The email lands in your inbox. A dream brand wants to work with you, and the budget is double what you expected. They send over the contract... and your excitement instantly turns to anxiety.
"In perpetuity"? "Exclusivity"? "Net 60"? What does all this legal jargon even mean?
You’ve set up your LLC and you know your tax deductions are ready. Now it's time to protect the income you generate. Signing a generic or brand-sided contract is one of the fastest ways for a creator to lose money and control over their own content.
This guide will teach you how to read a contract like a professional. We're pulling back the curtain on the five most dangerous red flags brands slip into their agreements and what you need to do about them.
Red Flag #1: Vague "Scope of Work"
A vague scope of work is a brand's free pass to demand more from you later.
The Red Flag Looks Like:
"One (1) dedicated YouTube video and social posts."
The Danger:
What does "social posts" mean? One tweet? Five TikToks? Do they get to approve the topic? How many revisions do they get? This ambiguity is how you end up in an endless cycle of re-edits and extra work, a phenomenon known as "scope creep."
The Fix (Your Counter-Offer):
Be surgically specific. For example: "One (1) 8-10 minute dedicated YouTube video on the agreed-upon topic. One (1) Instagram post and three (3) Instagram Stories with a swipe-up link. Includes two (2) rounds of reasonable revisions."
Red Flag #2: "In Perpetuity" Usage Rights
This is the most dangerous clause in a creator contract. "In perpetuity" is legal speak for forever.
The Red Flag Looks Like:
"Brand retains the right to use the content in perpetuity across all media channels."
The Danger:
The brand can use your face, your voice, and your video in their paid ads on TV, social media, and billboards—forever—without ever paying you another dollar. Your $3,000 one-off video could turn into a multi-million dollar ad campaign for them, and you see none of it.
The Fix (Your Counter-Offer):
Always define a timeframe and scope. For example: "Brand is granted a license to use the content on its organic social media channels for a period of one (1) year from the post date." If they want to use it for paid ads, that is a separate, higher fee.
Red Flag #3: Unfair Exclusivity Clauses
Brands need to protect their investment, but some exclusivity clauses can cripple your ability to earn money.
The Red Flag Looks Like:
"Creator agrees not to work with any competing brands for a period of 12 months."
The Danger:
Who defines a "competing brand"? If you do a deal with a laptop company, does that mean you can't work with a software company, a mouse company, or a cell phone brand for a whole year? This can lock you out of thousands in potential income.
The Fix (Your Counter-Offer):
Narrow the scope and timeline. For example: "Creator agrees not to promote a directly competing laptop brand for a period of thirty (30) days following the campaign go-live date."
Red Flag #4: Fuzzy or Delayed Payment Terms
"We'll pay you soon" isn't a business plan. Vague payment terms are the #1 reason creators get paid late.
The Red Flag Looks Like:
"Payment will be processed upon completion of the campaign." or "Payment Terms: Net 60."
The Danger:
"Net 60" means the brand has 60 days after you submit your invoice to pay you. For creators, that can be a cash flow nightmare.
The Fix (Your Counter-Offer):
Demand clear, prompt payment terms. For example: "Payment of 50% upfront upon signing, and 50% upon final content approval, payable within 15 days (Net 15)." Always include a clause for a late fee (e.g., "A late fee of 5% per month will be applied to all overdue invoices.").
Red Flag #5: The Brand Claims "Content Ownership"
This is a subtle but critical distinction. You are a business providing a service, not an employee creating work-for-hire.
The Red Flag Looks Like:
"All content created under this agreement shall be the sole property of the Brand."
The Danger:
This means you don't own your own video. You can't repurpose it, use clips from it, or even feature it on your own reel without their permission. It's no longer your content.
The Fix (Your Counter-Offer):
Clarify that you own the IP and they are licensing it. For example: "Creator retains all intellectual property rights to the content. Brand is granted an exclusive license as defined in the 'Usage Rights' section."
Spotting Red Flags is Your Superpower
Reading a contract doesn't have to be intimidating. By knowing what to look for, you transform yourself from a hopeful artist into a professional business owner. Every clause is negotiable.
Even with this knowledge, we know it can be stressful. Having a pre-vetted, creator-specific template is the ultimate peace of mind.
Is Your Business Set Up to Protect You?
A good contract is only half the battle. If your business isn't structured correctly, you're still personally at risk.
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