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A Sponsorship Agreement is a document through which a sponsor (this is usually a business) provides an opportunity for an influencer (this is usually an individual) to receive funds by somehow promoting the sponsor's business. There are two main types of sponsor agreements: (1) those where the influencer promotes the sponsor's goods or services and in exchange receives a commission or fee per product sold and (2) those where the sponsor provides a fixed monetary amount for the influencer and in exchange receives publicity or promotion.
In a Sponsorship Agreement, the parties will outline the terms of the relationship between them. Usually, these documents will cover everything from the exact type of relationship to what the influencer is expected to do for the promotion, in detail.
This document is similar to an Affiliate Agreement but different in that sponsorships are generally much closer working relationships than affiliates. Here, the details of the sponsorship will cover, in depth, exactly what the influencer's obligations are in a way an Affiliate Agreement usually does not.
How to use this document
This document can be used for sponsorships in which the influencer will be displaying or wearing a sponsor's goods or a sponsorship in which the sponsor is simply providing financial support to the influencer.
Here, the parties will enter the most simple but important information: identifying details of the sponsor and influencer, what type of sponsorship, the details of the payment, and the specifics of what influencer is required to do.
There are also standard clauses that cover the parties in case something goes wrong, such as a dispute or third-party claim.
After this document is filled out with the most information possible, it is a good idea for both parties to sign it and each keep a copy.
Sponsor agreements in the United States are covered by multiple statutes and governing bodies: each state's individual laws will cover the commercial contract principles, but relationships between sponsors and influencers are subject to the Federal Trade Commission's guidelines on endorsements.
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