Contracts
UGC contract terms explained.
A rate is only as good as the terms around it. This guide explains the clauses that change what a UGC or brand deal pays, and the calculator turns three of them into dollars and a date. General information, not legal advice.
The five clauses that move your pay: usage rights, exclusivity, payment terms, revisions and cancellation. On a $800.00 job with net 30 terms invoiced on 2026-11-02, payment is due 2026-12-02, and a 50% kill fee would be $400.00.
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Worked example
A brand agrees $800.00 on net 30 terms. You invoice on 2026-11-02, so payment is due on 2026-12-02. If the brand cancels after you have shot the video and the contract has a 50% kill fee, you are owed $400.00. An extra revision round of 1.5 hours at your $40 target is worth $60.00.
Without a kill fee clause, a cancellation may leave you unpaid for work already done, so check that clause before you start.
How it works
Usage rights say where a brand may run your video, on which channels, in what form and for how long. The narrower and shorter, the lower the fee can be; unlimited or perpetual use is a bigger grant and is normally priced as one. Look for whether use includes paid ads, whether it covers edits of your video, and whether the licence ends automatically at a set date.
Exclusivity restricts you from working with competitors for a stated period and category. Look at how a competitor is defined and how long the restriction lasts. Payment terms such as net 30 mean the brand pays within 30 days of your invoice; some brands use longer terms. Ask whether the clock starts at invoice, delivery or approval, because that changes the date.
Revisions: a contract should cap the number of rounds included, define what counts as a round, and state the price of an extra one. A kill fee is a payment due if the brand cancels after you start, often a percentage of the fee that rises as work progresses. None of these are standard; what you can get depends on the brand, so read each clause and ask for what is missing in writing.
Results vary. This model uses the assumptions you type in; it is not a prediction, a quote anyone has agreed to, or a promise of earnings. Everything runs in your browser. Nothing you type is sent or stored.
Methodology
Due date = invoice date + payment days, computed in UTC calendar days with no business-day adjustment. Kill fee = fee x kill-fee percent (capped at 100%). Extra round price = hours per round x your hourly target. Invalid dates, negative numbers and a zero fee are rejected. The explanations on this page are general descriptions of common clauses, not sourced rates.
What this does not cover
- Legal advice or review of a real contract; see a qualified professional for that.
- Intellectual property ownership beyond the usage summary above.
- Taxes, invoicing law, interest on late payment, or rules outside the United States.
- What brands will agree to; every term is a negotiation.
Sources
- FTC, Disclosures 101 for Social Media Influencers, retrieved October 2026.
This is the primary source for the points above.
FAQ
What does net 30 mean?
It means the brand should pay within 30 days of the invoice date. Check whether the contract starts the clock at invoice, delivery or approval.
What is a kill fee?
It is a payment owed to you if the brand cancels a job after you have started, often a percentage of the fee. Whether you have one depends on your contract.
How many revisions should a UGC contract include?
There is no standard. The contract should state the number of rounds included and the price of extra ones, so changes do not become unpaid work.
Is exclusivity free?
It limits the other work you can take, so many creators price it separately. The usage rights fee calculator treats it as an add-on.
Is this legal advice?
No. It is general information. For a specific contract, get advice from a qualified professional.