Many companies have started using brand deals because it allows them to reach bigger audiences. A brand deal is a partnership between a company and an influential figure to market a certain product or service to targeted audiences and convey the company’s message or meet sales goals. Four common stages to executing a brand deal are identified and explained below. 

Step One: Brainstorming a marketing plan

Before initiating a brand deal, a company must identify its target audience and specific goals. Goals for each company can vary from increasing sales for a certain product to establishing a presence in global markets. The marketing team or outside advertising agencies research the company’s customers, product sales and other data to identify goals the company wants to achieve through its marketing plan. Next, members of the company brainstorm what the brand deal will consist of, including who they will work with based on the company’s core values. 

Step Two: Choosing an influencer 

A brand deal can also be initiated by the influencer reaching out to a company to create a partnership. Companies choose influencers based on the influencer’s ability to achieve specific objectives, such as reaching target audiences or embodying what their consumers aspire to be. A company’s social media manager will get in contact with either the influencer or the influencer’s team to prepare the deal. An influencer and the company will negotiate to decide whether the two would like to partner up and the expectations for both sides. 

Step Three: Negotiating the deal

After both the company and the influencer agree to do the brand deal, the two must create a contract that clearly outlines the terms both parties must abide by to avoid potential disputes. Contracts specifically include an influencer’s compensation, exact actions the influencer must take, a timeline for completing the deal and a morals clause. This clause consists of the company’s moral standards. If the influencer does not follow them, the partnership can be dissolved because the company was misrepresented. 

Step Four: Analyzing the results

Once the contract and legal proceedings are finished, the company must wait and monitor the influencer’s platforms during the contracted timeline. Most companies will find a method to measure the impact of the brand deal, but the results cannot always be quantified, making the process difficult. To see how it benefits from the brand deal, the company can receive reports about the influencer’s social media reach, track the amount of users visiting the company’s website through social media and monitor sales before and after the deal. Once the contracted time is over, the company and influencer may choose whether they would like to continue the partnership.