The Problem of Handshake Deals
For years, the relationship between India's content creators and brands has been built on a precarious foundation of verbal agreements, vague email chains, and last-minute negotiations. While this flexibility helped the creator economy grow rapidly, it left
individual creators vulnerable. Issues like delayed payments, outright non-payment, and 'scope creep'—where brands demand more work than initially agreed upon—have been rampant. A lack of formal contracts meant creators had little legal recourse when disputes arose. This power imbalance often left them chasing invoices for months, disrupting their financial stability and undermining the professional nature of their work. The absence of clear terms regarding content usage rights also meant brands could repurpose a creator's work indefinitely without further compensation, a significant pain point in the industry.
A Push for Professionalism
The conversation around creator rights and formalisation is gaining significant momentum. While a rumoured 'National Creator Economy Bill 2026' turned out to be unsubstantiated, the viral discussion it sparked highlighted a real and urgent need for industry-wide standards. That said, the government has taken notice. The Code on Social Security, 2020, was an early step in recognizing gig workers, and various state-level initiatives are emerging. More formally, a proposed framework from early 2026 aims to grant digital artists and influencers official professional status, which would include the introduction of legal templates for brand collaborations. This move is designed to end the era of ambiguous verbal agreements and provide a formal system for resolving payment disputes.
What Standardised Contracts Contain
These new standardised contracts are designed to bring clarity and security to brand collaborations. The core components include a detailed scope of work, outlining the exact number of deliverables, content formats (e.g., Reels, videos, stories), and specific campaign timelines. Crucially, they establish a fixed payment schedule, linking payments to milestones like content approval and publication, thus eliminating guesswork and delays. Another key area is usage rights, which will now clearly define how and for how long a brand can use the creator's content. Clauses covering content approval processes, exclusivity periods, and termination conditions are also included, providing a clear rulebook for the entire engagement. This level of detail transforms a casual collaboration into a professional business transaction.
A Win-Win for Creators and Brands
While creators are the immediate beneficiaries of this shift, brands and agencies also stand to gain significantly. For creators, standardised contracts mean predictable income, stronger financial security, and the professional respect they have long sought. It empowers them to negotiate from a stronger position and protects their intellectual property. For brands, these contracts introduce reliability and professionalism into their influencer marketing campaigns. Clear terms reduce the risk of miscommunication and disputes, ensuring campaigns are executed smoothly and on schedule. It allows for better budget management and provides legal clarity on content ownership. Ultimately, a more professional and stable creator ecosystem is a more effective and reliable one for brands to invest in.
The Road to Widespread Adoption
The transition to standardised contracts will not happen overnight. The creator economy in India involves millions of participants, from nano-influencers to established digital stars. Adoption will likely be driven first by leading talent agencies and larger brands that are accustomed to formal procurement processes. Independent creators will need to educate themselves on the importance of these contracts and insist on using them. Meanwhile, regulatory bodies like the Advertising Standards Council of India (ASCI) continue to tighten rules around disclosure for paid promotions, including for AI-generated virtual influencers, which adds another layer of formalisation to the industry. As the industry matures, the expectation is that formal, transparent agreements will become the norm rather than the exception, building a more sustainable foundation for all stakeholders.
