How a Business Hired a Lawyer to Review a Social Media Marketing Agreement in Michigan

If you're hiring an agency to handle your social media, your contract should do more than just list services. It should protect your business. Below are the key sections to focus on, why they matter, and how to make sure the agreement works in your favor. Scope of Services Be clear on what you're actually paying for. "Manage social media" is too vague. Instead, ask for specifics. For example: "Agency will create 12 Instagram posts, 4 video reels, and 1 monthly performance report." If the contract includes paid advertising, split the ad spend from the agency’s fees. Set a limit on how much the agency can spend without getting your approval in writing. This keeps you in control and avoids unexpected charges. Content Ownership and Intellectual Property Everything the agency creates for your brand (images, videos, captions, even the working files) should be yours once it’s paid for. Ask for a "work made for hire" clause and a backup assignment of rights. It's okay if the agency keeps ownership of its own templates or tools, but you should have a forever license to use anything they include in your content. Also, they should be responsible for making sure any music, stock photos, or fonts are legally licensed, and they should cover you if anything they use causes legal trouble. Account Access and Control Make sure your business always owns its social media accounts. The agency can be added as a user, but you should stay the account owner. At the end of the relationship, the contract should require them to return or export all data, ad accounts, passwords, and analytics. This prevents them from locking you out later. Confidentiality and Data Protection Your agreement should include a two-way confidentiality clause that protects sensitive business info like customer data, ad strategy, and performance reports. This protection should last even after the contract ends, usually for two to five years. If your business handles personal data from California or the EU, the agency should agree to follow privacy laws like the CCPA and GDPR. Termination Your contract should give you two clear ways out: (1) a termination for cause that lets either side end the agreement if the other party breaches it and doesn’t fix the issue within a set time (usually 10 to 30 days), and (2) a termination for convenience that lets you walk away for any reason, typically with 30 days’ written notice. Payment and Expenses Spell out how much you're paying, when payments are due, and what’s included. A flat monthly retainer is common. Ad spend should be billed separately and backed by receipts. If other costs come up (like influencer fees or stock photos) make sure the contract says who covers them. It’s also fair for the agency to charge late fees or pause work if they haven’t been paid after a certain number of days. Liability and Risk Management The agency should protect you if something goes wrong on their end, like using copyrighted material without permission or running ads that break the rules. For bigger contracts, ask them to carry liability insurance. Most agencies will want to limit how much they’re on the hook for, usually just the amount you’ve paid them. That’s standard, but you can ask for exceptions when it comes to things like confidentiality breaches or intentional wrongdoing. Also, include a clause that says if a PR crisis hits, they’ll notify you right away and stop posting until you give the green light. Compliance with Laws and Platform Rules The agency should agree to follow all advertising laws, platform rules, and FTC guidelines. If they’re working with influencers, the contract should require proper disclosures like “#ad” or “sponsored.” This keeps your brand out of legal trouble and makes the agency responsible if something slips through. Independent Contractor Status Make it clear that the agency isn’t your employee. This keeps you protected from tax issues and makes it clear they’re responsible for their own team, benefits, and taxes. Dispute Resolution and Governing Law Pick your home state’s laws to govern the agreement. It’s smart to require a step like mediation before either party can sue. It can save a lot of time and money if a disagreement comes up. Sample Clauses You Can Use: Ownership Clause: “All content, graphics, videos, captions, and advertising materials created by Agency for Client shall be deemed works made for hire. To the extent any such materials do not qualify as works made for hire, Agency hereby assigns all right, title, and interest in such materials to Client upon full payment.” Termination Clause: “Either party may terminate this Agreement for convenience upon 30 days’ written notice. Upon termination, Agency shall deliver to Client all content, data, credentials, and materials created or maintained on Client’s behalf within 5 business days.” The Final Analysis Whether you need a quick contract review or full legal support, Contracts Counsel’s experienced lawyers are ready to guide you every step of the way. They’ll make sure your business is protected and your social media marketing partnership starts on solid legal ground.