Welcome content creators! If you're aiming to collaborate with brands on generating user-generated content (UGC), having a definite agreement can support in making sure that both sides are aware of expectations, rights, and remuneration. In this blog article, we'll show you how to construct your own UGC contract template, thus protecting your work and negotiating best terms. If you have experience as a content creator or are just starting out, having a reliable UGC contract can help you go through the world of sponsorships and build strong connections with brands. So let's get started!
What to include in a UGC contract template - MUST HAVE
These are 8 main terms that should be considered mandatory in any UGC contract template. Check them out here below - if you want to get access to UGC contract templates and additional useful resources for your UGC business visit movig.
1) Usage Rights
This clause allows brands to use your images or videos in specific ways (e.g. paid advertisements, whitelisting, dark posts, etc.). There are different types: creator licensing (FKA "whitelisting"), paid usage, organic usage, etc.. Make sure the nature and duration of the license is specified in the terms. We also recommend not allowing perpetual use rights for 2 main reasons: i) it's impossible to compensate for forever; ii) it eliminates the freedom of being able to work with brands of our choosing in the future. Check out this LinkedIn post from Kristen Bousquet to learn more!
The exclusivity clause means that a brand requests not to work with competitors in the same product/service category for a period of time. Make sure the brand lists the length of the exclusivity period, and if possible list all the brands that are considered competitors.
3) Payment Terms
Always remember to include a description of when the brand will pay you. Make sure that the clause states the exact time for the payment to be sent to the creator (TIP: NET30 means his 30 days, not business days).
4) Payment Method
It's very important to include a description of the payment form that the brand will send to you, the creator, after the service is complete. If your payment method requires high fees, you can ask the brand to cover them, so it's important to make sure that the payment method is clearly stated in your UCG contract template. Examples of most common payment methods are: PayPal, wire transfer, Venmo, Stripe, etc..
5) Content Ownership
This clause identifies the owner of content created during the brand partnership. Will you transfer the full rights of your content to brands? Do they buy all the rights from you? If so, this section provides all the details. In most cases, this is not what's happening, so it's important to clearly state in this area who holds the ownership of the content. Usually, brands want to retain full ownership of the content created as they plan to reuse the content on other social media channels and pages.
Deliverables are the services you are expected to provide to the brand. It is very important to ensure that your deliverables are listed in your UGC contract template to make sure you and the brand are on the same page. Examples of deliverables are a testimonial video, images, a video package, content repurposing, product reviews, etc...
This is when the brand expects you to submit a draft, deliver the final content, and publish the final content. To make sure you're a great partner, make sure to deliver your content in a timely manner. This is not possible without knowing the exact schedule of the brand's campaign. In this clause, most brands list their estimated delivery dates - if not stated in the contract, you can find them in the creative brief.
Last but not least, your rate. This is the amount of money you'll be paid for your service. Without having the exact rate written in this clause, it would be difficult to have a situation hold up in court if you weren't paid what you were supposed to be by the brand. This is probably the most important clause in your agreement with a brand.
For further tips on how to build your UGC contract template check out ugcang video!
Other terms to include in your UGC contract template - OPTIONAL
1) "Content rush fee"
If you plan to deliver your content to brands in less than the industry standard two weeks, you can charge a rush fee of 15-20% of the total campaign rate.
2) "Make good post"
Don't let brands sneak this clause into your agreement. A "make good post" is a post that you are required to make for the brand without additional compensation if your original piece of content doesn't perform to their expectations. .
3) "Virality clause"
This clause is sometimes difficult to get a brand to agree on. A virality clause says that if the post goes viral, the creator is entitled to a certain dollar amount per a certain number of views in addition to the agreed-upon flat-rate payment.
If you want to learn more about the legal aspects of your UGC business check out Creator Legal - they're a professional legal team helping creators protect themselves and build their business the right way.
Once your UGC contract template is ready, you can then focus on finding brand deals and scaling your business. If you need tips on how to find brand partnerships check out our previous article "How To Find UGC Collabs" and browse our UGC Brand Deals Hub to learn about the best platforms for UGC collaborations.
In conclusion, creating a user-generated content (UGC) contract template can provide you with a clear and structured agreement that protects your creator rights, while also setting expectations and guidelines for your brand partnership. By including key clauses like content ownership, usage rights, and compensation, you'll ensure a mutually beneficial relationship. Each agreement should be customized to fit the specific needs of both parties involved. By having a well-defined contract in place, you can feel more protected and focus on creating great content for brands.