5 Crucial Terms Every Podcast Sponsorship Contract Should Have
Want to know which essential terms your podcast sponsorship contract should have? These are the most crucial provisions every podcaster and sponsor needs.
Getting your podcast sponsored or becoming a sponsor is the next level in your business, and if you're anything like me, you are researching everything you need to ensure you have everything you need to cover everything so the sponsorship goes smoothly and you are protected. As a lawyer myself who drafts contracts for podcasters and brands like you, I am giving you the crucial terms your podcast sponsorship contract must have to be legally protected and make the collab crystal clear.
You will learn about all the necessary terms your podcast sponsorship contract needs for all types of podcast sponsorship deals, and you will know what to look for in any podcast advertising contract you receive or podcast advertising contract template you buy.
After learning about all the essential terms for your podcast sponsorship contract, you will be ensured of a great relationship with the podcaster or sponsor while legally protecting your business.
This post is all about the essential terms every podcast sponsorship contract needs.
Crucial Podcast Sponsorship Contract
Podcast advertising contract
1. Podcast advertising content
First of all, it's important to manage expectations when it comes to podcast advertising content. You both want to be clear on what precisely the sponsored part of the podcast episode(s) should contain, so both parties are happy with the result. Here are some things you need to specify at least:
Which episode(s): In which and how many episodes does the podcaster have to insert the sponsorship?
Duration: How long should the sponsored part be at least? Should the podcaster talk about the sponsored brand, products and/or service(s) for at least 20, 30 or even 60 seconds?
Which part: At which part of the podcast episode will the sponsored segment be inserted? In the beginning, the middle or at the end? Does the sponsored part need to be repeated at the end of the episode?
Script: What product(s) or service(s) does the podcaster have to mention? Are there specifics about the product/service the podcaster must acknowledge in the sponsored part? Or does the podcaster get more free range, and does the podcaster just have to mention three things the podcaster likes about the product? Some brands provide a complete script precisely stating what the podcaster must say. I don't recommend that because the listeners will likely notice that it's not the podcaster's own voice, so listeners will be less likely to trust whatever the podcaster is saying, which ultimately results in fewer sales.
Approval: (If there is no specific script) does the podcaster need to request prior approval from the brand for the sponsored part of the podcast episode before it goes live? If so, when does the podcaster have to present it to the brand? And when does the brand have to provide its approval or feedback? If the podcaster must change something, when does the podcaster need to present the second version to the brand, and when must the brand provide its approval? Make sure to specify how many revision rounds are included.
2. Payment
There are different types of podcast sponsorship collaborations. So, it's important to specify the type of payment associated with them.
Generally, a brand will pay the podcaster a fixed amount. But there are also other podcast sponsorship examples. A brand may base the price on the number of sales made (with the podcaster's promo code). Or, the price could be based on the number of listeners of that episode. This last option is not an option I would advise a podcaster to agree to. Or, it could be a combination of these options; a base price could be agreed upon, but a bonus may be paid if specific numbers/sales are hit, or an extra fee is paid for each sale.
In any case, it is crucial to specify when the podcaster will receive each payment. Specify how each payment is made (wire transfer or PayPal or otherwise?) and who carries the transfer costs.
3. Copyrights
Another essential element that must be included in the podcast sponsorship contract is who owns the sponsored part of the podcast episode.
There are two layers of copyrights to podcasts—the copyrights to: (1) the content; and (2) the recording itself. Podcasts are often recorded on video so they can be placed on YouTube too.
The podcaster will own the recording itself. The copyrights to the content of the sponsored part, however, could be assigned to the brand. Thus, the brand becomes the owner of that content piece. Assignment of the copyrights gives the brand control of that content, and the brand can decide fully on its own what to use that part of the recording for, like in its own promotional and advertising activities.
The copyrights to the sponsored part of the episode may also be licensed to the brand. That means the podcaster remains the owner of the sponsored segment of the episode. Still, the brand may use the sponsored part for promotional, advertising or other activities within the limits of the license. The license must specify when and how the brand may use the sponsored segment. The podcaster may not want the brand to use the sponsored part for paid advertising, for example, if the podcaster is not compensated for that. A license gives the podcaster more control.
4. Non-disparagement
No one starts a collaboration to make the other party look bad someday. Over time, however, opinions may change based on certain events or experiences.
For example, the collaboration may not produce the results either party has hoped for. Maybe the number of sales is low, or listeners dislike the collaboration or the brand itself.
On the other hand, the (initial) results may be great, but something changes one party's opinion about the other. The brand could collaborate with another podcaster or influencer that this podcaster does not want to be associated with. Or, vice versa, the podcaster could work with another brand that this brand does not want to be associated with (whether that brand is a competitor or not). Or, maybe the podcaster of the brand does something that the other party does not approve of.
These events could result in the other party saying something about the other party that negatively affects or even hurts that party (or its business). One of the parties could speak out about its disapproval of the other or even state that, in actuality, that party never liked the other party or its products/services.
Whether you would do that or not, you can't predict what the other party may do in all these hypothetical circumstances; therefore, you should prevent that. You should agree that neither of you will disparage the other, now or in the future.
5. Exclusivity
Another element is the exclusivity provision. If you are the brand, you may want exclusivity for any sponsorship. If you are the podcaster, more often than not, brands will request exclusivity from you. If the podcaster is promoting the razor of a brand, that brand will not want to podcaster to promote razors from other brands. It also does not make sense for a podcaster to promote razors from different brands, as listeners would not trust the podcaster anymore.
Make sure the exclusivity provision is clear, unambiguous, for a reasonable term and only covers the industry and niche of the brand.
What you must at least specify in the exclusivity provision is the following::
the scope of the products/services the exclusivity applies to;
the (types of) businesses or niches that are excluded (is a specific industry or niche? Does it include particular competitors?);
the term (how long does the exclusivity apply for? At least for the duration of the agreement, but what about after that? Two weeks, three months? A year? Or is it based on the date the relevant podcast episode is aired?); and
the geographical location, if applicable (does it match the locations where the brand operates?).
Often, exclusivity provisions are made much broader than they should be, which may not only be to the disadvantage of the podcaster. If the exclusivity is too broad, it may not even be enforceable.
Other provisions
These were the five crucial elements of every podcast sponsorship contract. If you are purchasing a podcast contract template, make sure that at least these elements are included. Pay close attention to these terms if you receive a podcast advertising contract.
These crucial terms are not all the essential terms a podcast sponsorship contract must include. There are more elements that every podcast contract template needs, like limitations of liability, indemnities for third-party claims, and options for termination and deletion (like when the reputation of the other party changes or if the brand does not pay). I can't provide a complete overview in a single blog post, but these are the most crucial terms specific to the podcast sponsorship contract that you must, at the very least, understand before you sign.
Podcast advertising contract template
If you want to ensure your podcast advertising contract template includes all the necessary provisions (in your favour), I sell a podcast sponsorship contract template with both brand-friendly and podcaster-friendly provisions. I also provide explanations for each alternative in my podcast sponsorship agreement template so you completely understand the contract.
You can find this specific podcast contract template on this page.
Podcast advertising contract pdf
Most of the time, the brand will present the podcaster with a podcast sponsorship contract. More often than not, it will be a podcast advertising contract pdf instead of a format that the podcaster can edit. If you are the podcaster, this does not mean that the brand is not open to any amendments (even if they state this is a contract that is presented to every podcaster and every podcaster signs it). It's a negotiation. You should never accept a contract that is not fair toward you.
Such a podcast advertising contract pdf will have terms more in the brand's favour than yours. Podcasters use the terms in my (podcaster-friendly) podcast sponsorship agreement template as examples when responding (by email) to brands to adjust their provisions.
This post was all about the essential terms for your podcast sponsorship contract
If you are a podcaster, you can learn more about each podcast contract template you need as a podcaster (including the podcast advertising contract) in this blog post: 5 Must-Have Podcast Contracts Every Professional Podcaster Needs.
You can get your legal podcast bundle (which includes each podcast contract template every podcaster needs) here!
You can get your podcast sponsorship contract separately here!
