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Home » 11 Key Contract Clauses Creators Should Leverage For Higher Earnings
Innovation

11 Key Contract Clauses Creators Should Leverage For Higher Earnings

adminBy adminNovember 30, 20240 ViewsNo Comments7 Mins Read
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New creators often approach brand partnerships unaware of the many additional services and rights they can and should charge for in their agreements. Beyond the basic deliverables outlined in a contract, elements like usage rights, exclusivity, and reshoots are all valuable services that creators bring to the table. These factors can—and should—require additional fees. The reality is, brands frequently include terms that go beyond the content creation itself, and it’s up to creators to negotiate fair compensation.

It’s important to remember that contracts are negotiable. If a term doesn’t seem equally fair to both the brand and the creator, creators can “redline” their agreement (marking up the contract with proposed changes before signing) to ask for edits. Creators can consult with a lawyer or manager to ensure the agreement reflects their worth and protects their rights.

1. Usage Rights

Usage rights allow brands to repurpose a creator’s content for other marketing purposes, such as paid ads or website use. Since this extends the value of the work beyond its original intent and allows the brand to profit off of a creator’s work and likeness, it should always be an additional fee to the original contracted price.

According to Eden Marquis, Founder of Quis Agency, the industry standard for paid usage is “usually 20-30% of the projected rate for the campaign per month.” For whitelisting or boosted ads, this percentage may climb to 30-35%.

Travel influencer Megan Varela (@meganelisevarela, 70k followers on Instagram) also notes that she typically charges about 30% of the base rate per 30-day period for organic usage.

Without charging for usage rights, creators risk undervaluing their content while brands maximize their reach and profitability. Always clarify the duration and platforms covered under usage rights to ensure appropriate compensation.

2. Exclusivity

Exclusivity agreements prevent creators from working with competitors during a set time frame. This restriction limits future earning potential and should be compensated accordingly.

Mikayla McMahon, Social Media Manager at Wild Dunes Resort, explains, “If we require exclusive usage of the content—meaning the creator cannot license it elsewhere or create similar content for competing brands—we consider this a premium add-on and may increase the fee by 50-100% of the base rate, depending on the exclusivity terms.”

Varela confirms this rate is what she usually sees when working with brands. “Exclusivity is about 80% of my base rate,” she notes. The length of the exclusivity period and the number of competitors excluded will influence the added cost. Brands must pay for the opportunity cost of locking in a creator’s endorsement.

3. Reshoots & Edits

Creators may also notice the term “reshoot” or “edit” in their agreements. While an edit might be changing a small bit of the video, like the text on-screen or a small part of a voiceover, a reshoot requires a creator to start fresh with the video or photo content.

While minor edits are often included in contracts with a limit, significant reshoots typically incur additional fees. Reshoots demand time, effort, and potentially extra resources, making them a premium service. Creators can set clear limits upfront, such as including a certain amount of rounds of reshoots edits in the base rate and charging extra beyond that.

Plus-size fashion creator, Zoie Kearney (@curvesbyzo_, 63k+ followers on Instagram) typically includes one reshoot free of charge and then adds on a 10% fee atop the contracted deliverable rate for any additional reshoots.

This ensures the partnership remains efficient while protecting creators from doing excessive additional work without payment. By outlining reshoot and edit fees in advance, both parties can avoid miscommunication and delays.

4. Virality Clause

A virality clause allows creators to benefit from higher-than-expected performance, such as a post going viral or exceeding agreed-upon metrics. This can involve a bonus payment tied to specific milestones, like a certain number of views, clicks, or conversions.

Including a virality clause aligns the creator’s and brand’s interests. It incentivizes creators to produce high-performing content while ensuring they’re rewarded for delivering incredible value.

5. Late Fee

Payment delays are an all-too-common issue in the creator economy. Adding a late fee clause ensures brands prioritize timely payments. Ritisha Keswani, Founder & Head of Talent at MEHR HQ mentions that they typically charge “anywhere from 10-15% for a 3-month delay to 8-10% for a month’s delay.”

Varela charges about 5% per month delayed for a brand’s late payment, which she plans to raise to be more in line with industry standard. Kearney gives the brand a one-week grace period and then charges 10% of the contracted rate as a late fee. This fee holds brands accountable while protecting creators’ cash flow.

6. Kill Fee

A kill fee compensates creators if a project is canceled after they’ve already invested time and resources. It’s typically a percentage of the original fee, often ranging from 25-50%. This ensures creators aren’t penalized for a brand’s change of plans, especially when they’ve blocked out time for the project and turned down other opportunities.

7. Rush Fee

Brands often request expedited timelines, requiring creators to prioritize their project above others. This premium service requires an additional fee, usually 25-50% of the original rate, depending on the urgency.

The industry standard turnaround time for content is typically about two weeks from the date that a creator receives the product in hand. Many creators charge significantly for any partnerships requiring quick such as Varela who considers “rush” anything less than a week or on a holiday weekend.

Keswani mentions that rush fees are very dependent on the situation. For example, how booked a creator’s sponsorship calendar is and how much the talent wants to work with them. “Most deals that have come our way have been within similar timelines of 2-3 weeks so it hasn’t always been something we needed to quantify.”

Setting boundaries around rush requests prevents burnout and ensures creators are adequately compensated for the extra effort.

8. Platform Cross-Posting

If a brand wants the contracted deliverables shared across multiple platforms, creators should charge extra for the added exposure and effort. For example, posting on Instagram, TikTok, and YouTube requires more time to optimize captions, hashtags, and formats.

Cross-posting fees can range from 20-50% of the base rate per platform. Both Varela and Kearney typically charge 50% of their typical rate to cross-post content onto another platform. Brands benefit from greater reach, so creators must account for the extra value provided.

9. Raw Footage

Brands may request raw, unedited content to repurpose for their campaigns. Since this material has significant value and could be reused in other ways that the brands can monetize from, creators should charge a premium for its release.

Fees for raw footage can vary but often range from 25-100% of the base rate. Kearney typically charges her brand partners 30% per month for raw content usage. Creators should ensure they’re clear about how the footage can and cannot be used.

10. Travel & Accommodation Costs

When a campaign involves travel, creators may request that the brand covers related expenses, including flights, hotels, meals, and incidentals. Creators can also charge a day rate for their time spent traveling. These costs ensure creators aren’t financially burdened while fulfilling brand requirements.

As a travel creator, this is a cost that Varela often includes in her brand partnership agreements. Typically, she requests that the required travel and accommodations be covered by the brand or refunded to her by the brand when it’s required she is out of her home county. She’s been paid up to $1,000 for out-of-state travel.

11. Product Sourcing Fees

Many creators charge a sourcing fee if a campaign requires creators to purchase specific props, outfits, or products. This compensates for the time spent researching, purchasing, and coordinating these items.

Typically, sourcing fees are billed as a flat rate or an hourly charge. By outlining this upfront, creators ensure transparency and fair payment for their efforts.

Bottom Line

Negotiating additional fees for deliverables and services isn’t just fair—it’s essential for ensuring creators are compensated for the full scope of their work. By understanding the value of their time, skills, and resources, creators can confidently approach brand partnerships, setting themselves up for long-term success.



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