Written by Angel Fletcher-Penfold • Published 8th November 2018 • 1 minute read

Yes – the headline is true, at least if your contract says so. Influencers are becoming increasingly valuable to businesses and Luka Sabbat, actor (and Kourtney Kardashian’s casual beau), learnt the hard way that an influencer contract is just the same as any other business contract as he is now being sued for $90,000, in the first high-profile case of its kind.

Sabbat was paid $45,000 by Snapchat’s PR agency (PRC) to promote Snap Spectacles; it was agreed that he would wear the glasses to Fashion Week twice and post three Instagram stories and one post for his 1.4 million followers to see. He also had to submit the posts to the PR agency for sign off and provide analytics of the post within 24 hours of posting. Once this was all completed, he would be given another $15,000 which would accumulate this contract to a value of $60,000.

Luka Sabbat only posted one story and post, furthermore, he failed to ask for approval from the agency or provide any analytics. This, of course, is a breach of contract and now the PR agency is asking for the fee they paid upfront, as well as $45,000 in damages.

PHA Social’s Senior Social Media Director, Hayley Coleby, highlighted the case as one to watch;

“It will be interesting to see if this case results in any changes to the usual protocol. Some publications have named the case as trivial, but when a business has sacrificed thousands of dollars, entered into a service level agreement and experienced a loss of expected sales, it is serious. It should make agencies more cautious when paying influencers upfront, but we will wait and see.”

This case has highlighted the importance of managing every interaction with influencers and choosing the right person is vital. Here at PHA we research and source the right influencer for your business and draw up a clear, concise contract that each party is happy with. If you need assistance managing your influencer strategy or would like to introduce an influencer to your business but you are unsure who or how, we are here to help.

Here at PHA, we have set up an array of influencer partnerships for our clients, ensuring that their brand values crossover with that of the influencer, eradicating any doubts of authenticity or trust. Feel free to contact us to discuss how you can start taking advantage of influencers today.