In the era of hire and fire, should brands embrace long-term relationships with influencers?

New Delhi: Long cited as the remedy to concerns surrounding the authenticity of influencers when doing branded content, long-term deals between brands and influencers are a mixed blessing.

While some influencers prefer long-term contracts ensuring steady cash flow, brands picture long-term deals as a commitment that ties up resources.

So, the question of the hour is: To sign or not to sign long-term deals?

In a conversation with BuzzInContent.com, Kalyan Kumar, Co-founder and CEO of Klug Tech, said, “Brands aim to secure long-term deals primarily for financial benefits, such as bulk discounts from influencers. They assess the influencer’s popularity and follower count and then negotiate for a reduced rate per post by committing to a larger number of posts over the year. For instance, instead of paying Rs 30,000 per post, they might negotiate it down to Rs 15,000 or Rs 20,000 by agreeing to 10 posts annually.”

He opined that brands should ideally look at influencers who are growing fast by 100% or 200% and onboard them today so that they can be the brand ambassadors for tomorrow. 

Rachit Sharma, Head of Brand Solutions at Qoruz opined that long-term deals instills confidence in the creators and helps brands to get a maximum bang for their buck.

He also highlighted that the clauses mentioned in the contract determine if the deal is a win-win for both influencers and the brand. 

Defining that these clauses can be a deal breaker for influencers to take on long-term deals, he added “These contracts typically include clauses on content deliverables, exclusivity, compensation, and performance metrics.”

He added that over time, contracts have evolved to include more detailed expectations, such as content approval processes, adherence to brand guidelines, and compliance with advertising regulations.

Speaking of clauses, Shubham Singhal, Co-Founder and CEO of Dot Media mentioned a key trend that influencers are now less likely to demand exclusivity clauses. 

He said, “Rather than seeking upfront payments, many influencers prefer the security of long-term agreements, which often guarantee a fixed number of posts or content pieces throughout the year for a specific brand.” 

Such an approach allows creators to maintain creative freedom and work with multiple brands across different categories, while still enjoying the stability that comes with a long-term partnership. 

Sharma highlighted the growing trend of long-term collaborations, using Emami and Chef Pankaj Bhadouria as an example.

Bhadouria consistently creates food-related content for Emami, showcasing her belief in the product.

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A post shared by MasterChef Pankaj Bhadouria (@masterchefpankajbhadouria)

Brand and creator authenticity

Long-term collaborations need authenticity and trust but brands fear that creators may compromise their authenticity over time. 

Addressing this fear, Kumar suggests not bombarding the creator’s followers with a lot of branded posts as it is crucial to balance frequency and authenticity when engaging in long-term collaborations. 

He added, “Overexposure can lead to diminishing engagement as audiences tire of repetitive brand mentions.”

He opined that deep brand involvement and genuine passion from influencers are key. He cited the example of Coca-Cola’s strategy of integrating influencers into its community through exclusive events and perks to foster brand love.

Some brand categories that benefit from this approach include high-involvement categories like outdoor gear, automobiles, and sports drinks. 

“Ultimately, the brand’s involvement level and the influencer’s authentic connection are pivotal,” resolved Kumar.

Singhal added that long-term partnerships thrive with creators who are dedicated to their craft and authenticity. Compromising authenticity can harm their appeal across all collaborations. 

He added, “Brands should ensure a creator’s genuine investment in their career before committing to a long-term deal.”

Do’s and dont’s for brand-influencer synergy

Advising brands to steer away from influencers who have a knack for spreading fake news and are too politically inclined, Sharma mentioned the do’s and don't for brands.

Do's: Keep communication open either by email or Whatsapp. Be transparent about the campaign’s objective deliverables and compensation. 

Don’t: Ignore other creators from the same genre even if you have established a long-term relationship with one creator. Keeping multiple influencers in the campaign helps build brand authenticity. Also, do not micromanage as this might not go down well with some creators.

Adding the agency to the mix

It’s not just brands and influencers on whom the onus of forming authentic relationships lies but also agencies. 

Singhal believes that agencies should align the brand’s objectives with the creator’s vision, balancing respect for the creator’s voice with the brand’s needs.

He added, “Their role is crucial in fostering a partnership where both parties feel valued, leading to successful and sustainable collaborations.”

There is skepticism around forming a long-term relationship between brands and creators. Viral instances like pan masala brand partnerships with Hollywood celebrity and creator faking deaths to talk about a sensitive topic, further cement the notion that a few checkpoints need to be laid out. 

Sharma mentioned some checkpoints that might be of help: 

• Audience Alignment: Ensure the influencer’s audience matches the brand’s target demographics. Influencers tend to buy followers hence it becomes important for brands to know whether the person they are signing for long-term has a genuine audience or not.

• Content Quality: Review the influencer’s past content for quality and relevance.

• Engagement Rates: High engagement rates often indicate a loyal and active audience.

• Brand Fit: Brands should align with influencers’ values and styles and avoid creators who use extreme tactics, like faking death, to spread messages.

Another concern for brands is that influencers may post problematic content such as smoking, and nudity on their handles. A plausible solution to the problem is adding restrictive clauses to the contracts so that creators do not deviate from their ethical commitments.

Shedding light on these clauses, Sharma gave three key clauses brands could add to the contracts. 

The clauses are as follows: 

• Morals Clauses: Specify unacceptable behaviors and the consequences of violating these terms.

• Content Approval: Require pre-approval of all content before it is posted.

• Clear Guidelines: Provide detailed guidelines on acceptable content and brand representation with one creator. Keeping multiple influencers in the campaign helps build brand authenticity.

Content regulation

Sharing his thoughts on content regulation, Singhal added that it's crucial to maintain control over what is being shared to ensure it aligns with brand values. However, when it comes to an influencer’s normal posts, it's not appropriate for the brand to impose restrictions. 

He added, “If their overall content doesn’t resonate with your brand’s ethos, it’s better to choose not to collaborate with them rather than try to control their creative choice.”

Oversaturation of creators

Oversaturation is a major impediment for brands looking forward to signing long-term deals. Prolonged partnerships with the same influencers might lead to diminishing returns as the audience feels fatigued watching an influencer promote the same brand.

Speaking his mind on the subject of fatigue and oversaturation among followers, Kumar said, “The challenge with long-term influencer deals is maintaining their relevance. Long-term deals are beneficial when the influencer’s relevance to your category is high, ensuring consistent and credible promotion. However, if the same influencer repeatedly praises your product, it may lose credibility.”

He opined that influencers must maintain credibility by presenting the product in varied and authentic ways, avoiding a hard sell.

To mitigate such a situation, here’s what Singhal has to say, “When engaging in long-term collaborations with influencers, it's crucial to leverage their potential beyond just their social media profiles. Using an influencer's face in performance marketing, for instance, can significantly amplify the impact.”

He believes that content plays a pivotal role here and the agency responsible for creating this content must work closely with the influencer to ensure that the material remains fresh and engaging.

Offering a different perspective on oversaturation, Sharma suggests tying up with mid-tier influencers back and forth from the same genre.

Ideal influencers?

Kumar opined that the ideal influencer for a long-term brand-creator partnership would be undiscovered but growing influencers, like one with 70,000 followers today, who has been growing steadily. 

He said, “Their organic posts garner millions of likes, while branded posts still perform well, indicating their potential for long-term partnerships. Betting on such influencers early can yield disproportionate returns as they grow.”

He also opined that macro influencers who are at the top with millions of followers face low engagement on their branded posts. 

Expanding his thoughts on the same, he said, “As a brand, it’s crucial to spot emerging talent early, nurture their growth, and then move on to discover the next rising star but make sure the rising star is growing on the back of genuine followers as 58% influencers in India grow using fake followers.”

Finding flexibility for brands

No matter how much praise long-term deals gather, brands continue to feel that long-term collaboration ties up resources and hope for flexibility in their contracts.

Proposing a solution to the problem, Singhal opined that brands could opt for extended partnerships with a reduced number of posts and can strategically spread their campaigns across multiple seasons, festivals, and key events throughout the year. 

He added, “This approach allows them to maintain a consistent presence without overburdening their resources or requiring constant content production. Such arrangements also help brands save on overall costs.”

The influencer side of the story

It is important to note that it’s not just brands who are wary of long-term deals, it's also influencers who shy away from lengthy partnerships. 

Kumar highlighted that influencers often avoid long-term deals with brands because such agreements can limit their opportunities with other brands in the same category. For example, if an influencer has a long-term deal with L’Oreal, other brands like Lakmé may blacklist them, reducing their potential earnings. 

He also talked about how brands in certain categories are strict about exclusivity, which can hinder influencers from working with multiple brands and maximising their income. 

He also added, “However, influencers argue that promoting various brands for different products makes them more credible, as consumers typically use a mix of brands in their daily lives.”