Brand deal red flags: the clauses and scams to catch

Short answer: there are two kinds of red flag in a brand deal. The first is a real brand with a one-sided contract: perpetual usage, unpaid whitelisting, broad exclusivity, or AI and likeness rights. The second is an outright scam: upfront payment, gift cards, a free email address, or urgency. Catch both before you reply.

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Red flag type 1: a real brand, a bad contract

These clauses come from real companies. They are not illegal, they are just written to favor the brand. For each, here is what it looks like, why it costs you, and what to say back.

Perpetual or all-media usage

What it looks like: "in perpetuity", "worldwide", "all media", or no end date on usage.

Why it costs you: The brand can use your content forever, everywhere, often for an organic-only fee. It is the single most expensive right in the contract.

What to say back: “I license this for organic use for 12 months. Perpetual or paid usage is a separate fee.”

Unpaid paid-ad usage or whitelisting

What it looks like: Rights to run your content as ads, or through your own handle (Spark Ads, whitelisting), with no separate line item.

Why it costs you: Paid ads and whitelisting are worth 30 to 100 percent on top of your base fee. Bundled in silently, you give away real money.

What to say back: “Paid ad usage and whitelisting are priced separately. Here is my rate for each.”

Broad exclusivity

What it looks like: You cannot work with any competitor, a whole category, for months, with no extra pay.

Why it costs you: Exclusivity blocks future income. A long, unpaid window can cost you more than the deal pays.

What to say back: “I can offer 30 days of category exclusivity. A longer or broader window is an added fee.”

Slow or approval-gated payment

What it looks like: Net 60 to 120 days, or payment only after the brand approves the content.

Why it costs you: You carry the cost and the risk. Approval-gated payment lets a brand delay or dodge paying at all.

What to say back: “My terms are 50 percent upfront and the balance within 30 days of delivery.”

AI and likeness rights

What it looks like: Rights to train AI on your content, generate new content in your likeness, or edit your face and voice.

Why it costs you: There is no settled market price and the downside is open-ended. This is not a standard UGC term.

What to say back: “AI training and likeness rights are not included. Remove this clause or price it as a separate buyout.”

One-sided indemnification or free cancellation

What it looks like: You carry all the legal risk, or the brand can cancel any time with no kill fee.

Why it costs you: You can end up unpaid for finished work, or liable for the brand's use of your content.

What to say back: “I need a mutual indemnification clause and a 50 percent kill fee if the deal is cancelled after work starts.”

Not sure which clauses are in your contract?

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Red flag type 2: it is not a real brand

If you see any of these, treat the offer as a scam until it proves otherwise. An honest brand never needs urgency, and money never flows from you.

You are asked to pay anything upfront, or to buy the product first and get reimbursed later.
Payment is offered in gift cards or crypto, or you are overpaid and asked to refund the difference.
The brand emails from a free Gmail or Outlook address while using a corporate name.
You are pushed to act fast, sign now, or the deal disappears.
You cannot independently confirm the brand or the person, and the links come only from their message.

A brand just sent me a contract. What now?

1Confirm it is real. Search the company yourself, go to its actual site and socials, and check the sender works there. Do not use links from the message.
2Read the money clauses. Usage rights, exclusivity, payment terms, and AI or likeness. These decide what the deal is really worth.
3Price what the brand wants. Any paid usage, whitelisting, or exclusivity is a separate fee on top of your base rate.
4Send counter-asks, then sign. Reply warm and specific with the changes you need. A fair brand will work with you.

Frequently asked questions

Is this UGC offer a scam?

Treat it as a scam until it proves otherwise if any money has to flow from you, if payment is in gift cards or crypto, if the brand uses a free email address, or if you cannot confirm the company yourself. A real brand will happily put the deliverables, usage, timeline, and payment in writing.

Are perpetual usage rights normal in a brand deal?

No. Perpetual usage is common in contracts because it favors the brand, but it is not a fair default. It should be removed, limited to a set term, or paid for as a buyout at 150 to 300 percent or more of your base fee.

A brand just sent me a contract. What do I do first?

First confirm the brand and the sender are real. Then read the usage rights, exclusivity, payment terms, and AI or likeness clauses. Price any usage the brand wants, and send warm, specific counter-asks before you sign. You can do this yourself or upload the contract for a full review.

Should I sign if I cannot afford a lawyer?

Most UGC deals do not need a lawyer. The money is usually lost on usage rights and exclusivity, which you can check with the red flags on this page, with one of your two free reviews, or with a paid review at $15 during the founding offer, normally $25. Save the lawyer for large or unusual agreements.

Last updated 2026-07-27. Not legal advice, a data informed second opinion.