The #creatoreconomy is booming especially on platforms like LinkedIn and TikTok!
Brands are continuously partnering with nano and micro-influencers who are excited about the opportunities but are not knowledgeable about managing the behind-the-scenes of brand deals including contracts, negotiations, rates, payments, etc.
I've reviewed and negotiated 100+ brand partnership agreements for creators and influencers.
If you're a creator who's new to closing brand deals or you've closed a good number of deals but are unsure about what you're actually agreeing to and signing, read on!
Here are 4 major deal terms and what to look out for in #brandpartnership agreements for creators and influencers:
TERM LENGTH
Every partnership has a defined start and end date. This is considered the term length. It's important to be aware of the specified length (which can be negotiated) because all other clauses (exclusivity, usage, etc.) are tied to the term length.
Always inquire whether the campaign is for a specific activation month or holiday (like Christmas or Black History Month) and ensure the term length does not go beyond that month or timeframe.
You should never agree to an arbitrarily long term because this will allow the brand to use or promote your content for much longer than needed plus it may conflict with or exclude you from other opportunities in similar categories (think: you have a deal with Dell and now can't work with Lenovo who wanted to contract you for a 5-figure campaign).
Tip: Never agree to anything in perpetuity. I actually recommend you use the 'find' function in the contract document and see if the words 'perpetuity' or 'perpetual' show up. You never want a brand to be able to use your image, likeness, or content forever - because they're definitely not paying you for that!
EXCLUSIVITY CLAUSES
If you're asked to promote a product or brand as part of your partnership, there's a high probability that you'll be asked to agree to an exclusivity period.
This means that for a specified timeframe, you're not allowed to promote competing brands or products.
Always ask the brand to provide a detailed list of all brands included in this clause and pay close attention to the exclusivity period (which may extend beyond the term length).
Exclusivity is important for brands because they want to maintain authenticity and integrity. If you're promoting their product today and a competitor's tomorrow, is your recommendation authentic?
Tip: Only agree to exclusivity if the campaign truly requires it and make sure to add an additional fee to your rate when you agree to exclusivity because you're unable to accept deals (that may be larger) from a competing brand.
USAGE RIGHTS
Usage Rights in a contract cover how and where the brand can use and promote the content you've created as part of the partnership. It also applies to the creator's name, image, and likeness (aka NIL).
Most brand partnerships outline that all content created is Work for Hire, meaning you don't own it, the brand does. Nonetheless, there should be a set timeframe in which the content can be used and promoted.
Tip: It's very important that you're familiar with the different terms that show up in Usage Rights clauses. I recommend you research and learn more about whitelisting, boosting, amplification, organic, and paid media. Anything beyond allowing the brand to organically amplify the content should come with additional compensation.
PAYMENT TERMS
Within your contract should be a section titled Compensation or Payments.
Here, you'll find the agreed-upon fee for the partnership as well as details on when and how payment will be made. Many brands and agencies will try to give themselves a buffer to pay you for services you have already completed. So while they're using your content to drive engagement or sales, you're waiting for the money to hit your account.
Always try to negotiate for a 25-50% payment upon contract execution and final payment within 15 or (max.) 30 days of completion of all services. You want to avoid NET60 or NET90 payment terms because this would allow the brand to delay payment until 60 or 90 days AFTER invoicing.
Also negotiate how you want to get paid, whether via ACH/wire or physical check. RUN if they offer to pay you via PayPal.
Tip: You can always try to negotiate for 'payment upon receipt' or payout of multiple installments throughout the term length for longer-term partnerships (3+ months) to avoid doing work without getting paid.
While it may make sense for you to eventually seek out a manager or lawyer to help with contracts, having a baseline knowledge of what you're agreeing to is always recommended. Knowledge (once applied) is power, right?!
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