25 Red Flags to Avoid When Working with Brands (Part 3)

Creators
Written By Selene Snippe

Are you going to be working with brands on brand collabs? I'm spilling the tea on all the red flags content creators and influencers must avoid (and how).

It's so exciting to be working with brands to earn your income, but if you're anything like me, you want to make sure the brand actually pays you what you deserve and avoid your personal brand getting hurt. As a lawyer myself who helps content creators and influencers like you, I am spilling the tea on red flags to look out for and how to safeguard yourself against them.

You will learn about the key red flags to avoid when working with brands if you work with brands as an influencer. I’ll also give you tips on how to work with brands on Instagram, TikTok, YouTube, and any other SM platform in a way that protects your interests.

After learning all about how to protect yourself against these major red flags, you'll be earning more while protecting your business and bottom line.

This post is all about the critical red flags to watch out for when working with brands so that you'll earn more andkeep your money.

Successfully Working with Brands

The major red flags to avoid when you work with brands as an influencer

The first 10 red flags

This blog post is Part 3 of the 5-part series on red flags to watch out for when you collab with brands.  

If you haven't yet, make sure to read about the first 10 red flags in Parts 1 and 2:

Red flag #11: Crippling exclusivity clause

The issue

One of the major red flags to watch out for when working with brands is a super restrictive exclusivity clause in the brand's contract.

Of course, the brand will not want you to post a raving review for a competing brand the next day, and it's only fair that you agree not to. However, it can't be that if you post one TikTok video for a beauty brand's new lipstick, you can not work with any other brands in the beauty industry for the rest of eternity.

A brand can't cripple you and basically prevent you from making money ever again.

The solution

Here are at least 3 limits you must set on any exclusivity provision:

  • Limit the exclusivity period: Make sure the exclusivity is only applicable for a specific period and that it's a reasonable time frame, such as 3-6 months. Pro tip: Make sure you charge for each month of exclusivity. Read more about that in this blog post: 11 Essential Rates for Your Influencer Rate Card | The Ultimate Guide + FREE Template (Part 1).

  • Limit the competitors: Make sure you state that you will not work with any other brands that directly compete with the brand's current lines of business.

  • Define the types of products: Also state that this exclusivity applies only to the extent it concerns products and/or services of the brand that are part of the content.

If it's a UGC deal, however, do NOT accept any exclusivity!

Red flag #12: Content ownership

The issue

Another red flag when working with brands is when a brand includes in the contract that the brand will become the sole owner of all intellectual property rights to the content.

You do NOT want the brand to own anything with your face on it!

Why? Because when the brand owns your content, the brand can use it for whatever purpose on any platform and in any context. The brand could even edit it without restrictions and give it a completely different context. The brand could do that in 2 weeks or 2 years—all that without needing your consent. And you will have no right to control what the brand does with your content or stop the brand.

And you don't even know how the brand's reputation might change. The brand creates crappy, poisonous products in the future, and your name will be associated with it forever.

But even if that does not happen, you want to be compensated fairly. The brand will pay you to post the content on your own platform, and the brand may pay you an additional fee to post your content on their own Instagram. However, you should receive additional compensation if the brand decides to use your content for ads on Instagram or other platforms or in their emails, for example.

The solution

  • Give the brand a license: Do not give the brand ownership rights, but the right to use the content through a license. You retain full ownership and control of your content.

  • Specify what the brand can do: Do not just give the brand a license to use the content for whatever the brand wants. You must specify the following limitations for your license:

    • Specify whether the brand is permitted to edit the content.

    • Specify for how long the brand receives a license.

    • Specify the purpose(s) for which the brand may use your content. This is to avoid the brand using the content for other purposes, like advertising or a paid course, for which you are not compensated.

    • Specify on which platform(s) the brand may use the license (which I'll explain more in red flag #13).

    • Make sure you charge usage rights fees (which I'll explain more in red flag #14).

Red flag #13: Perpetual licenses

The issue

Another red flag when working with brands is a perpetual license.

Watch out for terms like "perpetual", "in perpetuity", or "indefinite" term or period. Or, the contract could not state an expiration date or period for the license, which also means the license is perpetual.

A perpetual license means that the brand can use your content indefinitely, in other words, forever, without your permission and additional compensation.

It's almost as bad as a brand receiving ownership of the content. It's the second worst, maybe.

The solution

The solution is simple:

  • Delete the perpetuity: Ensure that any wording like "perpetual" or "in perpetuity" is removed if it's included.

  • Set a fixed license duration: Include a duration for the license if the brand pays a one-time usage rights fee.

  • Set monthly advance royalties: You can also set an indefinite term if you and the brand agree on periodic royalty payments until one of you cancels the licenses. That way, you can license the content for as long as you want, and the brand can use the license for as long as it wants, and you will keep making money off your content!

  • Combo deal: You can also agree to a fixed (discounted) fee with the brand for the first x months and then allow the brand to use the content for a period after that for an additional weekly or monthly fee.

Red flag #14: No usage rights fees (royalties)

The issue

That brings me to the next red flag when working with brands, which is when a brand does not include usage rights fees, also known as royalties, for the use of the content by the brand.

Yes, the brand pays you a fixed fee for the sponsored post that you post on your platform, but additional compensation should be paid for the use of your content on the brand's platforms.

You can agree that this is a fixed fee for a fixed period of usage, which is then included in the total fixed fee. However, you must ensure that you are fairly compensated for the brand's usage. Don't let the brand tell you that "that's included in the fee".

The solution

Ensure you charge a separate fee for usage rights. I already discussed how you can charge for usage rights under red flag #13.

But ensure you have upfront fees for what are called add-ons, which include usage rights fees or royalties but also the following fees:

  • Both organic and paid usage rights

  • Exclusivity rate (which I discussed in red flag #11)

  • Whitelisting rate

  • Link in bio rate

  • Revision rate for additional edits prior to posting

  • Post-production editing rate for edits made after posting the content (if the brand wants it re-edited for use on different platforms)

  • Giveaway rate

  • Rush fee

To learn more about these rates and what you should include in your influencer rate card, read these blog posts:

Red flag #15: Third-party use

The issue

Another bright red flag when working with brands is when the brand can enable anyone else to use your content.

There are two ways in which the brand could do this:

  • The brand could sub-license the usage rights you have granted the brand to any of its affiliates or anyone else (and even ask money for it). In other words, the brand could share the content with someone else to use for their own purposes. If the contract states that the license is sublicensable or does not state anything at all, the brand could do that without asking you.

  • The brand could transfer its rights under the contract to anyone else, including any rights the brand may have for you to edit the content. Watch out for wording in the brand's contract that states that the brand may transfer the contract or any rights under the contract to third parties.

The solution

You must include these 3 protections in your contract:

  • Sole license: Specify in the contract that the license you grant the brand is a sole license, meaning only you and the brand can use the content, no one else.

  • No sub-licensing: Explicitly state in the contract that the license is non-transferable, non-pledgeable, and non-sublicensable, so the brand can't just transfer the license to someone else.

  • No contract transfer: Explicitly state in the contract that the brand is not permitted to transfer any of its rights and obligations under the contract to any third party.

Of course, the brand may want to have an affiliate use your content. But, then, you will conclude a contract with that affiliate directly so you can agree with that affiliate under what terms they may use it and set your own fee.

That is how you ensure you earn what you deserve while protecting your business and personal brand when working with brands.

The other 20 red flags

In this blog post (Part 3 of the 5-part series), I only discussed 5 of the 25 red flags in brand collaborations.

If you haven't yet, make sure to read about the first 10 red flags discussed in Parts 1 and 2:

Now, let's move on to Part 4, in which I'll discuss these next 5 red flags:

  • (Shipping) costs are not covered

  • Product returns

  • Unclear compensation

  • Conditional compensation

  • No fees for additional work

Read Part 4 here: 25 Red Flags to Avoid When You Work with Brands (Part 4).

The ultimate contract templates for any type of collab with brands

As discussed in this blog post (and in Parts 1 and 2 and the next Parts 4 through 5), all the key protections you need to avoid major red flags you can find in a creator-friendly contract.

In my contract shop, I sell creator-friendly contract templates for any type of collab with brands to help protect all kinds of creators with the legal armour they need.

So, if you want to avoid all the red flags, make sure to use these contract templates:

How to collaborate with brands on YouTube

Are you going to be working with brands to create sponsored content on your YouTube channel? And are you wondering how to collaborate with brands on YouTube?

Then, make sure you read this blog post next on the 9 Must-Haves for Your YouTube Sponsorship Contract Template to Earn More & Keep Your Money.

This post was all about major red flags to avoid when working with brands so that you'll earn more while protecting your business and bottom line.

Get all the legal armour necessary for working with brands on any platform with these contract templates:

Selene Snippe
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25 Red Flags to Avoid When You Work with Brands (Part 4)
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25 Red Flags to Avoid When You Collab with Brands (Part 2)