You made it! Congrats, your content has caught the eye of a brand and they are ready to sign you up. But do not let this exciting offer make you miss out on key contract details that could have a real impact on your image and business- not to mention many details can be negotiated if they do not fit with what is important for you.
Collaboration agreements are usually drawn up listing all the terms and conditions. However, every industry and region have its own unique requirements, your needs will therefore also vary depending on those factors.
Before signing on the dotted line, make sure that you understand these five clauses so you do not end up thinking “What did I just sign?!”
1. Intellectual Property
Protecting IP is a tricky game, and it is important to define who has the right to use what content. There is nothing worse than finding out that somebody else has control over content you created with hard work and dedication!
Getting paid for content creation does not mean you have to hand over the copyright to a brand or agency. Therefore, unless specified otherwise in your contract, you typically own the copyright.
Stay one step ahead of copyright issues by reading our blogpost on this subject- it is essential knowledge for all artists and influencers nowadays.
2. Grant of endorsement rights
Again, before you partner with a brand, make sure to understand the rights they possess.
Careful consideration should be given when granting reproduction and distribution rights. Details relating to how long the content can be used and what they are allowed to do with it should all be stipulated in your agreement
Do they need permission to reuse your creation or can it be used for eternity? Are they allowed to make any edits such as colour changes? Knowing exactly what a brand is getting access to will help ensure that your work stays yours and is not taken away from its original context.
3. Exclusivity
When it comes to marketing, exclusivity is key. Brands do not want their sponsored creators to advertise competitors’ products, they therefore rely on non-compete clauses in order to protect themselves.
Being locked down in a non-compete clause comes at a cost!
If you are considering signing a contract with a brand that requires exclusivity, it is essential to make sure that they compensate you for the lost opportunity. When negotiating rates, make sure to agree on how long the agreement stands (lengthier terms will naturally increase costs), as well as what brands or industries are off limits while under contract.
4. Payment terms
Before you sign on the dotted line make sure that your payment terms are clear, fair and reasonable. Nobody enjoys waiting months for delayed payments, especially small content creators relying heavily upon their cash flow.
For instance, a fair structure would be to pay 50% at contract signing and then to split up the other half providing 25% on the date of the last post and the final 25% within 2 weeks of post-campaign analytics being provided.
5. Termination
In the business world, you have to be prepared for those “What if” situations. It is important to ensure that everyone has a clearly defined way out of the agreement- you should be able to exit in certain conditions, while giving the brand their due rights too.
Contracts can protect both sides, but as a content creator, it is wise to anticipate the potential of your contract being abruptly terminated without being given much of an explanation. Make sure that your contract account for sudden termination clauses so no matter what happens, at least you are covered!
Are these clauses enough?
Entering into a collaboration agreement is an important step to ensure that your interests are safeguarded. However, your business is unique, and so are your needs, therefore other clauses may need to be considered.
Crafting the perfect contract requires ample consideration but our team of experts is here to provide legal advice tailored to your needs. Please contact us today if you need to draft a contract.
If you are an influencer looking for more tips on how to safely collaborate, check out our article diving further into this intricate topic.
