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Creator Brand Deals and Contracts
While AdSense is great passive income, brand deals are the bread and butter for most creators on YouTube, TikTok, and Instagram. But when it comes to negotiating contracts, things can get tricky.
Every deal and contract is different, and what works for one creator might not work for another. But there are some key items that creators in all industries and across all platforms should know about.
From charging for exclusivity rights and rush jobs, to checking for specific wording, here are what creators need to know about negotiating brand deals and contracts.
What Creators Can Charge MORE for in Brand Deals
Sometimes, brands will ask creators for the world – without properly compensating them. Especially when working with brands for the first time, creators need to know there are certain things that they can actually charge more for.
Here are 4 things creators can actually charge brands MORE for during contract negotiations.
1. Rush jobs & seasonality
If a brand is asking a creator to deliver a project last minute, definitely charge extra, especially if it’s during busy times like the holidays.
There is a lot of planning that goes into content creation and brand deals – it can take weeks, months, maybe even years. If a brand is asking for deliverables on a tight deadline, you’ll basically have to focus exclusively on that at the expense of other projects, which is why creators can charge more for rush jobs.
Additionally, if a brand wants to collab during the holiday season – aka the busiest time of year – creators can also charge a premium.
2. Exclusivity
Exclusivity is when a brand says you can’t promote their competitors and/or competitors’ products (and always, always, always ask for a specific list of what you can’t promote).
While it makes sense why a brand wouldn’t want creators promoting the competition at the same time they’re promoting them, most creators juggle multiple brand deals and collaborations at the same time. Working exclusively with one brand comes at a cost to creators because you’re essentially losing out on other potential deals. So, it’s totally reasonable to be compensated for that opportunity cost.
3. Usage rights
Generally, creators own their content, and brands are just licensing your content for their own use within the agreed upon terms. If a brand wants to use their content beyond those terms, like using it for a paid media campaign or changing the content in some way, creators should charge more for that.
4. Whitelisting
Whitelisting is when a brand puts their own ad spend behind a creator’s sponsored content to turn into a paid ad. The difference is that it’s coming from your account, so they’re using name, account, and likeness to generate sales.
Contract Clauses Every Creator Should Include
Negotiating brand deals can be tricky for creators. But there are a few easy clauses that every creator should include in their contracts that will go a long way in protecting them (and their finances).
1. Late payment fee
Creators need to budget, like everyone else, and getting paid on time is key. Most businesses use standard net-30 payment terms, meaning you won’t receive payment until 30 days after you’ve submitted your deliverables.
That’s already a long time to wait, but sometimes brands can be even slower to pay, which can be detrimental. To keep brands accountable, creators should include a late payment fee, usually 1-2% of your total fee, for each month that payment is late.
2. Termination clause, aka a kill fee
Sometimes, creators will put in the work but then a brand decides to pull the plug on the project or collab – you still need to be compensated for the work you did do, even if it wasn’t completed.
Typically, termination clauses (or kill fees) are anywhere from 25-100% of the original fee, depending on what stage you’re at (you should also include these specifics in your contract). General rule of thumb is that the later a brand terminates a deal, the higher the kill fee a creator can receive.
3. Force majeure clause, aka act of God
Imagine a hurricane takes out your house – or even worse, your internet – and you can’t complete your contractual obligations. Having a force majeure clause will protect creators from liability when stuff like that happens.
Contract Red Flags in Brand Deals
Most brands have their own interests at the forefront, and some might try to slip some less-than-ethical terms into their creators' contracts, without the proper compensation to match.
Here are a few red flags creators should look out for in their brand deal contracts.
1. The term “in perpetuity” in regards to usage rights
“In perpetuity” basically means the brand has the right to use your content forever. There’s nothing technically wrong with that – except sometimes a brand will sneak that in there without trying to properly compensate creators.
Brand deals typically have a limited time frame. But if a brand really does want the rights to use your content in perpetuity, creators should and can charge considerably more.
2. Vaguely worded exclusivity requests
If a brand includes anything like “including but not limited to” in the contract – that’s a major red flag because that basically gives brands power to nix almost anything. Say, another brand – one that was not specifically listed in the contract but in the same broader industry – approaches you for a collab. The current brand you’re under contract with has the power to nix that deal, even if the product and sponsorship terms are different.
Creators should always ask for a specific list of competitors and products so that the expectations between you and the sponsoring brand are clear.
3. Short timelines
Creators should always know the expected timeline for deliverables because sometimes brands will ask for things with little to no notice. That can hurt creators because they’ve probably got their content and sponsorship calendar scheduled out, which they now have to overhaul to meet these new deadlines.
Plus creators need to know if it’s a rush job so they can also charge higher rates for that brand deal.
