to

List the income streams the commission covers: brand deals, platform revenue, affiliate income, products, appearances and licensing. Then ask about the edges, like deals you found yourself, deals signed before the contract and income from a business you own.

Gross or net

Ask whether commission is calculated on the gross fee or after costs. A brand fee that includes production, travel or paid crew should carry commission on what's left after the approved costs you paid out, and the contract should say so.

How money moves

The contract should say who invoices brands, where the money lands and how many days after the brand pays you get your share. Ask for monthly statements and the right to audit the books.

Ask whether the manager also takes a fee or margin from brands on your deals. If they do, it should be disclosed to you in writing, since it's money earned on your name.

How long should the term be, and what happens after it ends?

Pfeiffer Law's guide (2023) says an initial term is generally 1 to 3 years and sometimes as long as 5. It advises influencers to insist on a trial period of at least 3 months, or better, 6.

If the contract renews automatically, you'll have to give notice to end it, so put the notice date in your calendar the day you sign.

Post-term commission, often called a sunset clause, sets what the manager earns after the contract ends. Pfeiffer's guide to termination (2023) says compensation after termination is subject to negotiation, with no set industry standard.

So negotiate it. A fair sunset covers deals signed or substantially negotiated during the term, steps the rate down and ends on a fixed date, and it says whether renewals of those deals count.

Which red flags should you fix before you sign?

Fix any clause that charges you before you earn, pays the manager forever, lets someone sign for you or leaves you no way out. These are the ones to look for.

Upfront fees

Commission should be paid on money that actually reaches you, and nothing should be due before you earn. A sign-up fee, a "development" fee or paid coaching as a condition of representation is the red flag.

Commission on everything, forever

Commission on all income from any source pays the manager for work they didn't do, especially on deals you brought in or signed before the contract. So does a sunset clause with no end date.

Signing authority

A power of attorney, or any clause letting the manager sign deals for you, means you can be bound to terms you never saw. Keep signing authority yourself, and require written approval for every deal, rate, usage window and exclusivity term.

No way out

Pfeiffer notes that in most management agreements the influencer can terminate only for cause, and its examples of cause include the agency failing to deliver promised brand deals or taking more commission than agreed. Ask for a performance out, a key person clause and a notice-and-cure period, so a breach can end the deal.

Ownership of your accounts

Your handles, logins, content and brand relationships should stay yours during the term and after it. A clause that gives the manager ownership or control of your accounts or intellectual property is a reason to walk.

How do you get out of a management contract?

Read the termination clause, give written notice the way it requires and settle post-term commission in writing. If the manager breached the contract, document the breach and talk to a lawyer before you send anything.

1. Find the termination, notice and cure terms, plus any performance out or key person clause.
2. Write down every breach with dates, such as late payouts, deals you didn't approve or commission above the agreed rate.
3. Send notice exactly as the contract requires, in writing, and keep proof of delivery.
4. Agree in writing on post-term commission: which deals it covers, the rate and the end date.
5. Collect your logins, files, brand contacts and payment records, and change the passwords on any shared accounts.

For a full picture of the job a manager should be doing in return, see what a talent manager does. Talent Management and Legal & Business Affairs are 2 of our 10 services, and if you're comparing managers, you can apply for representation.