The rapid growth of influencer marketing has blurred the lines between traditional business relationships. Brands, agencies, and influencers often work together under flexible terms, but that flexibility raises an important legal and practical question: is the influencer an independent contractor providing services, or is the influencer a client of a marketing or PR firm? The answer matters, because it dictates who controls the relationship, who owns the content, and who is responsible for tax and legal obligations.
Independent Contractor: Influencer as Service Provider
When an influencer signs on to create sponsored posts, appear at events, or provide content under specific deliverables, they are usually treated as an independent contractor. In this scenario, the brand (or PR firm) engages the influencer to perform services, much like hiring a freelance photographer or writer.
As an independent contractor, the influencer is responsible for paying their own taxes, covering business expenses, and setting their creative process within the boundaries of the contract. The brand or agency defines what needs to be done, often referred to as deliverables (such as the number of posts or required hashtags), but the influencer ultimately controls how they deliver the work. This arrangement is common in “one-off” partnerships, campaign-based collaborations, or when influencers are hired for their creative output.
Client: Influencer as the Customer
The dynamic shifts when an influencer hires a PR or marketing agency to represent them, secure brand deals, or manage their image. In this setup, the influencer is the client, not the contractor. The influencer pays for professional services, and the agency works to advance the influencer’s business interests.
This relationship is more like a traditional talent-representation model, where the agency negotiates deals, handles communications, and provides strategy. Here, the influencer is not providing a service to the firm but is instead purchasing their own service. This is often the case for influencers who have grown beyond handling partnerships on their own and need professional management to scale their brand.
Why the Distinction Matters
Understanding the difference between independent contractor and client relationships is more than just semantics. It affects:
- Taxes and Compliance: Independent contractors receive 1099s and must handle self-employment taxes, while clients pay fees for agency services. Misclassification can lead to IRS scrutiny.
- Control and Decision-Making: If the influencer is a contractor, the brand sets terms; if the influencer is a client, the influencer drives decisions and strategy.
- Liability and Ownership: Contracts should clearly state who owns content, who assumes risk for regulatory compliance (like FTC disclosures), and how disputes will be handled.
Best Practices for Clarity
To avoid confusion, written contracts should spell out the nature of the relationship from the start. If the influencer is a contractor, the agreement should detail deliverables, timelines, and compensation. If the influencer is a client, the contract should outline the services being provided, fees, and the scope of representation.
PR firms, agencies, and brands should also revisit their agreements periodically as influencer relationships evolve. What starts as a one-time contractor arrangement can quickly grow into an ongoing management relationship, and the paperwork needs to reflect that shift. Contact Romano Law today for guidance on how to navigate this growing area of employment.
Contributions to this blog by Kennedy McKinney.