The TRUTh about UGC contract templates
When looking online, you may have come across UGC contract templates.
But do you know the difference between custom or template contracts?
Do you know the significance of getting a template drafted by a lawyer versus a non-lawyer or simply lawyer-reviewed?
If not, this blog is for you.
This is such a great topic because a free or non-lawyer drafted contract template may look like a great alternative option, but really that is comparing apples to oranges because they are not the same thing and I’ll explain why.
By the end of this post, you will understand the difference between lawyer-drafted contract templates and other online templates and will know how to wisely choose your DIY legal protection options.
So, let’s begin…
What is a contract template?
A contract template is a blank, standard form that is meant to be filled out and used as a binding contract. It is often broad and includes basic legal terms that will serve as the foundation of the contract.
At the most basic level, it is the draft version of the contract.
And it is never meant to be used as-is, but instead, it is meant to be customized to suit your specific needs and unique situation.
For example, a contract template may form the legal basis of your brand deal, but depending on what you have agreed to do for the brand you will need to modify the template for each new deal you enter into.
Because the contract template needs to be edited for each brand deal that you enter into, it is important to know the significance of each of the terms included so you know how to modify it.
What are the advantages of using a contract template?
The advantage of using a contract template means that you do not have to draft a contract from scratch each time you enter into a brand deal, you don’t have to hire a lawyer to draft one for you, and you are able to compare the brand’s contract to your template to discover any modifications you’d like to make to their contract.
Contract templates also reduce your biz costs because you do not have to hire a lawyer to draft the contract, but instead can modify the template to your needs and have a lawyer review it - greatly reducing the impact on your budget.
What are the disadvantages of using a contract template?
The major disadvantage of using a contract template is that it is not a custom contract drafted by a lawyer for you and that particular brand deal.
You run the risk of including boilerplate text or legal clauses that are not suitable for your particular use.
Worse, it may not include important terms that you didn’t know you needed.
It may also expose you or your creative business to liability risks should you miss key terms or include terms you didn't mean to or understand.
That is why it is important to use contract templates strategically…like purchasing contract templates drafted for your niche by a lawyer who knows your industry.
What about online templates from other creators or free online ones?
These are great if you already know all the legal terms that need to be included or not included and are confident and legally savvy enough to modify them to your needs.
For each new brand deal, you will need to edit your template for that specific deal.
If you don’t have the legal expertise to modify them without a guide or assistance, then I caution you from buying non-lawyer online templates – these will likely give you a false sense of security and major legal headaches down the road.
One of the biggest dangers of using contract templates is that you may be using the wrong form- for instance, a service agreement will not cover the same things as a UGC Client Contract, and the same goes for an Influencer contract, the contract terms are different and protect different rights.
Blindly using a contract template without understanding the legal impact of each term, (or signing a contract from the brand without reviewing it,) can cost you exponentially more money than the price of a lawyer-drafted contract template and/or hiring a lawyer to review it.
As the saying goes, “cheaper isn’t always cheaper.”
There truly is no one-size-fits-all when it comes to legal contracts.
When you simply purchase an online template from another creator or use a free one online, you run the risk of that contract missing key legal terms or including terms that contradict one another.
Putting a ton of legal terms together doesn’t mean that it was done correctly.
Contracts are meant to protect you, but if you don’t know what you don’t know, and basically, don’t know what’s missing or what has been included, you run the risk of entering into a legally enforceable agreement with the brand and creating legal obligations that you never intended to.
For example, you may have agreed to pay the Brand’s attorney’s fees and any judgment if a third party sues the Brand after seeing your ad, and for something that wasn’t even your fault. That $150 deal may have just cost you $50 grand.
Be cautious when taking legal advice from non-lawyers and for contracts that were not vetted by a lawyer.
You’ll want to purchase a template that explains what was included, why it was included, and how you can modify it to fit your needs.
What about contract templates reviewed by lawyers?
The problem with templates that are only “reviewed by a lawyer” is that you don’t know who wrote the template and you don’t know who the lawyer is.
This is important because not all lawyers are created equal and not all contracts are made for your intended purpose.
Before purchasing, I’d ask the following of the seller:
What area of law does the lawyer practice?
Does the lawyer know about UGC Creators?
Does the lawyer understand the legal aspects of paid content creation?
Was the contract drafted for UGC or Hybrid Creators (i.e. Influencer content)?
What did the lawyer review the contract for - was it for general UGC work, or for a specific brand deal (which may or may not apply to you)?
Does the lawyer who reviewed it also provide guidance as to each of the legal terms and their significance so you could modify it yourself?
Not knowing the answer to these questions may lead to the omission of important language in the contract, which can either make or break your contract.
Basically, the template is not guaranteed to apply to your situation or to be complete simply because it was “lawyer reviewed.” That is generally the reason people state their contract was “lawyer reviewed” because it gives the impression that that template is trustworthy and complete.
When it might not be.
Really, it’s unfair to the lawyer who reviewed the contract and sets an unreasonable standard for all parties involved. Just because a lawyer reviewed it doesn’t make it complete, doesn’t mean you’ll be able to understand and modify it and it may simply mean that it only includes the basic foundational terms, not terms specific to your niche or situation.
In the end, a contract reviewed by a lawyer may include wording that is too generic and could cost you a ton of money and time if the Brand decides to take advantage of it.
What is the significance of getting a template drafted by a lawyer?
I can only speak on behalf of the templates I’ve drafted….although I would highly recommend going with a lawyer-drafted template if you cannot afford to hire a lawyer to draft a custom contract for you because of all the reasons I’ve already mentioned.
In addition, the significance of getting a template drafted by a lawyer is that the contract template is more likely to be specifically tailored to your niche, which means it is more likely to include necessary legal clauses meant to protect you.
Again, you’ll want to look at who the lawyer is that drafted the template - do they have an understanding of UGC, paid content creation, and business and contract law?
A lawyer-drafted template should also cover all possible scenarios along with guidance on how you modify the template for each situation.
In our UGC Bundle, we include a contract template that has more of an “if, then” situation, to ensure you can fully customize the template for each brand deal and unique situation.
For instance, next to the exclusivity or non-exclusivity section, we include instructions that “if you are a UGC Creator and not posting to your social media platforms, then include this clause- the non-exclusivity portion. However, If you are being paid to post the content to your social media platform, then include this clause- the exclusivity portion and depending on your choice delete the other one.
This type of “if, then” instruction is done for all the negotiable and variable terms that my apply to each new brand deal. Other legal clauses, that are foundational legal terms, are ones that will be included in a majority of your contracts and we provide insight into their legal significance so you understand why they are included.
Getting instructions on how to modify your template are essential.
Without this legal guidance, you run the risk of including terms that don’t apply to you. For instance, you may accidentally include an “exclusivity clause” as a UGC Creator simply because the template had included it for a different creator and was reviewed by a lawyer who either doesn’t understand influencer or UGC marketing or who reviewed it for a creator, who unlike you, was acting as an influencer instead of a UGC Creator.
You are now legally prevented from entering into a deal with a competing brand or product, even though you are not posting the content to your social media platforms, and this costs you money and the deal when it shouldn’t have been an issue.
That is the point of a lawyer-drafted contract template - to provide you with the knowledge to modify the template for each brand deal.
It is vital, especially when preparing your own contract or negotiating with the Brand over their contract, to understand your rights.
You’ll also need the legal wisdom to know how to modify the Brand’s contract, which is why simply having a template without more puts you at a legal disadvantage, one which the Brand may exploit to their benefit.
You’ll need a solid understanding of how your rights are being protected under the contract.
Difference between custom contracts and contract templates.
Finally, what is the difference between a custom contract and a contract template?
A custom contract means a lawyer drafts the contract for you and that particular brand deal. It is used one time and covers that situation only.
These are a one-and-done type of deal and do not get updated or used again unless you pay the lawyer to review and revise them.
And yes, you have to pay for each revision.
The best part of getting a custom contract is that the lawyer can assist you in identifying what should be included, what is non-negotiable (meaning you should walk away from the deal if the brand pushes for something else), and which terms to be flexible on. And the lawyer is there to walk you through it all.
Custom contracts are the best option - but the biggest downside is that they can cost anywhere from $500 to $2000 on average, which is oftentimes not in a creative’s budget.
This is the reason contract templates drafted by lawyers have become so appealing to online creatives.
👉 Looking for an attorney-drafted contract template with expert legal training?
Go grab our UGC Bundle or UGC Bundle PLUS here.
👉 More of an audiovisual person??? Check out this YouTube video instead:
DISCLAIMER: The information provided in this blog post is for informational and educational purposes only. This is not a substitute for customized legal advice - if you need legal advice, please consult with an attorney. This is not a law firm.
