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Youtube Brand Deal Contracts – What to look out for

Youtube Brand Deal Contracts – What to look out for

If you’re just dipping your toe into the world of brand deals, ads and sponsorships on youtube you might want to check out this post first that goes through the different types of ads, and the ways you should be disclosing them.

But, if you’re all caught up on that, then let’s dig in to some of the things that you should be watching out for before entering into any kind of agreement, and that doesn’t just mean signed contracts. While agreeing to something over email might not seem as heavy as signing a contract you can still end up in hot water if you don’t fulfil your part of a deal if you’ve agreed to it over email.

Not all of the things here should be instant red flags that make you say no to working with a company, but they are things to keep in mind when negotiating terms.

The Brand Ban

In some cases if one brand is reaching out to you they’ll request/demand that you don’t use other brands in the content that you’re producing for them. While that might not be a big problem in itself, what you’re really looking out for is whether there is any kind of time period surrounding that condition. This is especially important if the brand ban is complete, for example if you are a makeup guru then you probably don’t want to be tied into a contract that prevents you using any other makeup brand for any duration of time other than that one piece of content you are creating for them.

Script Control

It’s not often that a brand will want to control the entire script of a video, usually they want the video to be made in the style of the creator. But in some cases brands will put some kind of restrictions down, usually preventing the creator from saying anything negative about whatever they are being paid to promote. So the creator might be able to put forth their own positive opinion about the product, but they have to leave out the negative.

If that’s the case, think very hard about whether or not to agree to this kind of deal because essentially you are being asked to mislead your audience. If you do intend to agree then you’ll want to put in your own terms that while you agree to not say anything negative you will be making it clear in the video the degree of control the brand has over what you are saying. Sadly, when you do that you’ll normally find that the brand doesn’t want to work with you. Let’s face it it kind of discredits any other promotional videos made about the brand if you go ahead and spill the beans that they are controlling the script.

Pre Approval

It’s not uncommon for a brand to want to see and approve your video before you publish it if they are paying for an ad. But you do want to be a little careful here about what happens if they don’t approve it as well as the potential reasons for not approving it.

You don’t want to find yourself in a situation where the brand is controlling what you are saying in the video by refusing to approve the content because you are giving an honest negative opinion.

You also don’t want to find yourself in the position of having to continually remake the video because they are not satisfied with it.

Make sure you confirm with the brand how much control they actually have, whether or not they are going to determine the general topic of the video, the amount of time within the video dedicated to the product or whether they simply want to make sure that you aren’t doing anything in the video that would be considered bad (like making racists comments, or flushing the products down the toilet or something).

Extra Promotional Activities

While this post is about youtube videos, you’ll often find that brands won’t want just a youtube video, they’ll want some other promotional activities surrounding that video. Make sure you clarify exactly what those are, for example are you required to promote the video on other social media platforms? How many times? Are you required to post pictures of the product to social media, or talk about those products on social media? Does the brand have some kind of control over the content of those posts?

You could also find that this ties in with other points like the brand ban where you aren’t allowed to promote a similar product from another brand on your social media for x amount of time after your video has gone live.

Ad Revenue

If you’re being paid to make an ad for a company, chances are they aren’t going to want other adverts playing on that video which means a lot of them will ask for monetisation to be turned off.

No biggie right? Well, yes and no. If you’re a small youtuber that isn’t pulling in that many views or making that much money in ad revenue from a single video then you probably won’t mind not monetising it. But, if you’re a larger youtuber that gets a decent amount of views you’re probably going to be looking a little more closely at the amount you would make in ad revenue vs the amount you’re making from the deal.

At the end of the day the amount of ads or sponsored content you take part in can affect your audience and how much they trust your recommendations. If you’re taking an ad opportunity and you’re not going to be making more than what you would probably make with youtubes ad revenue it might not be worth it.

Freebies

If a brand approaches you then chances are they’ll be wanting you to use their products or services in a video, you want to make sure that these products are going to be provided to you for free. It sounds obvious, but if a company wants you to feature a lip gloss in a makeup tutorial and requires you to only use their products in the video, you’re either going to want to make sure you have enough of that brands products already, or that they will be providing the additional products with no strings attached for you to use. You don’t want to end up having to spend your own cash on a load of products to fulfil your side of the deal.

Usage Rights

In some cases a brand will want the rights to things like your pictures and will slip something into the contract that allows them to do that. In general whatever your deal is you want to be producing something that is specifically for them and not giving them access to everything that you have ever created, and everything that you create in the future.

Basically, if you give over the rights for them to use any and all of your images created past present and future in their campaigns they don’t need to pay you for the usage of those. They can use that content however they please, whenever they please at no extra cost to them. In other words, you’ll be missing out on potential payment which you should be entitled to, and you could find your pictures being used in ad campaigns that you are no part of.

Reproduction

Like usage rights this isn’t limited to just video. With reproduction you want to know exactly what the rules are here. If you create an image for a company how can they use that image? On billboards? In shops? On their website? Can they sell t-shirts with the image on it? Can they post it on their own social media? How many times can that image be reproduced and for how many years do they retain those rights?

Timing

There should be very specific time frames for any contract or agreement you are entering into. Like with the previous example, if you are giving them rights to use a single image you want to have it clearly stated how long they have the rights to use them. If you produce a piece of content for a brand for what period of time can they use it, and under what conditions. If you grant them rights to a picture of your face, are they allowed to use that picture in other campaigns that you are not directly a part of?

Aside from specific images, you’ll want the same to apply to your videos. If you make a video promoting something for a brand, are you obligated to keep that video on your channel forever more. Let’s say it was a video for a makeup brand that isn’t cruelty free and you become cruelty free, are you obligated to keep that video up regardless of your changed opinion.

In most cases all you are looking for is the inclusion of a time frame, for example you are making an advertorial video for a brand, and you agree to keep that advertorial on your channel for 3 years.

This can also apply to monetisation, maybe you’re agreeing to keep the monetisation off the video for the first year but after that first year you are allowed to turn on the monetisation, or perhaps it’s a forever deal where you can never monetise that video.

These shouldn’t necessarily be things that keep you from agreeing to a contract, but it’s something you should be aware of when agreeing to anything. At the end of the day you want to retain control over your content, and if you are agreeing to forever more terms then you start to lose that control.

Multi Deals

A multi deal is where the company doesn’t want to just do one project with you, they want to do multiple projects. Usually a multi deal would be something that occurs across multiple platforms so they want a youtube video and maybe an instagram post to go along with it. In some cases they only have the details of one of the projects and are really vague about the other ones, that’s not good. You don’t want to sign anything that ties you into doing an unspecified project because you could find it tricky if you decide you don’t want to work with the brand further, or if when they propose the additional project you don’t like them.

If you’re considering one of these then you’re probably going to want them to hash out at least the basics of the additional projects, or to have a clause in the agreement that sets out some basic terms for your ability to not proceed with any project that doesn’t meet a set of guidelines.

One of the issues here is the timing for the projects. If a company approaches you when you have 10k subscribers to do the first project of a multi deal, and the payment terms for the multi project are specified and then they approach you for the remainder of the deal when you have a million subscribers you could find yourself being massively underpaid.

Payment

Whatever form of payment is involved find out how and when you will be receiving it. It’s not unusual to request a percentage of the payment upfront and the final sum on completion of the project. You don’t want to find that your video has gone live and the company has already got what they want from the bargain leaving you chasing money.

Brand Cancellation

There are some cases where a brand might decide not to go ahead with a project once you’ve already done the work. In general it’s nothing to do with your specific content, it could just be that there’s been some change meaning they are no longer running the ad campaign. But, if you’ve already put in the work then you should be getting paid anyway. That’s part of why it’s a good idea to negotiate getting paid at least half upfront, that way even if the brand is being difficult about paying the rest of the money (which you should still fight to get, you are entitled to it) at least you aren’t totally out of pocket if you can’t get the rest of the money.

You Cancelling

This is a tricky situation that hopefully none of you will find yourself in but, it can happen, things can come up meaning you’re unable to complete the project.

In general though the main cancellation reason should be an issue with whatever it is you’re being asked to promote. Maybe you’ve never tried the product and when they send it to you you hate it and just don’t want to have anything to do with it. In a perfect world you would get the product to try out before you agree to anything, but sometimes you’ll find that it’s a quick turnaround situation where they want the video done in a couple of days and you only receive the product in time to start filming. If that’s the case then you’ll want to make sure there is a clause in the contract that lets you out of it if you don’t want to promote the product. Without that clause, if you’ve agreed to promote something, you’re kind of stuck legally and have to fulfil your side of the bargain whether you want to or not.

Non Disclosure Agreements

NDAs are fairly basic. Signing an NDA basically means you are agreeing to not disclose certain information. This could be specifics to do with whatever agreement you have with the company like how much you are getting paid, it could be discussing things that the company are keeping under wraps like future product launches, it could be disclosing other information that they might not want made public.

What it shouldn’t be is something that prevents you from disclosing the fact that it’s an ad if that’s what it is. It’s illegal to not disclose an ad to your audience and no brand should be trying to prevent you from doing that.

Sometimes a brand will want you to sign an NDA before disclosing the details of the deal they are offering and that’s just to protect themselves if you decide to not go through with it. Part of the appeal of youtube advertising for brands is the fact that often viewers are not totally aware that they are viewing an ad (something currently being fixed by new legislation over disclosing ads), or that even if viewers are aware it’s an ad they aren’t aware of the specific terms of the deal. Of course if you’re left to freely talk about the terms of the deals they are offering, or the amount that they are paying then it can hurt the ad campaign.

Legal Stuff

In general things should be straight forward enough for you to understand and not need someone with legal expertise to look over things on your behalf. If you are faced with a situation where you’re really not sure what is happening then it might be worth questioning whether it’s worth signing on the dotted line for it. In some cases though, if you can’t clear things up with a brand in a way that makes sense to you, and you want to go ahead with the deal it might be worth getting some legal advice to make sure you’re only agreeing to things you feel comfortable with.

Another alternative to getting your own legal advice is to work with a management team or a MCN (Multi Channel Network). These are all there own special little minefields that you’ll want to get informed about before agreeing to anything, so even if you are feeling a little out of your depth make sure you are doing your research on the best way to go for your situation and needs.

Did I forget something?

There are probably a tonne of different scenarios that I haven’t touched on in this post, but these are the contract issues that I’ve seen come up most frequently. If you guys feel like I’ve missed out on anything important then let me know in the comments and I’ll come back and add it in.

Good luck with whatever ad opportunities are coming your way guys!

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