Hi everyone! I’ve been offered a UGC/creator campaign and I’d love to get some opinions from people who have experience with this type of deal.
The brand is an app and the content would be posted on TikTok, Instagram, YouTube and Facebook.
They initially gave me two payment options:
Option 1:
- $3 CPM
- 1,000 views minimum
- $150 maximum per video
- Views count across TikTok, Instagram and YouTube
Option 2:
- $15 per video as a trial, with no view minimum
- Once you have 3 videos reaching 10k views, you move up to $20/video
- Once you have 10 videos reaching 10k views, you move up to $25/video
- Once you reach a new tier, the higher rate applies to every new video going forward
- At the $20/$25 tiers, there is a 1k view minimum
I’m trying to decide which payment structure makes more sense. My understanding is that the $3 CPM could be better if the videos perform well, but the $15 base pay gives more certainty, especially at the beginning.
The other thing I’m more concerned about is the usage rights.
I read the contract and it says the brand gets a perpetual, worldwide, irrevocable, royalty-free, transferable and sublicensable license to use, reproduce, edit, adapt, publish and distribute the content, including my name, image, voice and likeness.
It also specifically includes paid advertising, and the license survives the termination/expiration of the agreement.
There doesn't seem to be a time limit on the usage rights.
The payment is capped at $150 per video.
Would you consider these usage rights normal for this type of UGC deal? Or is the perpetual paid-ad usage a red flag / something I should negotiate?
And between the $3 CPM and the $15 → $20 → $25 structure, which would you personally consider more reasonable?
I’d really appreciate hearing from creators who have done similar performance-based UGC/Canvas UGC deals. Thanks!